Real estate investment trust British Land (BLND.L) has acquired 17 Virgin Active Premium Racket Club Properties in a deal worth £179 million

The freehold and leasehold property portfolio - sold by Societe Generale - will be let on new 25-year leases to Virgin Active.

According to British Land, the properties - predomininantly located in the South East of England - will generate an initial annual net rental income of £13 million.

However, the deal is conditional on the acquisition of the Esporta chain by Virgin Active gaining Office of Fair Trading approval.

Chris Grigg, chief executive of British Land, said, 'While we remain focused on our core retail and Central London office markets, this acquisition demonstrates British Land's ability to work with banks to unlock opportunities to create incremental value.

'These high quality assets will be operated by a strong, established management team and provide us with a secure and growing income stream.'

He added, 'The acquisition further underlines the strength of our property, structuring and financing skills and we expect more opportunities will continue to emerge in the coming year.'

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