Legal & General Propertyís Leisure Fund has bought Merthyr Leisure Village, Merthyr Tydfil, Wales, from Atlantic Properties for £15m, reflecting a net initial yield of 6.45 per cent.
The 62,000 sq ft of modern leisure space includes a nine-screen multiplex Vue Cinema, a Travelodge Hotel, a bowling centre and five restaurants, let to McDonalds, Nandos, Frankie & Bennies and Mitchells & Butler. The asset generates a total annual rent of around £1.1m from nine occupational leases, with a long weighted average unexpired lease term of 15 years.As part of the deal, Superbowl has signed a new 25-year lease on newly refurbished space.
Located just outside Merthyr Tydfil, Merthyr Leisure Village is the dominant leisure scheme within the region, with strong occupational demand, and has a prominent location off the A470 which connects Cardiff to the Valleys.
Fund manager Andrew Ferguson said: ďThis acquisition is in line with the Fundís strategy to acquire assets that offer strong income fundamentals through good covenants, while providing attractive rental growth potential.
Knight Frank advised LGP, while Gerald Eve advised the vendor.