Conygar limbers up with Nottingham gym site acquisition

Developer Conygar has bought the long-leasehold interest of the site occupied by Virgin Active gym, next to its Island Quarter redevelopment site in Nottingham in a deal worth almost £6m.

The freehold of the site is already owned by Conygar, with the leasehold purchased from Wood Pension fund.

Conygar said the deal “enables the better control” of the site and the adjoining Island Quarter site, and was subject to signing a new direct 25-year lease with Virgin Active at a rent of £600,000 per annum with a 12-month rent free period spread across the first 24 months. This will replace the rent received by Conygar from the long-leasehold, which amounted to 10% of the rent previously received by the vendor from Virgin Active.

The purchase price of £5.9m was funded by way of a drawdown of the second and final £7m tranche of the existing debt facility with ASK Partners. The surplus funds received over the purchase price and associated fees will be applied in the further progression of The Island Quarter, said Conygar.

On Thursday (May 16), Conygar revealed it has made a £3.8m loss for the six months to the end of March.