NORTHAMPTON chartered surveyors Punch Retail & Leisure acted on the purchase of a 120,000 square foot multi-let leisure property investment for £16.75m backed by USA fund Revcap in one of the UK’s biggest leisure investment deals post Brexit.
The landmark leisure property is in a prime strategic location linking a 1.7 million square foot shopping centre in Milton Keynes with X Leisure’s real snow X Scape. The late 90s property was identified by Punch as being an outstanding opportunity to build value by re-positioning the asset away from 90s late bars and clubs to focus on the burgeoning family leisure sector which continues to enjoy rapid growth.
Director Patrick Punch said: “In our view the leisure property investment sector is more attractive than town centre retail because unlike retailing it is unaffected by the impact of online retailing. Consumer spending has transformed over the past five to 10 years with shopping switching increasingly to online purchasing whereas consumer spend on leisure and eating out has increased. This makes leisure sector tenants compete to get space in quality leisure schemes like this one which in turn drives rental growth so making investing in leisure property potentially very attractive and we identified this asset as an exciting buying opportunity for clients of our firm to increase their exposure to leisure property and share in the exciting growth of the leisure sector.
“From a commercial property perspective we see the fundamentals of this particular asset as being particularly robust with a prime location linking a big John Lewis and a highly successful real snow anchored leisure scheme. In addition the asset is anchored by a 1,400-seat theatre and new arthouse cinema and art gallery.
“There is also an expansion of soft leisure uses where families and friends can spend time together and enjoy a range of leisure activities which drives business for the restaurants. So we see leisure as a stand out sector for growth for investors and are working on procuring other quality opportunities like this one.”
Punch have been leasing agents on the scheme since 2009 and negotiated the previous sale of the property when it was sold in 2011 by Deutsche Bank to a private investor and have been instrumental in the private investor realising a healthy profit on their investment.
The asset is currently undergoing a £2M refurbishment that will include a reboot as Twelfth Street along with very extensive improvements to the outside areas including resurfacing of all the outside areas, extensive new signage and up-lighting of the buildings, 20 foot screen for outside events in the main square at the heart of the scheme and an ongoing program of re-positioning the asset to focus much more on family leisure friendly uses to drive footfall for the restaurants and food-led bars.
For full details can be obtained from Patrick Punch Retail & Leisure on 01604 601800 or email