The Board of Directors of Alternative Income REIT PLC is pleased to announce that the Company has completed the acquisition of the Champneys Beauty School, part of the Champneys Tring Spa Resort in Wigginton, Tring for c. €3m (net of acquisition costs to the Company). The price reflects a net initial yield of 6.5% and the Asset has been acquired with a weighted unexpired lease term of 14.9 years. The acquisition reinvests the remainder of the net proceeds from the Group’s last property disposal.
The property is fully let to Champneys Tring Limited (Champneys) which has occupied the property since 1976 and it has been used as either staff accommodation or for training purposes. The building comprises a total of c. 544m2 of treatment and training rooms, together with a large car park on a c. 7,041m2 site. The property has previously been granted planning consent for a change of use to residential use.
The property has a passing rent of c. €208,250 pa until the next rent review, which is due in April 2028. The lease of the Asset, 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. The property is in an affluent commuter zone and residential location, a convenient distance from Tring railway station which provides quick links to central London with excellent road connectivity.
Simon Bennett, Chair of Alternative income REIT plc, commented: “We are pleased to announce the purchase of the Champneys Beauty School near Tring. This training college is in an affluent commuter location and is let on a long lease with index-linked rent reviews. The Board continues to believe firmly that the Group is well positioned, given its diversified and fully let portfolio that delivers secure, long-term and indexed-linked income flow. The Board remains confident that the Company is presently on track to deliver on its target annual dividend of 6.2 pence per share† for the Group’s financial year ending in June 2025.”
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