New Starbucks Drive-Thru
Thornton Rd | Bradford | BD1 2JD
OFFERS IN EXCESS OF £2,100,000, stc
OFFERS IN EXCESS OF £2,100,000, stc
Contact us for more details about this property
investment summary
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New Roadside Development
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Let to Starbucks & E.ON Next
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New 20 Year leases
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CPI Linked Rent Reviews
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Annual rent of £127,500
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Opportunity for Forward Funding
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Offers in excess of £2,100,000
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Freehold
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Net Initial Yield of 5.71%
LOCATION
With a population of 534,300 people, Bradford is UK’s 6th largest city and 29% of its population is under 20. Bradford City Centre is widely regarded as the ‘youngest’ city in Europe where 29% of people are aged under 20 and almost 25% under 16. Furthermore, the demographic is one of the most diverse throughout the UK.
This growing trend of different cultures and background has enabled the city to bid for the City of Culture on numerous occasions Bradford has been announced as the Winner of UK City of Culture 2025. Hull (2017 winner) has attracted in excess of 5 million people; consequently, Hull has seen an economic growth where 800 new jobs was created, with 1 in 4 business have recruited staff.
SITUATION
The Property fronts onto Thornton Road with 22,881 vehicles passing daily (according to Government records).
The site will include the retail unit, 26 parking bays, 8 EV charging bays disabled parking bays and order waiting bays.
In terms of the wider location, there is a new petrol filling station and shop being developed directly adjacent, and a new £40m Bradford Energy Network ‘Energy Centre’ is planned behind the site.
The centre will use air source heat pumps and an underground network of pipes to provide low carbon heating to public buildings in the city centre.
DEVELOPMENT TIMELINE
the developer
The Harkalm Group is a leading UK property investment and development company, specialising in the retail, convenience, roadside and education sectors. With extensive expertise in the roadside sector, The Harkalm Group partners with occupiers to support their organic growth by identifying, acquiring, and developing high-quality, purpose-built properties across the UK.
COVENaNT
23.5 Degrees is Starbucks’ first and largest UK franchisee. They opened their first store in February 2013 and now have 110 stores (73 of which are Drive Thru) across the UK with another 25 in the pipeline over the next year, they continue to go from strength to strength. www.23-5degrees.com.
In October 2024 23.5 Degrees was acquired by Starbucks Coffee Company.
Operating in over 50 countries, and with in excess of 17,000 stores, Starbucks are the worlds largest coffee company. For the year ending 29th September 2023, Starbucks Coffee Company (UK) Limited reported a turnover of £547m. For the same period the company reported shareholders’ funds of £38m. www.starbucks.com.
Starbucks’ net revenue reached 29.46 billion U.S. dollars in 2023. This shows an increase over the previous year's total of 26.58 billion U.S. dollars. www.starbucks.com.
E.ON Next is a new part of the E.ON group, focusing on providing renewable energy to customers across the UK.
E.ON Drive Infrastructure is a charge point operator that combines network development, construction and operation of public charging infrastructure. www.eonnext.com.
E.ON Drive Infrastructure is a charge point operator that combines network development, construction and operation of public charging infrastructure. www.eonnext.com.
E.ON UK is a British energy company and one of the largest suppliers of energy in the UK, it is a subsidiary of E.ON of Germany and one of the Big Six energy suppliers.
As of July 2023, E.ON Next has a 17.1% UK market share of domestic electricity supply and 14.4% UK market share of domestic gas supply. The company currently employs between 1000-5000 employees.
The UK division E.ON has posted a pre-tax profit of £49m for 2023, according to newly-filed accounts with Companies House www.eonenergy.com.
TENANCY SCHEDULE
| Unit | Tenant | Rent | Term | Reviews |
| Drive - thru | 23.5 Degrees Limited | £95,000 p.a. | 20 Years (No Breaks) | CPI cap and collar 1-3% on the Year 5 and 10 review, reverting to OMV on year 15 |
| EV Chargers | E.ON Drive Infrastructure UK Limited | £32,800 p.a. | 20 Years (No Breaks | Annually Indexed to CPI 2% & 4% cap and collar |
proposal
We are seeking offers of £2,100,000 (Two Million, One Hundred Thousand Pounds) for the freehold interest subject to contract and exclusive of VAT.
A purchase at this level would reflect a net initial yield of 5.71% assuming purchasers costs of 6.30%.
Important Information: These details are provided for general information purposes and whilst every effort has been made to ensure accuracy, no responsibility is taken for any errors or omission or miss-statement in these particulars. Noting in these details constitutes an offer or contract. No responsibility or warranty whatsoever is made during negotiations by the agent, seller or lessor. All plans provided are for identification only and are not to be scaled or to be relied upon. No services have been tested and no warranty is given on their existence or condition. All interested parties are required to carry out their own due diligence. Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax (V.A.T.). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of V.A.T. in respect of any transaction. No part of this document should be re-produced or transmitted without the prior written consent of the agent.
Note: All prices quoted are Subject to Contract and Exclusive of VAT