Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, today announces the freehold acquisition of a Virgin Active gym, located on Smugglers Way, Wandsworth, London for £12.95 million. The transaction, made on behalf of St James’s Place Property Unit Trust from TH Real Estate, reflects a net initial yield of 5.0%.
Located in a three-storey, high-specification building totalling 40,192 sq ft, the Virgin Active gym benefits from impressive facilities including two floors of gym and fitness class facilities, a 25-metre heated swimming pool, and a steam room and sauna. The property is single let to Virgin Active with approximately 20 years unexpired and benefits from an RPI linked rent review in 2021.
The surrounding area has seen remarkable growth in recent years following a period of regeneration and a number of new housing developments. Battersea Reach, Riverside Quarter and The Schoolyard are all new additions to the area’s residential make-up, with sales values exceeding £1,000 per sq ft. Wandsworth Town railway station is a short walk away, and Central London is within easy reach. Other well-known commercial brands within the immediate vicinity include Mercedes-Benz, B&Q and Homebase.
Tom Chadwick at Orchard Street, commented:
“We expect the drivers of demand to improve for this gym with the increasing level of residential development in the local vicinity, making this a strong long-term hold within the portfolio.”
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Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.