Leisure / Hospitality, Retail
21,000 sq ft
Asset Management, Development, Investment, Planning
A distressed purchase of a long-leasehold interest of a two storey, 21,000 sq ft gym on a site area of 1.70 acres. Nearby to the east were a range of roadside related facilities including a McDonald's, a pub, a hotel and a car dealership. The site itself benefited from significant traffic flows, as well as a significant prominence and visibility, making it suitable for roadside development.
The long-leasehold interest was acquired unconditionally without borrowing, and completed within 5 working days from exchange of contracts. Skilful acquisition was then required for the sublease and freehold interest, allowing development without any legal impediment. This demanded a deep understanding of practical needs and concerns of a site fraught with risk.
An active asset management strategy was attributed, the site refinanced to increase equity IRR, whilst a detailed design and urban analysis on the proposed redevelopment options were undertaken. The site has since generated a significant range of interest for a number of end users including car dealership, petrol filling station, discount food, hotel, pub, fast food and drive-thru. Most recently, an agreement has been signed with Lidl UK GmbH to develop a retail store on a 25-year lease.