374 Gloucester Rd 23,025 SF Retail Building Cheltenham GL51 7AY $5,329,567 ($231.47/SF) 6.10% Cap Rate

Positioned on the high-profile A40 Gloucester Road, this newly converted McDonald’s restaurant offers a rare opportunity to acquire a secure, long-income roadside investment in the affluent and strategically located town of Cheltenham. The property benefits from a 999-year virtual freehold at a peppercorn rent and is let to McDonald’s Restaurants Ltd on a new 25-year full repairing and insuring lease from February 2025, with a tenant-only break at year 15.
The 6,170 sq ft restaurant features approximately 120 internal covers, an external seating terrace, and a dedicated children’s play area. It shares a 93-space car park with the adjacent Premier Inn and enjoys excellent visibility and access from the A40, a key arterial route with daily traffic volumes of approximately 24,500 vehicles. The site is further enhanced by its proximity to the M5 motorway (3 miles), Cheltenham Spa railway station (500 metres), and nearby retail anchors including Shell and Little Waitrose.
With a fixed rental uplift to £280,000 in 2030 and upward-only open market reviews thereafter, this asset offers strong income growth potential. The tenant’s robust covenant, underpinned by McDonald’s UK-wide presence and financial strength, ensures long-term stability for investors.