property


A clear message from investors


CharleS wilford is co-head of the leisure team at Gerald Eve and a member of the LPF


P


olarisation: It has nothing to do with melting icecaps but is a word that has been used with increas- ing frequency since the economic


downturn. When markets are at their most fragile and unpredictable investors under- standably run for cover; the mantra is safety first, minimise risk, go for what you know. Te leisure investment market has experi-


enced a similar gravitational pull, no better demonstrated than experience and activity in the health and fitness market. Most recent activity in this sector has


come from opposite ends of the spectrum, with the rapid expansion of budget gyms on a no frills and no contracts basis as well as, at the upper end, the emergence of bespoke personal training gyms with programmes tailor made to members’ requirements. Investment funds have also woken up to


the attractions of the sector and are prepared to pay handsomely if all “prime boxes” are ticked: covenant, term, growth. Te sector has seen more than its fair share of CVAs and receiverships over the past couple of years – oſten caused by over-leveraged debt structures rather than trading fundamentals that remain reasonably robust. It is perhaps then no surprise to see


investors running for cover, with very little appetite to speculate further money unless all of the following are satisfied: Covenant – cast iron and preferably AAA


rated; Term – 15 years, but the longer the bet- ter; Rental Growth – open market reviews are uncertain. RPI or fixed increases are a must, either annually or five-yearly. In value terms, prime health club


investments that satisfy all the investors’ requirements have recently been changing hands at yields approaching 6 per cent and occasionally keener still, while the loss of guaranteed income growth will quickly see yields move out to more than 7 per cent, fre- quently representing a value differential of 20 per cent and more, relative to prime. From the investment market the mes-


sage is clear: prime remains prime and is very much in demand. But step away from key covenant and rental growth criteria and things can slip away very quickly indeed.


14 £2bn Shard opened


Te Shard, a £2bn mixed-use scheme designed by Renzo Piano, has become one of Europe’s tallest buildings aſter its official launch in cen- tral London on 5 July. A number of dignitaries – such as


HRH Prince Andrew and Qatar Prime Minister His Excellency Sheikh Hamad Bin Jassim Bin Jabor Al Tani – attended the official inaugu- ration event on 5 July. A spectacular laser and lightshow was held


to celebrate the opening of Te Shard, which was designed in conjunction with architect Richard Rogers and towers above the capi- tal’s London Bridge Quarter. Te event marked the completion of the


exterior of the 310m (1,016 ſt)-high building, which houses a public viewing gallery between floors 68 and 72 due to open next year. Shangri-La Hotel at Te Shard, London will


also open next year, with a 6,030sq ſt (560sq m) CHI spa on the 52nd floor. Read more: http://lei.sr?a=L8S6w


Te 310m-tall Shard will change the London skyline Sunesis Leisure concept launched


Scape and Willmott Dixon have launched a new version of their build concept Sunesis for the UK’s leisure industry, following its success across the education sector. Sunesis Leisure – unveiled


at the Local Government Association conference on 26 June – is designed to offer public sector clients a quick procurement route and ready- made design solutions. It is thought the approach


will reduce the overall build programme from inception through to opening by a year, as well as achieving 25 per cent cost savings. As reported by Leisure Opportunities last


Each of the three design options come with swimming and learner pools


month, Sunesis Leisure will allow clients to develop a wide range of facilities - including swimming, fitness, sports and spa areas. Sunesis Leisure offers three designs, which have been created with the help of industry


experts and each contain a swimming pool and learner pool of varying sizes. From there, the design can be customised


with additional facilities such as a health and fitness suite; spa, sauna and therapy options; and a sports hall available. Details: http://lei.sr?a=a5W7p


Brentford FC acquires land for stadium development


Brentford Football Club (BFC) has moved for- ward with plans for the development of a new community stadium in west London aſter it acquired land from Barratt Homes. Te 7.6-acre (3.1-hectare) site was first pur- chased by the development company more


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


than four years ago and is working with the League One club on the stadium scheme. BFC is proposing to build a 15,000-capacity


venue on the land, while having the option for expanding to 20,000 seats at a later stage. Details: http://lei.sr?a=T4b6v


Twitter: @leisureopps © CYBERTREK 2012


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