Property News Virgin Active Health & Fitness

Virgin Active

Colliers International, acting on behalf of Colliers Capital, has completed on the purchase of two freehold health & racquet clubs located in Poole and Gloucester.

Both clubs are let by way of a joint tenancy to Holmes Place Health Clubs Ltd and Virgin Active Ltd on full repairing and insuring leases, with over 24 years unexpired term remaining on each lease. There is one fixed increase in the rents in 2016, and thereafter rent reviews are on an annual basis and geared to the rise in the Retail Price Index subject to a cap and collar.

Nigel Holroyd, Head of Colliers Capital stated: “We are delighted to acquire two modern purpose built health clubs let on long leases with guaranteed rental increases throughout the term.”

The purchase price paid to British Land for the two clubs totalled £10,380,000 and reflected a net initial yield of 6.20%.

Tim Meakes, Head of Specialist Investment at Colliers International and who originally sold the portfolio by way of a sale and leaseback transaction in August 2011 commented, “There is currently a huge appetite and weight of money from the Institutional Investors for RPI linked income.  We are pleased to have secured these off market and remain one of the most active Agents within the sector.”

British Land plc was advised by Lewis & Partners.

Uxbridge