South Yorkshire Pensions Authority (SYPA) has acquired a 62,592sqft property in the West Midlands of England, leased to health and wellness group David Lloyd.
The UK local government pension scheme, under the management of Abrdn and advised by Savills, has bought the recently completed David Lloyd health and fitness club in Rugby for an undisclosed sum.
The property has a site area of approximately five acres and is situated in the new Houlton residential scheme on Houlton Way.
James McLean, fund manager of the SYPA, said: “The asset was attractive to SYPA given that it provides long-term 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, an associate in Savills investment team, said the asset is let to David Lloyd Leisure for 30 years with indexation.
Trimmer added: “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.”
To read the latest edition of the latest IPE Real Assets magazine click here.