The price reflects a net initial yield of 6.5% and the Asset has been acquired with a weighted unexpired lease term of 14.9 years. The acquisition reinvests the remainder of the net proceeds from the Group’s last property disposal.
The property is fully let to Champneys Tring Limited, the beauty and health brand and benefits from a parkland vista within the rural estate of the Champneys Tring Spa Resort. Champneys have occupied the property since 1976 and it has been used as either staff accommodation or for training purposes.
The building comprises a total of 5,855 sq ft of treatment and training rooms, together with a large car park on a 1.75 acre site. The property has previously been granted planning consent for change of use to residential use.
The property has a passing rent of £175,000 pa until the next rent review, which is due in April 2028. The lease of the Asset, which expires in September 2034, is subject to five-yearly upward only rent reviews linked to CPI subject to a cap of 4% and a collar of 2% per annum.
The property is in an affluent commuter zone and residential location, a convenient distance from Tring railway station which provides quick links to central London with excellent road connectivity.
