South Yorkshire Pensions Authority Invests in Brand New Health and Fitness Club

The South Yorkshire Pensions Authority (SYPA) has recently completed a significant acquisition with the purchase of a newly built health and fitness club, which was expertly managed by abrdn and advised by Savills.

James McLean, fund manager of SYPA, has highlighted the appeal of the asset due to its provision of long-term indexed income in a market with strong demand, as well as its environmental, social, and governance (ESG) characteristics, which are crucial considerations for the organization’s new acquisitions.

This acquisition follows SYPA’s recent unveiling of a £500 million impact investment portfolio for the region. This portfolio is focused on long-term local investments within the region, with capital to be allocated over the next five to ten years. It consists of housing, local venture capital allocations, local development lending, specialist housing, private equity, and private debt investments.

The health and fitness club, David Lloyd Rugby, is situated in the new Houlton residential scheme on Houlton Way, facing the A428 (Crick Road), which is the main access road into Rugby town centre from Junction 18 M1 to the east. Rugby has been identified as the fastest-growing town in the West Midlands, with a population of over 80,000.

George Trimmer, associate in Savills’ investment team, has described the acquisition as excellent, with the club being leased to David Lloyd Leisure Limited for 30 years with indexation. He emphasized the positive outlook for the UK’s fitness sector, citing strong market trends and the increasing prominence of premium operators in regional markets. This optimistic outlook places health and fitness clubs in a favorable position within the UK’s alternative investment market.

In March, SYPA announced its intention to direct future investments towards supporting a low carbon economy, considering options such as negative carbon investment solutions. These plans demonstrate the organization’s commitment to sustainable and environmentally conscious investments.

The expertise demonstrated in the purchase of the health and fitness club underscores SYPA’s meticulous approach to investment in the region. The acquisition of such a substantial asset reflects the organization’s strategic focus on sustainable and impactful investments for the long-term benefit of the community. This move solidifies SYPA’s position as a key player in regional investment initiatives, setting a positive precedent for the sustainable development of the South Yorkshire region.