Coffer Corporate Leisure has advised David Lloyd on the forward commitment of the recently completed David Lloyd club in Rugby for an undisclosed sum to South Yorkshire Pension Authority, under the management of abrdn. The property has a site area of approximately five acres (two hectares) and a gross internal floor area of c.62,592 sq ft (5,815 sq m). Savills acted for abrdn.

David Lloyd is the leading premium health fitness and wellness club group in Europe with 132 clubs and a resilient operating model.

David Lloyd Rugby is situated in the new ‘Houlton’ residential scheme on Houlton Way, fronting the A428 (Crick Road), which is the main road into Rugby town centre from Junction 18 M1 to the east. It has good accessibility to an existing catchment area, as well as the substantial new housing growth and proximity to the M1 motorway. Rugby is the fastest growing town in the West Midlands with a population of more than 80,000.

Mark Sheehan, Managing Director of Coffer Corporate Leisure, says: “This sale follows yet another successful disposal for David Lloyd in 2023, with appetite still prevalent for defensive, long-income assets, particularly where leases provide for built in growth throughout the term. David Lloyd’s resilient operating model and strong customer growth mean they are viewed as ‘best in class’ in the sector and ensured they remain an attractive proposition for institutional and long-income targeting investors.”

James McLean, Fund Manager of the South Yorkshire Pensions Authority (SYPA), says: “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, says: “This strong trading asset, let to David Lloyd Leisure Limited 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.”