South Yorkshire Pensions Authority (SYPA) has bought the recently completed David Lloyd health and fitness club in Rugby for an undisclosed price.
The club occupies a circa five acre site and has a gross internal floor area of circa 62,592 sq ft.
James McLean, fund manager of the SYPA, which is under the management of abrdn, said: “The asset was attractive to SYPA given that it provides long let indexed income in an area of the market we believe has strong underlying demand. The property provides ESG characteristics which is a major consideration for any new SYPA acquisitions.”
George Trimmer, associate in Savills investment team, which advised SYPA, added: “This strong trading asset, let to David Lloyd Leisure for 30 years with indexation, is a fantastic acquisition for our client. Following a quick bounce back post-Covid-19, the outlook for the UK’s fitness sector looks bright, supported by positive market trends and the growing strength of premium operators in regional markets. Consequently, health and fitness clubs occupy a strong position in the UK’s alternative investment market.”
Coffer Corporate Leisure acted for the vendor.
