Commercial property consultancy Sanderson Weatherall 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 a 125 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 at Sanderson Weatherall 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”.
