Alternative Income REIT has bought a beauty school in rural Hertfordshire.
The REIT has bought Champneys Beauty School, part of the Champneys Tring Spa Resort in Wigginton, Tring, for £2.5m – a 6.5% net initial yield.
The property has has been acquired with a weighted unexpired lease term of 14.9 years. The lease, 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.
Champneys has occupied the property since 1976 and has used it either for staff accommodation or training purposes. The building has 5,855 sq ft of treatment and training rooms, together with a large car park on a 1.75-acre site. It has previously been granted planning consent for change of use to residential.
Alternative Income REIT said the deal reinvested the remainder of the net proceeds from the group’s last property disposal.
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