Canary Wharf Ltd has settled with Reebok International Ltd after suing the company for £2.17m over lease guarantees at the Reebok Sports Club London.
Sportsplex (Canary Wharf) Ltd, of which Reebok is a shareholder, leased 92,000 sq ft at 16-19 Canada Place, London E14, for the health and fitness club. The £20m gym facility, which opened on 15 November 2002, was fitted out with state-of-the-art facilities, including a junior Olympic swimming pool, a basketball and volleyball court, and a 13m rock-climbing wall.
After Sportsplex went into voluntary administration in July 2003, it was purchased by private investors.
Canary Wharf subsequently alleged that Reebok had guaranteed £2.17m, equating to around one year’s rent and service charge, under the terms of its lease for the club.
References: EGi Legal News 16/06/04
