As an example of “going the extra mile”, Sadler explains that Motive8 has established sinking funds at selected full-service locations. This is to enable the repair and upgrade of equipment years down the line: “Once a developer has sold a block and its accompanying freehold, it often won’t commit further investment to the leisure facility. We prepare for this eventuality with a fund that can be accessed by the management company when the time comes.”


BALANCING AUDIENCES As a new entrant to the sector, with fi ve residential clubs in south-east England, Nuffi eld Health has incorporated this stream of business into its corporate wellbeing division and is looking to expand through partnerships with developers such as Ballymore. In two of the sites it operates, Nuffi eld works on


March 2013 © Cybertrek 2013


a management contract basis, taking a monthly fee with a built-in margin. “Some developers see a health club primarily as a promotional tool and are therefore willing to subsidise a residents-only facility because of the marketing benefi ts,” says account director Chris Harrison. “After all, would you rather live above a Tesco Express or a full- service health club?” Nuffi eld, though, is


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equally interested in evolving a more commercial model, enabling it to take on a development’s facility akin to a leaseholder, by assuming responsibility for all costs and profi ts. Harrison explains more: “Under a management contract,


much of the risk sits with the developer or freeholder. We’re seeking control of our own destiny by taking on the risks and costs associated with fi tting out and operating a club, while also keeping any income generated from the space. For


Read Health Club Management online at healthclubmanagement.co.uk/digital 41


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