Burger King

Our experienced Agency team provides a comprehensive range of services covering all aspects of the acquisition, disposal and development of commercial property. We work in all key sectors, including office, retail and industrial property and student accommodation.

We offer a high-value, results-driven service, provided in a friendly and professional manner. We’ll work closely with you to ensure we deliver the results you need, providing guidance, support and advice, every step of the way.

We take a strategic approach to everything we do, basing our decisions on up-to-the minute research and our long experience working on some of the biggest deals in Scottish commercial property sector.

Approach

Graham + Sibbald have been retained by SRA Ventures as their trusted property advisors for many years. We know the type of investments they like but more importantly we understand what Chairman, Shaf Rasul and Chief Operating Officer, Susana Garcia are looking for. Simply put, these are value add opportunities that can be improved either through asset management or investment.

With an upcoming Rent Review and a sluggish sales process, Burger King Irvine was just that.

In May 2018, the Burger King Drive-Thru in Irvine was marketed For Sale at £1.4m representing a NIY of 6.48%. As the Drive Thru sector was very competitive, the deal only made sense, at the right level to SRA Ventures. G+S decided to monitor the investment on their behalf, eventually choosing to engage with the Vendors in August 2018. This was three months after it was initially launched.

G+S advised SRA Ventures that as a cash buyer with the ability to transact quickly, they were in a very strong position. With agreement and following swift negotiations by G+S, SRA Ventures acquired the investment at £1.2m (7.54% NIY) a significant discount to the original asking price.

By late 2020 the SRA Team had successfully delivered their business plan and G+S advised it was an opportune time sell. In November 2020 the Capital Markets team, advised SRA Ventures to market the investment based on an asking price of £1.6m (6.2% NIY).

The marketing campaign began on 1st December 2020, targeting the active investors and agents in the market within the G+S database. This process generated significant interest, allowing G+S to select the investor with the best track record ensuring deal certainty for our client. Within 3 weeks from the start of the marketing campaign, SRA went under offer. The deal was concluded at £1.55m on 28th January 2021. A very positive result for all involved, especially taking into account the back drop of the pandemic.

Key Challenges

Commencing marketing only 25 days prior to Christmas gave the Capital Markets team a limited marketing period. Nonetheless, the deep and lasting relationship we have with our client ensured clear advice from start to finish and the targeted campaign ensured maximum coverage to deliver a successful conclusion within the opportune timeframe.

Results

Following the years of working with the SRA Ventures team G+S recognise that the Burger King Irvine offered a great opportunity to add value. During their ownership SRA Ventures enjoyed a 7.54% NIY return on their investment and an almost 30% return within 28 months.

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