Council buys Nottingham leisure unit

Published:  10 January, 2017

Salmon Harvester takes profit on DW Sports unit

Salmon Harvester Opportunity Fund has sold the freehold investment of a DW Sports unit at Victoria retail park Netherfield, Nottingham, to Nottingham City Council. The council purchased the 45,350- sq ft unit for £9.6m, at a net initial yield of 6.18 per cent. Salmon bought the unit for £6.6m in 2013.

David Whelan Sports signed a 25-year lease in 2008 for the unit four miles north east of Nottingham city centre. The lease incorporates five-yearly fixed reviews equivalent to 2.5 per cent pa. The next review in 2018 will see the rent rise to £633,633 pa reflecting £13.97 per sq ft overall.

The unit comprises a ground floor health and fitness centre, above which is a retail sales unit. It sits within a retail cluster that fronts the A612 dual carriageway alongside a range of other retailers including B&Q, Argos and Next. With a low site cover of around 25 per cent, there are opportunities for future development or expansion.

Fund manager Matthew Meaden said: “We were asking for offers in excess of £9m and are delighted with the price. Our fund is performing very strongly and this is the second sale this year which has produced returns in excess of 20 per cent pa for our investors.”

Salmon Harvester was represented by HSM.

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