A health club business backed by a combination of Irish businessmen and former tennis stars is to invest €23 million in a London property.
Health club chain Next Generation announced yesterday that it has agreed to buy the Harbour Club in the London borough of Chelsea from its current owner, Cannons, for £16.1 million (€22.8 million).
The Harbour Club is close to Chelsea Harbour and has 6,800 members. Last year, it had profits before interest, tax and write-offs of £2.4 million.
Brewer and leisure operator Scottish and Newcastle is Next Generation's biggest shareholder. Its other backers include former tennis international players Ms Billie Jean King, Mr John Lloyd and Mr John Fitzgerald.
Former Kerry Group boss Mr Denis Brosnan chairs the company and is also an investor, as are Mr John Magnier and Mr JP McManus who own 28.9 per cent of Manchester United.
Next Generation said that it has negotiated a £104 million credit facility from a syndicate of institutions led by Bank of Scotland, and including AIB, Bank of Ireland and HBOS. It will replace an existing £90 million facility and fund development of five new sites in Britain for which the company has planning permission.
Last month, it opened Europe's biggest fitness centre in Hertfordshire in the English home counties. It plans to open another in Romford, in London's commuter belt in May. Including Chelsea, it will have 13 clubs in operation.
