Edinburgh-based property investment specialist SRA Ventures is working closely with the UK’s biggest fitness chain after acquiring PureGym Stirling in a £1.4m deal that is set to further enhance its commercial interests in the area.
Missives for the substantial 22,000 square foot Upper Craigs property were concluded last week and SRA Ventures will lease it to PureGym until November 2030 at an initial rent of £115,000 per annum.
Known locally as the former Riley’s Pool & Snooker Club, the well-known building in the heart of Stirling is a significant addition to the SRA portfolio.
The move follows the investment specialist’s £600,000 purchase of a two-storey retail property in Port Street in April, currently let to ‘The Works’ nationwide chain.
SRA Ventures – founded and owned by Scots entrepreneur Shaf Rasul – believes that Stirling represents an excellent platform for growth after being named the best city in Scotland to start a new business in a recent study, while offering great connectivity at a highly competitive cost.
Mr Rasul said: “As the leading provider of 24/7 gym facilities, PureGym is a fantastic chain to work with and we have great belief in its future following a period of rapid expansion since 2008. It’s no coincidence that PureGym is now the UK’s largest operator of its kind with 169 premises and 820,000 members on its books.
“While Brexit has seen the business curtail plans to raise £190m from listing on the stock exchange, we are confident that it retains a recession-proof business model that will continue to flourish.
“We are equally confident that it will prove to be an exceptional tenant for SRA Ventures over the years to come thanks to a close, mutually beneficial relationship that offers top leisure facilities to local people.”
SRA Ventures owns and manages a diverse range of industrial, retail, commercial and mixed use asset properties across Scotland, focusing on under-performing commercial assets.
It was advised on the acquisition by chartered surveyor Graham + Sibbald, which has worked in tandem with SRA on several recent deals.
Partner at Graham + Sibbald, Keith Watters said: “We are delighted to have been part of this high-profile acquisition, and are certain that SRA Ventures and PureGym will continue to expand side-by-side in the exciting business growth environment that is Stirling.
“We are also actively working with SRA on several other acquisitions and asset management opportunities, and are hopeful that another couple of deals will crystallise before the end of the year.”
Murray Stewart, Head of Real Estate at Edinburgh-based Gilson Gray, said: “As retained legal advisors, we were only too pleased to support SRA Ventures on this major acquisition, helping to progress it to a satisfying conclusion for all parties.
“It is only the latest in a series of instructions that we have advised SRA on and we look forward to concluding several more property investment deals on its behalf in the near future.”