In a recent development, the South Yorkshire Pensions Authority (SYPA) has acquired the newly established David Lloyd health and fitness club located in Rugby. The exact financial details of the transaction remain undisclosed. The acquisition was facilitated under the guidance of abrdn and with consultation from Savills.

James McLean, the fund manager of SYPA, expressed that the acquisition was appealing due to its potential for long-term indexed income in a sector with robust demand. He emphasized the property’s alignment with ESG (Environmental, Social, and Governance) criteria, which is a pivotal factor for SYPA’s new investments.

Earlier this year, SYPA introduced a £500 million impact investment portfolio aimed at the region. This portfolio is designed to concentrate on enduring local investments, with funds to be utilized over the forthcoming five to ten years. The portfolio encompasses various sectors, including housing, local venture capital, local development lending, specialized housing, and private equity and debt investments.

The David Lloyd facility, spanning approximately five acres, boasts a gross internal area of roughly 62,592 sq ft. The club is strategically located in the Houlton residential scheme, providing easy access to Rugby town center.

George Trimmer, an associate at Savills, highlighted the acquisition’s significance, noting the UK fitness sector’s promising outlook post-Covid-19. He mentioned the increasing prominence of premium operators in regional markets, positioning health and fitness clubs as a formidable contender in the UK’s alternative investment domain.

In alignment with its sustainable vision, SYPA announced in March its intention to channel future investments towards fostering a low carbon economy, exploring avenues like negative carbon investment solutions.