Highcroft Investments has announced that has completed on the purchase of the freehold interest of a gym and retail warehouse investment in Ipswich for £4,650,000, representing a net yield of 7.04%. The seller was Huron Properties Limited and the purchase has been funded from the company’s existing debt facilities.
Dave Whelan Sports and Orwell Motorcycles
The property comprises two detached buildings totalling 43,738 square feet. It occupies a site of approximately 3.1 acres, consisting of a gym with swimming pool let to Dave Whelan Sports Ltd, until September 2035; and a motorcycle showroom let to Orwell Motorcycles Ltd, until September 2026.
The total income is £347,557 per annum which rises, by way of a fixed increase, to £386,769 per annum in September 2020. There are further fixed increases in 2021, 2025 and 2030.
Thoughts from Simon Gil
Commenting on the acquisition, chief executive Simon Gill said: ‘This investment provides a good long-term income stream with fixed increases throughout the term. It provides an attractive yield for our shareholders of over 7%, which is due to increase to a minimum of 7.83% in September next year. The gym services a large residential development which adjoins the subject site, as well as other areas of the town. We continue to look for other commercial investments with long-term income streams and prospects for future enhancement.’
About Highcroft Investments
Highcroft Investments is a REIT with a diversified portfolio of retail, offices and industrial property, predominantly in the south of England, and a portfolio of equity investments.
The fund’s website can be found here.