South Yorkshire Pensions Authority purchases newly completed health and fitness club

James McLean, fund manager of the South Yorkshire Pensions Authority (SYPA), said: “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.”

The purchase comes after earlier this year, SYPA launched a £500 million impact investment portfolio for the region.

The group said the portfolio would focus on long-term local investment within the region, with capital deployed over the next five to ten years.

The portfolio has five elements, comprising housing, local venture capital allocations, local development lending, specialist housing, private equity and private debt investments.

The newly bought 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). Coffer Corporate Leisure acted for the vendor.

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.

Rugby has been described as the fastest growing town in the West Midlands, with a population of more than 80,000.

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.”

In March, SYPA said it plans to focus its future investments on supporting a low carbon economy. The group said it was considering investments including in negative carbon investment solutions.