European leisure clubs operator David Lloyd Clubs has completed another sale-and-leaseback of one of its health and wellness leisure centres as it continues a significant expansion drive.
The new David Lloyd Club in Herne Bay has been bought by open ended property fund St. Johns High Income Property Fund and leased by David Lloyd Leisure on a new 30-year lease with indexation. Portland Leisure Advisers again advised David Lloyd Clubs while the buyer was advised by Cushman & Wakefield and Cyril Leonard.
The price paid has not been disclosed but it is understood to be in excess of £19 million.
David Lloyd Herne Bay is prominently located in Altria Park, directly opposite a 1,500-home residential development and a 92,500-square-foot Sainsbury’s. The 0-20 minute catchment covers more than 270,000 people, providing a strategically selected location for David Lloyd Clubs.
The 66,370-square-foot luxury club, featuring indoor tennis & padel tennis courts, indoor & outdoor swimming pools and spa retreat, opened on 2 December with over 3,100 members signed up, marking the latest in a run of openings over the past year, including Rugby, Bury St Edmunds and Harlow which is set to open this month.
Mark Sheehan, director at Portland, said in a statement: “David Lloyd Clubs is the best operator in the sector. Herne Bay represents another strong partnership between David Lloyd Clubs and investors seeking assets backed by exceptional operating performance.”
Brendan Mitchell, Head of Property Investment at David Lloyd Clubs, said: “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 commitment to the Herne Bay community.”
David Lloyd Clubs operates 136 clubs in Europe with a record 811,000 members as of August 2025. Portland acts as retained investment adviser to David Lloyd Clubs and will bring several new clubs to market over the next year.
Andy Dickens, Partner at Cushman & Wakefield, said: “We’re delighted to have advised our client on their latest acquisition, providing their investors with exposure to long dated income, indexed reviews and a new state of the art facility."
Richard Bryan, Fund Manager at St. Johns High Income Property Fund, said: “It marks the latest purchase where we have grown our property portfolio by an additional £75 million."
Last month, David Lloyd Clubs secured a forward commitment sale of David Lloyd Harlow, a new purpose-built luxury racquets, health and fitness club at Harlow Innovation Park to clients of Aberdeen, for over £20 million in a transaction revealed by CoStar News.