PRoPeRty


Confusion in the UK fitness market


PeteR moody is partner and head of leisure and hospitality at Brook Street des Roches LLP and a LPF committee member


I


t’s hardly surprising that, when some- one receives a 144-page document, it takes a little digesting. And as a legal document, the contents are bound to


be somewhat confusing. So it was in early June when Fitness First issued its Company Voluntary Arrangement (CVA) proposal. Te purpose of a CVA is to allow a com-


pany to avoid liquidation by reaching an informal but binding agreement with its unsecured creditors, usually involving rescheduling and reduction of debts. Fitness First’s creditors include numerous


landlords, at whom the proposal was aimed; to assist it in divesting rental and other lia- bilities on less well performing and non-core units – a blow to those who had previously seen the operator as a strong tenant. With more than 60 per cent of landlords


affected to a greater or lesser (mostly greater) extent, a ripple of anxiety went through the marketplace – particularly when landlords realised Fitness First’s intention was to divest itself of 60+ sites within six months. Despite an attempt to galvanise landlords to vote against the proposal, it was duly passed. What could not easily have been predicted


was the amount of confusion caused by the CVA and its effect on Fitness First, its land- lords, other operators, and even on some of Fitness First’s sub tenants. Seeing some land- lords distrain for rent, despite a moratorium imposed by the CVA, gave the impression that 144 pages was too much to read and, even if they had, no-one had advised on the effect. Fitness First looked to offload sites to budget operators keen to snap up the cream but it quickly became clear that operators were better off going direct to landlords. With the CVA approved, landlords were


able to control the identity of fresh tenants. Some were even keen to market sites with sub tenants in occupation. What resulted is a frenzy of activity and time wasted by land- lords and operators in a squabble over which sites are available and on what terms. In short, confusion. But, on reflection,


how much more calm and effective the activity would be with more attention to the detail of the scheme, and, dare I say it, some more focussed legal advice.


12 2012 RIBA Stirling Prize shortlist revealed


London’s “seemingly sim- ple, yet highly innovative” Olympic Stadium has been named as one of six buildings across the UK shortlisted for the 2012 RIBA Stirling Prize. Te stadium – currently the


centrepiece of the Olympic and Paralympic Games – was designed by Populous and was completed in March 2011. It forms part of a shortlist


that also includes Belfast’s Lyric Teatre and Hepworth Wakefield in West Yorkshire and has already picked up a RIBA Award this year. Dublin, Ireland-based


Te Olympic Stadium is one of six shortlisted for the RIBA Stirling Prize


O’Donnell + Tuomey were the firm responsi- ble for the “craſted and careful reincarnation” of the theatre on a suburban site in the heart of the Northern Ireland capital.


Meanwhile, David Chipperfield Architects


oversaw the design of the “stunningly original” contemporary art attraction in Wakefield. Details: http://lei.sr?a=x8N8P


Olympic Park proposals submitted


Plans for the new South Plaza within the post-Games Queen Elizabeth Olympic Park have been submitted by the London Legacy Development Corporation (LLDC). The landscaped public


realm at the heart of the South Park has been designed to establish a major new enter- tainment and activity hub for Londoners and visitors. James Corner Field


Operations – the firm behind New York’s High Line, US – have drawn up designs for the South Plaza, which will feature a 12m (39ſt)- wide tree-lined promenade. Te site is framed by the Aquatics Centre,


Te new-look South Plaza area is set to open to the public in spring 2014


pavilion overlooking the park. It is hoped the South Park will open in spring 2014. To read more about the transformation of


the Olympic Stadium and the ArcelorMittal Orbit viewing tower attraction, with plans also including a series of outdoor “rooms”. A park hub next to the ArcelorMittal Orbit will feature a café, a box office and a rooſtop


High Line in New York, US, from a disused 1930s rail structure into a modern, ecologically- friendly city park, see Leisure Management 2012 Issue 1, p32: http://lei.sr?a=X4K4o Details: http://lei.sr?a=F6K2H


RJ McLeod awarded Helix public realm contract


RJ McLeod has been awarded the public realm construction contract worth £8.5m as part of the £41m Helix regeneration project between Falkirk and Grangemouth in Scotland. Te public realm elements include the revi- talisation of 100 acres (40 hectares) of vacant


Read Leisure Opportunities online: www.leisureopportunities.co.uk/digital


land into an innovative ‘people park’ and the creation of a canal hub with visitor facilities. Andy Scott’s Kelpies – two 30m (98ſt)-high


stainless steel-plated horses’ heads – are to form part of the canal hub. Read more: http://lei.sr?a=g9I6k


Twitter: @leisureopps © CYBERTREK 2012


image: populous/oda


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