British Land makes packet from Virgin racquet clubs sale
British Land, the FTSE 100 real estate investment trust, is to reduce its exposure to the health club racket with the sale of five of clubs in the Virgin Active estate.
British Land, the FTSE 100 real estate investment trust, is to reduce its exposure to the health club racket with the sale of five of clubs in the Virgin Active estate.
The sale price of £33m to three institutional buyers represents an average net initial yield of 6.5%.
British Land first became involved with the Virgin Active portfolio in July last year, paying Societe Generale £179m for 17 outlets.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The clubs it has sold are located in in Gloucester, Neath, Manchester, Oxford and Poole and are among the smallest in the portfolio and with the exception of Oxford, are located outside the South East.
The company now holds a core portfolio of 12 premium racquet clubs of which over 85% (by value) are located in the South-east and over 50% within the M25, giving a fairly clear idea where British Land's strategic priorities lie.
Charles Maudsley, Head of Retail for British Land, said of the deal: "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."
British Land shares have risen 5% so far in 2012.
BS
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%
Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the US
Medium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.