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L&R reveals plans for Next Generation
Following its acquisition of Next Generation Clubs (NGC) last month, property firm London & Regional (L&R) is expected to fund the development of four or five sites in its existing pipeline.
First to open will be Next Generation Leicester at the beginning of July. The £12m, 115,000sq ft (10,700sq m) club will feature six indoor tennis courts, six outdoor tennis courts, three squash courts, a fitness suite, an NG Kids gym, indoor and outdoor swimming pools, a steamroom and sauna and a Celsius spa.
Work is also well underway at a new Swindon club, with sites in Glasgow, Blackpool and Hertford awaiting development. The average spend on each club is around £12m.
L&R agreed to buy the NGC chain for £101.7m in cash – a deal which valued each NGC share at 185p.
The property group won the auction over rival health club operator Esporta, which was knocked out of the auction in March after its offer of about £180m was deemed too low. Initially, UBS set a guide price of £200m.
However, analysts believe that in the future L&R may decide to split off the operating company from the property assets, in which case Esporta could still end up operating the firm.
Under the agreement, MD Scott Lloyd and the rest of the management team will be retained by L&R.
The acquisition, however, does not include the Austalian arm of the Next Generation business, which operates three clubs and is due to open a fourth in Perth next year.