News & insight

Gloucester ground rent investment sold in £1.3million deal

Marketing / 13 Feb, 17

Our investment agency team has sold a ground rent investment on the site of the Ibis Hotel in Sawmills End, Gloucester.

Acting on behalf of Litfield Land, the investment was sold to a private investor for £1.3m.

The site is let to Ibis Gloucester Ltd on a125 year lease from October 2009 (118 years remaining) at a rent of £39,750 per annum. The rent rises annually in line with RPI, capped at 4%.

David Ferris, investment agency Partner in our Bristol office said “We are pleased to have completed the sale of this ground rent investment in excess of the asking price of £1.2m. The price we achieved reflected a strong net initial yield of 2.86% but with inflation set to rise post Brexit the property offered the buyer strong potential for rental performance”.

Topics: News

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