David Lloyd Leisure Completes Sale and Leaseback of New Herne Bay Club with Support from Charles Russell Speechlys

European leisure operator David Lloyd Clubs has successfully completed the sale and leaseback of its newly opened Herne Bay health and wellness club as part of its ongoing expansion strategy. The transaction involved the sale of the site to St. Johns High Income Property Fund and a new 30-year lease agreement with indexation for David Lloyd Leisure.

The Herne Bay club, which opened on 2 December, spans 66,370 sq ft and features premium, family-friendly facilities including indoor and outdoor swimming pools, indoor tennis and padel courts, and a Spa Retreat. Located in Altria Park, opposite a major residential development and Sainsbury’s, the club has already attracted over 3,100 members, reinforcing David Lloyd’s commitment to delivering premium fitness and wellness experiences.

Mark White, Partner, Real Estate, Charles Russell Speechlys:

"We’re pleased to have supported David Lloyd Clubs on both the acquisition and the subsequent sale and leaseback at Herne Bay. Structuring a long, index‑linked lease against a best‑in‑class, operational leisure asset reflects strong investor demand for high‑quality income and underlines the strength of David Lloyd Clubs’ operating platform. This was a genuinely multi‑disciplinary effort across our Real Estate, Planning, Construction and Tax teams, working at pace to deliver a successful outcome for all parties."

Brendan Mitchell, Head of Property Investment at David Lloyd Clubs, commented:

The sale and leaseback of David Lloyd Herne Bay is a strategic move that allows us to unlock value while continuing to deliver the exceptional health, fitness, and wellness experience our members expect. This agreement reinforces our long-term growth strategy. Thank you to the cross-practice team at Charles Russell Speechlys for all their continued support.

Charles Russell Speechlys advised David Lloyd Clubs on both the acquisition of the site and the subsequent sale and leaseback. The transaction was led by the Firm’s Real Estate team, including Mark White (Partner), Lynsey Inglis (Senior Associate), and Nicholas Wyatt (Associate), alongside the Construction team of Fiona Edmond (Partner) and Joseph Bearman (Associate) and Sadie Pitman (Associate) from the Firm’s Planning team. The Firm’s Tax team, comprising Elizabeth Hughes (Tax Counsel) and James Stewart (Partner), also provided critical input and strategic advice to ensure the success of the deal.

This collaboration highlights Charles Russell Speechlys’ expertise in delivering complex, high-value transactions in the leisure and property sectors.