At Savills commercial auction, held in London last week, Open Golf Centre, Beggars Lane, Kirby Muxloe, Leicestershire was sold for £730,000.
Offered on behalf of Open Golf Centres Limited (in administrative receivership) the property comprises a leasehold nine-hole golf course and health club investment. The property was sold subject to vacant possession on the 40-acre golf course, and the health club is let to Fitness First for a term of 25 years from 2004 at a current rent of £74,135 pa. The ground rent payable is £22,670 pa, which rises annually. The property was sold to the freeholder for £730,000 reflecting a net initial yield of 6.67%.
Savills commercial auction, held at The Langham Hotel on 24th October 2005, raised over £29 million with an overall success rate of 76%, exceeding the total realised at its last commercial auction in July of £21.6 million.
James Cannon, Savills’ head of commercial auctions, comments, “We were delighted at the large amount of people who attended the auction, in particular a significant number of Irish investors were present. One private investor from Norfolk snapped up over £14 million of property, which he is putting into a pension fund. The market remains strong for good long-term income and, investment and development opportunities where purchasers perceive they can add value.”