Highcroft invests in Birmingham health and fitness club – Highcroft Investments (HCFT) has exchanged on the purchase of the freehold interest of a health and fitness club investment in Birmingham from BAE Systems Pension Funds Trustees Limited.
The property comprises a purpose built health and fitness club, with swimming pool, of approximately 37,500 sq ft, on a 3 acre site. It is operated by Nuffield Health on a lease that expires in October 2024 producing an income of £365,867 per annum. The purchase price was £4.9m which represents a net yield of 7.0%.
The acquisition was made from existing cash reserves and supplemented by the sale of some equity investments.
After this acquisition the LTV of the business will be 24%.
Completion of the transaction is expected to take place on 23rd July 2018.
Comment from Simon Gill, chief executive
“Within a month of selling our investments in Cirencester and Marylebone, London W1 we are pleased to reinvest the proceeds into this attractive investment which occupies a large site in an area of Birmingham which is expected to witness further development. This is our first acquisition in this sector of the property market and accords with our stated objectives of selling our last residential asset, increasing our average lot size and reducing our holdings on the high street.”
More on Highcroft
Highcroft Investments PLC is a Real Estate Investment Trust (REIT) holding property and equity investments.
Highcroft’s shares are listed on the full list of the London Stock Exchange.