Major UK REIT British Land is in advanced talks to buy a £175m (EUR 195 mln) portfolio of properties in the UK that are occupied by Virgin Active health and racquet clubs, according to a report in the Financial Times. The vendor of the properties is Société Générale, which took control of them in 2009.

The deal would be expected to offer a yield of about 7.5%, the paper said. Neither British Land nor Société Générale would comment on the report.

The gyms are occupied by Virgin on 25-year leases for £13.1 mln per year. The portfolio comprises 17 long leaseholds and freeholds for the gyms and sports facilities, which are in locations including Oxfordshire, Brighton and Cardiff.

The assets were previously owned by the family trust of property tycoon Simon Halabi, which acquired both the properties and the operating business in 2006 for more than £450 mln. The business went into administration in 2007. Société Générale sold the operating business, but not the properties, to Virgin Active in April this year for £77 mln.