Growth in Leisure Investment Market
Graham + Sibbald have recently been instructed to sell an increasing about of leisure investments and indeed are retained by an investor to find more. This is a growing market where the right investment will provide a high yield return for an investor who is willing to purchase the heritable interest in a property with a sitting tenant.
Whilst returns on investment remain within sensible levels at around 8-15% which offers a substantially better return that one could find for interest on cash and significantly better than LIBOR (currently around 0.93%).
Income streams are somewhat more diverse than just rent, with some leases reducing rental levels by taking a split of the machine income and or tie-ing the tenant to a particular supplier and enjoying income from the barrelage of the unit. Whilst these income streams are generally treated at a much higher yield they can offer a Landlord a significant uplift in the rent.
We have completed the sale of The Mormond Inn in Strichen, and the Inn at Kippen recently, we have 2 other investments under offer with conclusion of missives imminently and have interest in 2 other pub/restaurants we have just brought to market.
It seems that there is real appetite for small lot sized investments from across the UK, and overseas and that Brexit and other political issues are not yet affecting purchasers interested in investing in Scotland.
For more information on leisure investments we are marketing please go to http://licensed.g-s.co.uk/properties
Date: 15th June 2018Back to blog