Investor fit and healthy after £5m gym deal
REAL estate property investor Custodian, has boosted its portfolio with the near £5m purchase of a health and fitness centre in Stoke-on-Trent.
The trust has acquired the 37,598 sq ft building on George Eastham Avenue. The property is adjacent to the Britannia Stadium, home of Stoke City FC, a Holiday Inn, Harvester and Audi, Lexus and Volkswagen car dealerships.
The unit is let to Greens Health & Fitness (trading as Nuffield Health) on a lease expiring in April 2025, with current passing rent of £349,209 per annum reflecting a net initial yield of 6.75%.
The agreed purchase price of £4.855m, was funded from the trust’s existing debt facilities, resulting in net gearing increasing to 18.0% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital (the company’s discretionary investment manager), said: “We are delighted to have acquired this high specification, purpose built health and fitness centre in an established and prominent location with more than eight years remaining on the lease.
“The tenant has demonstrated a strong commitment to the location and we believe there is reversionary potential at the 2020 rent review. This property adds further diversification to the portfolio.”
Custodian’s portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by small lot sizes, with individual property values of less than £10m at acquisition.
