Riverside Capital sells £4.35 million Pure Gym, returning 2x equity to investors

Riverside Capital has sold its Pure Gym in Wandsworth, South London, for £4.35 million, returning investors double their money in 4 years. The acquisition was completed by AEW UK Long Lease REIT Plc on 10 October 2017.

The 19,900 sq. ft. gym, located on the ground floor and basement level of Cantilever House on Wandsworth Road, is let to Pure Gym Limited until 2032.  Lease reviews are linked to RPI, subject to a collar and cap of 1% and 4%.

Its sale, at a net initial yield of 5.06%, demonstrates the continued demand for performance linked income within this growing sector.

Ashley Wilcox, Investment Director at Riverside Capital, said: “We are delighted with the stellar returns generated by the Pure Gym deal.  The Nine Elms and Battersea story has been phenomenal.  In addition, Pure Gym is now the UK’s leading gym operator.  These two dynamics were key to our business plan and this deal highlights the importance of investing into sub-markets and covenants at the right time.”

Cushman & Wakefield acted on behalf of AEW UK Long Lease REIT Plc, with Levy Real Estate LLP acting for Riverside Capital.


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