LA Fitness has completed a sale & leaseback of four clubs, in Birmingham’s Northfields district, Sutton Coldfield, Sale in Greater Manchester and Kings Lynn in Norfolk.
The £8.2m deal comprises a 35-year lease, with a total rent of £693,297 pa, at each club. The rent is set to increase by 2.5% pa over the first 15 years.
LA Fitness plans to use the proceeds of this deal to fund its expansion programme.
The health & fitness club-owner does not expect to report a profit or loss on these disposals in its results for the current financial year.
EGi News 05/02/02
