British Land sells Virgin health clubs
British Land has sold five Virgin Active health clubs it bought in a portfolio last summer for £33m.
The company has sold the clubs, which it said are the smallest from the portfolio and predominantly based outside the South East, at a net initial yield of 6.5%.
The clubs, in Gloucester, Neath, Manchester, Oxford and Poole, have been sold to three institutional investors.
British Land bought the portfolio of 17 racquet clubs from Societe Generale in July last year for £179m, representing a net initial yield of 7.3% and a net equivalent yield of 8.4%.
It now has a portfolio of 12 racquet clubs of which over 85% by value are located in the South East and over 50% within the M25.
Charles Maudsley, head of retail for British Land, said: “I am pleased with the level of institutional demand we have seen for these assets.
“This reflects the high quality of the assets and demonstrates our ability to work successfully with banks and other sellers to unlock opportunities and create incremental value for our shareholders.”
Two of the Virgin health clubs, in Poole and Gloucester, have been bought by Colliers Capital. The clubs were bought for £10.38m, reflecting a net initial yield of 6.2%.
Lewis & Partners acted for British Land. Colliers International acted for Colliers Capital.