Abrdn has bought the David Lloyd health and fitness club in Bury St Edmunds on behalf of a client in a sale and leaseback deal.
David Lloyd Leisure has agreed a new 30-year lease term on the circa 64,045 sq ft club, which is due to open next month.
The club benefits from a dedicated car park and state-of-the-art facilities, including padel tennis courts, and indoor and outdoor swimming pools and spa.
Stuart Caswell, new clubs acquisitions director at David Lloyd Clubs, said: “We’re thrilled to complete the forward commitment of our new club in Bury St Edmunds, which opens next month. Positioned in Marham Park, the club represents a fantastic addition to our portfolio, ideally placed to serve a growing community with high demand for premium health and wellness facilities. We look forward to welcoming our new members and continuing our strong momentum into 2025.”
George Trimmer, associate in the investment team at Savills, which acted for abrdn on the deal, added: “The UK health and fitness market is continuing to thrive; it’s reported to be valued at approximately £5bn and David Lloyd is the leading operator within this sector. This defensive, long-income product is unique particularly with its 30-year lease let to David Lloyd Leisure Limited and annual indexation.
“The latest David Lloyd results are exceptional and we expect Bury St Edmunds to surpass its trading predictions and follow in a similar light. The sector’s resilience is being driven by increasing health consciousness and the adoption of wellness-oriented lifestyles which firmly cements this asset as a desirable alternative long-term investment.”
Mark Sheehan, director at Portland Leisure Advisers, which represented David Lloyd on the deal, said: “We’re delighted to have completed this forward commitment transaction on behalf of David Lloyd. The club exemplifies the resilience and attractiveness of high-quality, long-income investments within the health and fitness sector. Investors continue to show great interest in these assets, which offer both stability and growth in today’s market.”
