JR Capital heads East for Pure income
JR Capital has completed the purchase of a leisure investment leased to Pure Gym in Limehouse Marina in East London for £4.25m.
The virtual freehold property provides 20 years of secure and indexed linked income to the UK’s largest gym operator and was purchased for £4.2m.
The purchase price reflects a net initial yield of 5.5% and a capital value of £250per sq ft.
The property was acquired in joint venture with one of JR Capital’s private Middle Eastern investors and forms part of a wider London and South East commercial property portfolio.
The property was acquired off market from a UK private investor.
Savills acted for the vendor and BNP Paribas Real Estate acted for JR Capital.
John Collier-Wright, founder and chief executive of JR Capital said: “We originally put this asset under offer 18 months ago however, the vendor withdrew from the sale. When the opportunity came back over the summer we were able to react quickly to conclude the purchase at last years’ agreed price, which we feel represents good value.
“In a prime position overlooking the Marina, directly next to the train station and set within an upmarket residential development this Central London asset provides well secured, defensive and relatively high yielding income.
“We are pleased to have closed another transaction for our long income platform, which focuses on buying long indexed linked income secured to well-known covenants, with a strong underlying land value.”