Virgin Active club sold

BRITISH Land has sold five Virgin Active clubs – including an outlet in Manchester – for £33m.

The company bought 17 Virgin Active clubs from  Societe Generale last year in an £179m deal, but has agreed the sale of five – Manchester, Gloucester, Neath, Oxford and Poole – to institutional buyers at an average net yield of 6.5%.

It said that the clubs sold are the smallest in the Virgin Active portfolio and are largely outside the South East. The Manchester club is a former David Lloyds outlet in Middleton, Greater Manchester.

The remaining 12 venues retained by British Land, meanwhile, are all racquet clubs and more than 85% are within the South East region.

Charles Maudsley, head of retail for British Land, said: “I am pleased with the level of institutional demand we have seen for these assets.

“This reflects the high quality of the assets and demonstrates our ability to work successfully with banks and other sellers to unlock opportunities and create incremental value for our shareholders.”