Next Generation acquires Harbour Club

Next Generation has announced that it is to acquire the prestigious Harbour Club from Cannons for £16.1m.

The central London health and fitness club, which is located adjacent to Chelsea Harbour, has some 6,800 members and reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of £2.4m last year.

Next Generation has also secured a new £104m credit facility with a syndicate led by Royal Bank of Scotland and including Allied Irish Bank, Bank of Ireland and HBOS. This replaced a previous £90m syndicate and will be used to fund the future expansion of the brand, said the operator’s chair, Denis Brosnan.

“The new banking syndicate means that managing director Scott Lloyd and his team can accelerate the development of new sites,” said Brosnan.

“With the new clubs in Hatfield and Chelsea, we will have 13 sites up and running. We will open in Romford in May and have a pipeline of five further sites with planning permission. It is good to see that the banks have confidence in our ability to develop a portfolio of clubs of the highest calibre.”

The acquisition of the Harbour Club follows the launch of the company’s largest racquets and fitness centre last month. The 65,000sq ft facility in Hatfield includes bedroom and conference suites as well as a children’s gym.