July 8 (Bloomberg) -- British Land Co., the U.K.’s second- largest real estate investment trust, bought 17 properties occupied by Virgin Active health clubs from Societe Generale SA for 179 million pounds ($286 million).
Virgin Active will take out new, 25-year leases on the properties pending its purchase of smaller competitor Esporta Plc, London-based British Land said today in a statement. The developer will gain annual rental income of 13 million pounds.
“This acquisition demonstrates British Land’s ability to work with banks to unlock opportunities to create incremental value,” Chief Executive Officer Chris Grigg said in the statement. “We expect more opportunities will continue to emerge in the coming year.”
The purchase brings British Land’s spending in the past 18 months to 784 million pounds, generating additional rental income of 46 million pounds a year, the company said.
--Editors: Andrew Blackman, Jerrold Colten.
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