London gym investment sells for £4.35m

Acting on behalf of Riverside Capital, Levy Real Estate has sold the virtual freehold interest of a gym investment at 212 Wandsworth Road, London SW8 for £4.35m. Pure Gym occupies 19,900 sq ft on the ground and lower ground floor in the building on a 20-year lease with RPI-linked five yearly rent reviews. The current rent equates to £11.20 per sq ft, and the sale of the 999-year interest reflected a net initial yield of 5.06%.

Levy’s Matt Paulson-Ellis comments: “The health & fitness sector in London is growing at a rapid rate with occupier demand fuelled by an array of new concepts and offers from budget gyms to luxury healthclubs. The number of Londoners using private health & fitness facilities is forecast to grow by 20% to reach 6.5m by the year 2020.

“This is driving both strong demand from operators and also from property investors who are targeting the long-term income investments which are being created.”