St Neots : Leisure Park
Acting on behalf of HPPUT, who were advised by Gerald Eve, Fawcett Mead has sold this prime leisure investment to Huntingdonshire District Council. The purchase price of £7,600,000 reflected a NIY of 6.75%. 92% of the income is attributable to Cineworld, Prezzo, Frankie and Bennys, Pizza Express and Britannia Parking, with a WAULT of c.18 years.
- Prime leisure investment in affluent market town
- Passing Rent: £525,547 per annum
- Net Initial Yield: 6.75%
- Price: £7,600,000
Nick Carvey commented: "Despite the challenges with the Prezzo CVA and Frankie & Bennys covenant post marketing, this property attracted a number of competitive bids and we are delighted to have secured a strong exit price for our client. Both parties are very happy with the result."
Huntingdonshire District Council were represented by Clay Street.
Clapham Junction : Shopstop
Fawcett Mead have recently acted on behalf of DTZ Investors on the acquisition of this prime mixed-use investment in the heart of Central London.
- 2.3 acre mixed use site in the heart of Central London
- Price: circa £137,000,000
Shopstop is formed of a site area of 2.3 acres and provides circa 74,500 sq ft of retail, leisure and office accommodation which benefits from being located at the main entrance to Clapham Junction railway station, Europe’s busiest railway interchange, with an estimated annual footfall of c. 31 million.
The property is 100% let to tenants including M&S Simply Food, Sainsbury’s, Monsoon, Superdrug and Fitness First. There is also office accommodation on the upper floors which is occupied by Moss Bros and acts as their UK headquarters. Over 20% of the current income is secured for over 10 years.
It is the first time that this property has been traded in the open market for 18 years. The acquisition of the strategically located 2.3 acre site offers numerous long-term opportunities, including inclusion in the area’s wider development plans, whilst being underwritten by the strong existing tenant line up and income profile.
Jonathan Mills commented: “We are delighted to have secured this acquisition for our client, DTZ Investors, against intense competition. Comprising a 2.3 acre, mixed use site in the heart of Central London, the property offers a multitude of asset management opportunities. The property represented a once in a generation opportunity to secure one of the most exciting repositioning projects in London.”
Romford : 105-111 South Street
Fawcett Mead have recently acted on the sale of this prime long-let leisure investment in Romford, Essex. The property is let to the strong covenant of Stonegate Pub Company Limited until March 2038. The sale price of £3,145,000 reflects a net initial yield of 5.33%. Tom Heptonstall commented: "We are delighted to have secured a strong exit price for our client after a "quiet" marketing campaign. Both parties were very pleased with the result."
- Prime leisure investment in the busy London suburb of Romford
- Passing Rent: £178,000 per annum
- Net Initial Yield: 5.33%
- Price: £3,145,000
Plymouth : Derrys Cross Leisure
Fawcett Mead has recently acted on behalf of Plymouth City Council on the purchase of this freehold city centre leisure investment. The property comprises a Travelodge Hotel, a gym and four restaurants/bars. The purchase price of £17.25 million reflected a NIY of 5.20%.
- Passing Rent: £888,431
- Net Initial Yield: 5.20%
- Price: £17,250,000
The property has a WAULT of 17.45 years and 70% of the income is subject to indexed or fixed rental increases. Richard Bashford commented: “We were very pleased to secure this investment property on behalf of Plymouth City Council on an off market basis”.
Cheshire Oaks : Cheshire Oaks Leisure Park
Fawcett Mead are delighted to have acted on the sale of Cheshire Oaks Leisure Park on behalf of Lateral Property. The well-let leisure park is located in a prominent gateway site adjacent to the entrance of Cheshire Oaks Designer Outlet. The property provides a WAULT of 17 years and tenants include KFC, TGI Fridays and Costa Coffee. A purchase price of £6,630,000 reflects a net initial yield of 5.25%, assuming purchasers costs of 6.64%.
- Prime out-of-town leisure opportunity
- Passing Rent: £371,931 per annum
- Net Initial Yield: 5.25%
- Price: £6,630,000
Finchley : Pure Gym
Fawcett Mead are pleased to have represented a private client on the sale of Pure Gym, East End Road, Finchley.
- 24 Hour Gym in London Finchley
- Passing Rent: £297,604 per annum
- Net Initial Yield: 6.14%
- Price: £4,550,000
The property is held long leasehold from the London Borough of Barnet for a further 125.5 years at a peppercorn rent. It is let to Pure Gym for a further 19.8 years, generating an annual income of £297,604.
Norwich : The Former Royal Hotel
Fawcett Mead are pleased to have acted on the sale of The Former Royal Hotel, a landmark building located in the historic cathedral city of Norwich.
- Landmark property with substantial development opportunity
- Passing Rent: £158,000 per annum
- Price: £3,150,000
The subject property, which was constructed in 1897, comprises approximately 40,126 sq ft in total accommodation. The ground floor is let to three commercial tenants; Bidwells LLP, Be At One Ltd and Brandex (Europe) Ltd. The commercial tenants provide a WAULT of 10 years to expiry. The upper floors are completely underutilised, and offer the opportunity for residential conversion.
The investment was purchased for £3,150,000.