The Office of Fair Trading (OFT) in the UK is to consider whether the proposed merger of the David Lloyd Health and Racquet Club portfolio with Next Generation Clubs should be referred to the Competition Commission. The regulator has invited comment on the acquisition of the David Lloyd business by London & Regional Properties (L&R) and Bank of Scotland Corporate for £930 mln (EUR 1.4bn) last June. The transaction reflected a yield of 8%.
The Office of Fair Trading (OFT) in the UK is to consider whether the proposed merger of the David Lloyd Health and Racquet Club portfolio with Next Generation Clubs should be referred to the Competition Commission. The regulator has invited comment on the acquisition of the David Lloyd business by London & Regional Properties (L&R) and Bank of Scotland Corporate for £930 mln (EUR 1.4bn) last June. The transaction reflected a yield of 8%.
The David Lloyd portfolio consists of 71 freehold and long leasehold properties located throughout the UK, Ireland, the Netherlands, Belgium and Spain. Philip Johnston, director at Savills, which advised L&R, said: 'With a range of high quality clubs located throughout Europe, the David Lloyd portfolio will generate significant value for L&R and is an ideal reunion with the Next Generation clubs. Furthermore, it demonstrates the growing confidence in the health club sector from discerning investors.'
L&R and HBOS, parent of Bank of Scotland Corporate, plan to merge the David Lloyd Clubs with Next Generation to create a major health and fitness business in the UK.
