Canberra-based health clubs and aquatic facilities owner Viva Leisure Limited has continued its exceptional march across the nation’s eastern states, acquiring eight fitness centres in Queensland. The latest acquisition adds an estimated 10,000 members to the high-flying, innovative fitness operator and comes just two months after Viva Leisure completed an acquisition in regional Victoria.
The Queensland centres are in Aspley, Deagon, Ipswich, Mooloolaba, Newstead Gasworks, Redcliffe, Teneriffe and West End. In an announcement to the Australian Stock Exchange, Viva Leisure says the latest acquisition will be fully funded through existing cash reserves. Completion is expected within the next 30 days. Back office integration of the Queensland clubs is expected to be completed quickly with rebranding of the locations to Club Lime will start immediately on completion of the sale.
Launching in 2004, Viva Leisure has wasted no time becoming a leader in the fitness industry, spreading swiftly on a model of affordability, technology and spacious centres accessible around the clock, seven days a week. Now Viva Leisure expects to overlay its membership sign up and online model to enhance the existing and new member experience at the Healthworks sites.
Viva Leisure chief executive Harry Konstantinou says Queensland is a fantastic addition to the company’s existing portfolio.
“Entering the Queensland market for the first time with such a high-quality acquisition of the eight Healthworks clubs is an exciting milestone for the company. The opportunities that it provides to extend our hub-and-spoke model into these new territories is significant. We expect to be operating over 15 locations in Queensland within the next 12 months.”
Mr Konstantinou says Viva Leisure’s growth strategy has prepared the business for fast expansion nationally. The Queensland sites acquired show attractive propositions based on this research and analysis. Under the hub-and-spoke model, the additional locations will operate under the Club Lime and hiit republic brands, in the short to medium term to complement the Healthworks acquisition.
When the latest acquisition is completed, Viva Leisure will be operating across Queensland, NSW, Victoria and the ACT. These additional eight locations will mean Viva Leisure now has secured 70 locations with 52 clubs acquired or currently operating. Five are undergoing fit-out and will open shortly. Another 13 club locations have been secured and in various stages of pre-fitout commencement.
Viva Leisure listed on the Australian Stock Exchange in June, when its share price opened at $1. It was trading at $2.21 at the time of this announcement. The growth has been exceptional, considering Viva Leisure operated 40 clubs as at 30 June 2019. Mr Konstantinou says it demonstrates the company’s ability to expand and integrate quickly as opportunities arise.
Viva Leisure’s membership is more than 58,000, an eight per cent increase from June 30, 2019. The Healthworks acquisition’s 10,000 new members represent a 26 per cent increase in overall membership year-to-date. Aside from the acquisitions, net member growth continues to run at 1,100 members per month. Existing locations and ones in the pipeline have risen to 70, representing a 75 per cent increase since June 2019.
The pipeline of new sites continues to be strong with a further eight greenfield locations currently under negotiation in Viva Leisure’s new and existing operating locations, and there are now six hiit republic locations in operation, including the ACT’s biggest at Mitchell, which opened last Saturday. The current hiit republic membership exceeds 1,565 members.