Nuffield Health, Derby

This investment opportunity provides a good example of how a lease restructure can provide both value add and capital appreciation. Riverside Capital purchased what was a Virgin Active gym for £7.18m in March 2015. Recognising the possibility of a lease restructure, the lease was reassigned to Nuffield Health, improving the tenant covenant whilst also maintaining income levels. The property, then let to Nuffield on a 25 year lease, was sold to Knight Frank Investment Management. Its sale, at £9.85m (5.14% NIY) returned 1.3x equity to investors over a 40 month hold period.

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  • Hold period 3.3 years
  • Property value uplift 37%
  • IRR 8.47%
  • Equity multiple 1.3x