A new roadside development in Swindon including a Subway and a Starbucks with drive-throughs has been given £8.3m of financial backing.
The ‘property‘ will feature a 1,800 sqft Starbucks drive-through and will account for 21% of the total property value on a new 15 year lease.
There will also be a 1,250 sq ft drive-through restaurant pre-let to Subway. This will account for 6% of the total property value on a new 15 year lease.
A Travelodge hotel will also be built on the site and will account for 73% of the total property value on a new 25 year lease.
The investment has been provided by real estate firm, LXi REIT plc, and will see the development built on one of the main arterial routes into central Swindon, approximately one mile to the west of the town centre.
It is strategically located adjacent to the M4 motorway with good rail connectivity to London and a broad range of significant employers, including major manufacturing plants for Honda and BMW/Mini, as well as head office functions for Npower, Nationwide Building Society and Intel’s main site in the UK. Other local occupiers include John Lewis At Home, Next Home, B&Q and Lidl.
“We are pleased to provide the forward funding for this attractive, long-let and index-linked hotel and leisure development asset, which benefits from a strong location and residual value,“ commented Simon Lee, partner of LXi REIT Advisors Limited.