The Conygar Investment Company has purchased the long-leasehold interest of the site occupied by Virgin Active gym, located on The Great Northern Close at The Island Quarter, Nottingham.
The freehold of the site is already owned by Conygar, with the leasehold purchased from Wood Pension fund.
The purchase, which enables better control of Conygar’s arrangements for this and the adjoining site at The Island Quarter, was subject to signing a new direct 25-year lease with Virgin Active at a rent of £600,000 per annum with a 12-month rent free period spread across the first 24 months.
This will replace the rent received by Conygar from the long-leasehold, which amounted to 10% of the rent previously received by the vendor from Virgin Active.
The purchase price of £5.9 million was funded by way of a drawdown of the second and final £7 million tranche of an existing debt facility with ASK Partners Ltd. The surplus funds received over the purchase price and associated fees will be applied in the further progression of The Island Quarter.
