M&G Investments has agreed a £350m deal with David Lloyd Leisure for the sale and lease back of 44 of its health clubs.
David Lloyd will take 125-year leases on the health and racquet clubs around the UK.
The investment is on behalf of the £3bn M&G Secured Property Income Fund. The deal has completed on 32 of the clubs with the rest expected to complete shortly.
Ben Jones, manager of the M&G Secured Property Income Fund, says: “Many defined-benefit pension schemes are actively seeking cash-generating assets in order to pay pensions. Long-lease property investments such as this provide attractive cash flows that are inflation protected and contracted over the long term.
“This has led to over £750m of further capital being committed to the fund in 2015 from both new and existing clients.”
CBRE were advisers to M&G Real Estate.
