Related Takes Equinox for $505M

NEW YORK CITY-The Related Cos. acquires the 32-unit fitness-club chain Equinox from parent company Equinox Holdings Inc. for about $505 million. Though the fitness outfit has locations across the country, Equinox’s flagship 40,000-sf club and its “E”, a 6,000-sf invitation-only training facility, are at located here at Related’s Time Warner Center.

Harvey Spevak will continue to lead Equinox as CEO and president and the current Equinox management team will remain intact. According to a source, these are not Related’s sole fitness-type holdings. The duo already has an Upper West Side condominium project in the works where Equinox will operate a new 35,000-sf club. Equinox offers an integrated selection of programs, services and products, including strength and cardio training, group fitness classes, personal training, spa services and products, apparel and food/juice bars.

Related officials says they secure a well known brand as a quality anchor tenant for key current and future developments, while Equinox will leverage Related’s real estate expertise and relationships to more efficiently secure sites, reducing its site identification and club development costs. Related oversees a portfolio valued in excess of $15 billion.

“We see natural synergies as a result of our partnership and are looking forward to creating new products to benefit our customers,” says Jeff T. Blau, president of Related. Since 2000, Equinox has opened 21 new clubs in four new markets and more than doubled its membership. Revenues have grown from $63 million in 2000 to $168 million for the 12-month period ended September of 2005. Related was represented by Merrill Lynch and Paul Hastings.

Last month, a subsidiary of Millennium Partners signed a binding asset purchase agreement with the Sports Club Co. Inc. for seven of the company’s sports clubs. The purchase price was $65 million.