British Land sells five Virgin Active Health clubs

StockMarketWire.com – British Land has sold five of the Virgin Active premium racquet clubs acquired in July for £33.

British Land says this represents an average net initial yield of 6.5%.

The 17 asset Virgin Active portfolio was acquired from Societe Generale for £179m, at an average net initial yield of 7.3% and a net equivalent yield of 8.4%.

The properties are on 25-year leases with a fixed uplift at year five, followed by annual RPI uplifts of between 1-4% per annum for the remainder of the lease term.

The clubs in Gloucester, Neath, Manchester, Oxford and Poole have been sold to three institutional buyers.

These five clubs are among the smallest in the portfolio and with the exception of Oxford, are located outside the South East.

British Land now holds a core portfolio of 12 premium racquet clubs of which over 85% (by value) are located in the South East and over 50% within the M25.