News - 12/06/2018

Belfast City Centre Gym Space Sells To Northern Irish Private Investor

A prime Belfast city centre property which is currently let to PureGym has been sold off-market to a local private investor for £2.46m, reflecting a net initial yield of 6.52 per cent.

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The leisure investment at 22 Adelaide Street comprises three floors of a six-storey red brick leisure and office building. The ground, first and second floors are currently used as gym facilities with the remaining three upper floors used as offices.

Pure Gym is the UK’s largest gym chain by membership with about 450,000 members currently signed up. It holds a lease for the 15,500 sq ft space until July 2029.

The property is located within the Linen Quarter in the prime business district. It is adjacent to Adelaide Exchange, a major office and hotel development with occupiers including Premier Inn Hotel and Liberty IT.

Lambert Smith Hampton (LSH) acted on behalf of the purchaser.

Neil McShane, director of capital markets at LSH, said:

“We are delighted to have secured this brilliant investment opportunity for our client. This building offers a long-term secure income over the next 11 years to a well-established gym operator. With a lack of available properties in the local market at the moment and demand remaining strong we are constantly trying to identify opportunities on an off-market basis.”

Robert Ditty, director in CBRE who acted jointly as selling agents with McGeown Commercial, said:

“This off-market sale continues to demonstrate interest for prime city centre investment opportunities from local clients. Many are now focusing on alternative sectors such as leisure which typically offer longer leases and better returns compared to other sectors.”