Gregory Property Group has secured a forward sale of its hotel and gym development in Harrogate town centre. An unnamed offshore trust has bought the leisure asset on Tower Street based on an initial yield of 7%.
Leeds based Gregory bought the former bowling alley in 2011 and secured planning approval to redevelop the site in February 2013. It had already secured a 25 year lease with Travelodge to operate a 70 bed hotel. It had also agreed a 15 year lease with Pure Gym to take 16,900 sq. ft on the ground floor and basement. The scheme was fully let in advance of construction and demolition works have just started. Completion is expected in one year.
Richard Tovey at Gregory Property Group, said: The former bowling alley had been vacant for a number of years and had become rather an eyesore in the town centre.
It took a lot of effort to secure planning approval due to conservation area sensitivities but our proposal will be a successful example of how a disused and redundant site can be transformed to deliver much needed facilities for the local community.
There is no other low cost gym of any size operating in the town and Travelodge is expanding its bed space as a result of demand.