Esporta Pursuing £300 Million Sale Leaseback of UK Racket Clubs

The Sunday Times - June 25, 2006

The upmarket health-clubs company Esporta is in talks to sell its freehold property assets for more than £300m. The group is believed to have received a number of unsolicited approaches about a possible sale-and-leaseback of its racket clubs. It has asked its regular adviser Citigroup to handle the inquiries.

The current favourite to clinch a deal is Maple Leaf, the privately owned property vehicle of the Landesberg family, best known for their involvement with Admiral Taverns, a pub company. Other parties thought to be interested in the Esporta clubs include Robert Tchenguiz, the property tycoon, and London & Regional, the real-estate group that recently acquired Esporta’s rival Next Generation.

A sale would also mean that the company’s main backer, the private-equity firm Duke Street Capital, would get back the money it has invested in the business and would leave it owning the operating business, in effect, for free.

The decision to explore a property deal is thought to have been taken after the auction of Next Generation, which raised £200m. Esporta was an under-bidder on that deal and also lost out last week in the sale of The Club Company, owner of a string of golf and country clubs. Sphere: Related Content