Acquisition of Starbucks restaurant in the North West

We privately sourced this investment as our client was seeking long term reliable income to add to her portfolio. We were ideally looking for a min 15-year term lease backed by a strong tenant (often referred to as a strong covenant) and had a budget of £350,000 cash to work with.

Through our professional connections, we sourced three separate commercial opportunities and our client decided upon a Starbucks offering. This was not a franchise opportunity but rather an acquisition of premises in a prime city-centre location for a Starbucks franchise to enter into a long term lease contract upon acquisition. We negotiated the acquisition price down from £330,000 to £310,00 saving our client money and also, we introduced our client to our legal team that gave them very solid advice in relation to the lease terms with Starbucks.

The franchisee signed a 20-year term lease with an income yield of 7.5% with upwards-only rising rents every 5 years and a break clause at 10 years.

The same client has a pension fund with over £500,000 and has now instructed us to source a similar investment opportunity as she is aware from our conversations that it is possible for a pension scheme to acquire commercial buildings as an allowable investment asset, with rents collected by the pension fund to be tax-free income, which in turn will grow our clients' fund until she reaches retirement age.

We connected our client to our Independent Financial Advisers, Accountants and Solicitors that were all able to work together as a team for the clients' benefit.