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Craigard syndicate acquires Nuffield Health’s Cheam Fitness & Wellbeing Gym

Well-run gyms can offer investors good-quality long-term income at an attractive yield in these challenging times, reports commercial property investments specialist Craigard.

A Craigard syndicate has just acquired a Nuffield Health Fitness & Wellbeing Gym in Cheam, a highly affluent and sought-after area of London.

The syndicate purchased a long leasehold interest in the wider Cheam Sports Club grounds, a key facility in the local community.

This prime health and fitness centre comprises 21,863 sq ft (2,031 sq m) over two floors. Facilities include a swimming pool, gym and studios, café and a crèche. The tenant has a right to 185 car parking spaces.

The property is let to Nuffield Health on a 35-year lease (12 years unexpired) without break. It is underpinned by a strong covenant and rent security.

The next rent review will be in November 2026, resulting in a rent increase and a further improvement in the level of return for Craigard investors.

Nuffield Health is the UK’s largest not-for-profit healthcare provider. It is a charity that operates not by fundraising but by trading, investing all its income into its purpose of building a healthier nation.

Craigard Managing Director David Foster said: “This investment provides a low-risk defensive income-based opportunity with an attractive return profile.

“It is a promising investment profile to target at present, given the wider economic and geopolitical uncertainty.

“Investors will see a nice income return for the foreseeable future, with a small element of value add through extending the headlease at some point.

“We’re delighted to have secured this acquisition in a sought-after location and a strong market sector with many people placing a higher focus on wellbeing and fitness. We’re confident it will perform well over the coming years,” he added.

The property had been marketed by Alternative Real Estate Advisors (AREA), central London. DTRE and Druces LLP acted for Craigard.

Hampshire-based Craigard specialises in creating higher-yield commercial property investment opportunities for syndicates typically comprising around 10-15 high-net-worth investors.

The company uses its extensive experience and careful analysis of the commercial property market to identify innovative investment opportunities. It always co-invests.

Craigard specialises in value-add commercial property opportunities across all the main sectors.

Its experienced team carries out the day-to-day work involved, removing the typical hands-on property management for syndicate investors.

The company is currently working on a series of commercial property syndication opportunities. For further information, please contact Craigard.