A private investor has acquired a brand new Snap Fitness 24-hour gym at 12/1 Hunt Way, Pakenham in Melbourne’s southeast at auction for $2.585 million.

The sale price reflected a yield of 6.6%.

Located on the upper level of a recently-completed neighbourhood retail complex, the 551-square-metre premises is secured by a new 10-year lease with a net annual rental of $170,500.

Burgess Rawson’s Shaun Venables, Zomart He, Justin Kramersh and Romanor Falconer brokered the deal.

Having sold a number of health and fitness assets in the past twelve months, Mr Venables said that investors have accepted that the 24/7 gym model is the way forward for many of the chains as they are able to operate largely unmanned, with large membership numbers and low overheads.