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05.06.2007

London & Regional Properties and Bank of Scotland acquire David Lloyd Leisure Ltd

London & Regional Properties and Bank of Scotland acquire David Lloyd Leisure Ltd

London & Regional Properties and Bank of Scotland Corporate, acting in partnership, today announced the £925 million acquisition of David Lloyd Leisure Ltd from Whitbread Plc. In what was a highly competitive sale process for one of the UK's premiere leisure assets, London & Regional Properties and Bank of Scotland Corporate have worked closely together to deliver the most attractive offer to Whitbread Plc, beating interest from a number of trade and financial buyers. The consortium is set to integrate the business with Next Generation Clubs which will create the leading racquets, health and fitness club group in the UK. The combined entity will operate 77 clubs in the UK and a further 10 sites across Europe, with two new clubs due to open later this year. The group provides premium health and fitness services via more than 10,000 exercise machines, over 3,000 exercise classes per week and unrivalled racquets facilities including 600 tennis courts 100 badminton courts and 100 squash courts. David Lloyd Leisure Ltd was founded in 1982, by David Lloyd and sold to Whitbread in 1995, who continued to grow the business by rolling out new sites in the UK and Europe. Next Generation Clubs was founded in 1996 by Scott Lloyd and was acquired by London & Regional Properties in 2006. Both businesses specialise in providing a range of premium health activities, including racquet sports, swimming pools and gyms, with additional services including health and beauty spas, crèche facilities, restaurants and bars. The combined business will be run by the Next Generation Clubs' management team led by current CEO Scott Lloyd. Scott Lloyd, CEO of Next Generation Clubs commented: "This deal combines the two leading brands in racquets, health and fitness, creating a portfolio of family orientated clubs with unrivalled facilities and service levels for our members and provides an excellent platform to take the business into the next stage of its development while reinforcing our clear market leading position."


Chris King, UK Managing Director for London & Regional, said: "This transaction builds on our highly successful acquisition of Next Generation Clubs in 2006 for £198m. We are delighted to have Bank of Scotland Corporate as a partner for the acquisition of David Lloyd, which is the largest ever transaction in the European Health and Fitness sector and we look forward to developing the business together." Andy Powell, who led the team at Bank of Scotland Corporate, said: "We are delighted to be part of this landmark deal for the UK health and leisure industry. This deal represents a fantastic opportunity to consolidate the two pre-eminent racquets, health and fitness clubs in the UK, creating a clear market leader in premium health and fitness. Scott Lloyd and his team have a proven track record of delivering success in this growing sector, and we look forward to working with them." Notes to Editors: Bank of Scotland Corporate, part of HBOS plc, has a reputation for excellence in the provision of corporate finance, delivering innovative funding solutions across a range of markets. Bank of Scotland Corporate employs over 8,300 employees with total lending of £82.4 billion at June 2006. With experience across many areas of corporate finance, including Integrated Finance, Joint Ventures, Structured Finance, Acquisition Finance, Infrastructure Finance and Housing Finance, Bank of Scotland can draw on an expert pool of professionals with proven track records. Since launching its ground-breaking Integrated Finance unit back in 2000, the Bank has transacted over 100 deals with a total funding of around £8 billion. Today Bank of Scotland Integrated Finance provides funding to more mid-market MBOs than any other bank in the UK by providing a unique one-stop financing solution which meets all the funding requirements for a business undergoing a transaction. London & Regional Properties is one of the largest private property companies in Europe with investments, developments and business interests exceeding €8.5 Billion in over 12 countries, including the UK, Scandinavia, Germany, Poland, Russia, South Africa and Panama. L&R's international operations were recognised this year by winning the Property Week "International Property Achievement" award for 2007 L&R employs a team of Investment, Development, Finance and Asset Management specialists that transact business quickly and efficiently and have an outstanding track record for completing international landmark projects and acquisitions.

For further information, contact: Ross Keany, Bank of Scotland Press Office Tel: 0131 243 7195 / 07876 475815

Email: ross_keany@bankofscotland.co.uk

Scott Lloyd, Next Generation Clubs Tel: 01707 283 528 Chris King, London & Regional Properties Tel: 0207 499 4060

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