Life Time Group Holdings, has entered into a non-binding letter of intent for the sale-leaseback of one property in a transaction totaling approximately $45 million in gross proceeds.
The proposed transaction is with an institutional real estate investor that has completed multiple sale-leaseback transactions with Life Time previously. The parties intend for the sale and leaseback of the property to be completed in May 2023. Terms are consistent with the company’s past transactions.
As announced on January 31, 2023, Life Time signed letters of intent for the sale-leaseback of two properties in transactions totaling approximately $78 million. Life Time has closed on the first transaction for $33 Million in gross proceeds, effective March 1, 2023. The transaction for the second property, which currently is under construction, is expected to be completed by September 30, 2023, for approximately $45 million.
The company said in a release that it is well-positioned and remains on track to complete $300 million in sale-leaseback transactions in 2023. Sale-leaseback transaction proceeds will be used by the company to support new growth opportunities and strengthen its balance sheet.
