Sale and Leaseback of David Lloyd Colchester
September 3, 2019
On behalf of David Lloyd Leisure, Coffer Corporate Leisure, the specialist leisure investment advisers, has completed the sale and leaseback of the David Lloyd Health and Racquets Club in Colchester, Essex.
The purchaser, M&G Real Estate, bought the long leasehold interest of the property for a consideration of £16.78million. The long leasehold interest sold is for the unexpired term of 125 years from 9 November 2015. A new 30-year occupational lease was granted to David Lloyd Leisure, at a commencing rent of £883,00 per annum in additional to the existing ground rent.
The purpose-built leisure club, which opened in October 2016, is situated in the town’s developing Northern Gateway area. The premium facilities include over 56,000 square feet internally with a state-of-the-art gym and spa, tennis courts, group exercise, indoor pool and kids swimming pools, extensive children’s activities and member’s lounge and restaurant, as well as outdoor swimming pool and spa as well as five a side football court. There is also a large dedicated car park. The club’s neighbours include the community football stadium, and plans are in place for a new housing village, cinema with IMAX provision, a dozen restaurants, a hotel and extreme sports facilities. The Essex town is a commuting hub with frequent train services to London Liverpool Street (46 minutes) and London Stratford (40 minutes).
Mark Sheehan, Managing Director of Coffer Corporate Leisure, said: "This was an excellent opportunity to acquire a purpose-built, state-of-the-art facility with the leading operator in the sector as tenant. This investment attracted substantial interest reflecting the strong David Lloyd Leisure covenant providing a long-term income."
M&G Real Estate was advised by Springer Nicolas on this transaction. Coffer Corporate Leisure acted for David Lloyd Leisure.