Healthy north-east deal for Nottingham agency

Acting on behalf of a private client, Nottingham-based NG Chartered Surveyors has bought the freehold interest of a purpose built gymnasium in Hartlepool, subject to a long occupational lease for the next 82 years.

The deal stemmed from the NG’s Jonathon Seddon having been retained to identify and acquire a suitable investment property for the client using the proceeds from a previous land deal he had worked on for the client.

Seddon said: “The attraction of the investment for our client was the strength of the tenant’s covenant and the fact that, unlike most long lease investments, the rental is regularly reviewed in line with the Retail Price Index. As there are no caps or collar on the rent review terms, it is a truly inflation proof investment that will retain its value for many years to come, particularly as the covenant of the tenant company, The Gym Ltd (trading as Pure Gym) is impeccable.”

The deal was particularly satisfying says Seddon, as the due diligence undertaken on the purchase highlighted a potentially costly highways issue that had to be resolved by working closely with the selling agent, Robin Bullas at CBRE and the solicitor of NG’s client, Antonia Gardner of Gunnercooke.

Gardner said: “As usual, a deal runs more smoothly when all parties co-operate and that was certainly the case here. There were both complicated legal issues and practical points that needed to be resolved and with everyone pulling in the same direction we certainly managed this.”

Bullas added: We are pleased to have disposed of this leisure investment, after active asset management and securing a stronger covenant. It is an excellent deal for our client and underlines the strength of demand among investors for long term income producing investments with RPI uplifts.”