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Rare golf course investment sold by Strutt & Parker

7.55am 7th November 2007 - Property

Strutt & Parker Leisure & Hotels Department have sold the freehold of Seckford Golf Course, near Ipswich. The golf course is let to Golf GB Ltd who continue to operate the golf business. The lease has 27 years to run with an option for the tenant to renew for a further 50 years. The current rent is £28,927 and RPI linked.

Charles Greville-Heygate, FRICS, the partner handling the sale said “it is highly unusual for a freehold of a golf course, subject to a lease, to be offered for sale on the open market. There have been less than a handful over the last 20 years.

“This was a comfortable package size which appealed to a wide range of investors, including individuals, those wanting to buy in a SIPP and property investors and we received strong interest and a large number of bids. We were hoping to achieve a yield of 5% but the strength of the market was such that the final price paid was sub 5%.

“With the current uncertainty in the commercial investment market, investors are looking for other interesting opportunities. There therefore seems to be an opportunity for other owners of freehold golf courses subject to a lease to consider selling their freehold now.”

Strutt & Parker www.struttandparker.com

       

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