JR Capital completes on Virgin Leisure Investment

Posted by JR-Capital in News

JR Capital is pleased to announce that we have completed the purchase of a prime leisure investment in Northampton leased to Virgin Active Holdings Limited for a further 25 years with no breaks.


The property is used by Virgin Active www.virginactive.co.uk as a health and fitness club and is their premier facility in the region.


A freehold property set on circa 5 acres in the attractive Collingtree Park, a high end residential area just South of Northampton Town Centre, it has a strong residual land value and offers potential to carry out further development to the site to add value in the medium to long term.


The property was purchased from a Danish Fund for £4,940,000 representing a Net Initial Yield of 6.21% with the benefit of annual uncapped increases in rent of a minimum of 2.5% per year.


The property was purchased in cash and senior debt will be raised at a later stage.


John Collier-Wright commented “ We are pleased to have completed the purchase of this well located and high quality health club facility leased to the number one operator in the sector. With high yielding and long dated income it provides attractive cash on cash returns in the current low interest rate environment”


The property was acquired with a major Bahraini conglomerate as part of a growing UK wide income portfolio.


GVA acted for JR Capital and Gerard Eve acted for the vendor.



24 Jan 2014