Site of Ipswich's DW Fitness gym sold for £4.6m
PUBLISHED: 12:19 02 May 2019 | UPDATED: 12:19 02 May 2019
The site housing Ipswich's DW Fitness and Orwell Motorcycles has been sold for £4.6m.
Highcroft Investments has bought the freehold interest of the gym and retail warehouse in Ranelagh Road from Huron Properties.
The deal, worth £4,650,000, will see the investment firm take over the two detached buildings - which total 43,738sq ft.
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However the futures of the two businesses remain secure at the location.
The gym and swimming pool is let to Dave Whelan Sports until September 2035 while the motorcycle showroom is let to Orwell Motorcycles until September 2026.
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The investment firm will collect a total of £347,557 from the two businesses each year.
This will rise to £386,769 a year from September next year as part of a fixed increase – with further fixed increases scheduled for 2021, 2025 and 2030.
Simon Gill, Highcroft Investments' chief executive, said: “This investment provides a good long-term income stream with fixed increase throughout the term.
“It provides an attractive yield for our shareholders of over 7%, which is due to increase to a minimum of 7.83% in September next year.”
He added: “The gym services a large residential development which adjoins the subject site, as well as other areas of the town.
“We continue to look for other commercial investments with long-term income streams and prospects for future enhancement.”