UK Alternative investments finds health and fitness market key
Overall, investor appetite for UK Alternatives remains robust, with health and fitness centres proving to be one of the most attractive leisure segments to investors, according to the latest report on Alternative Investments in the UK by specialist business property adviser, Christie & Co.
The report, provides an overview of currently achievable yields on prime and secondary investments across various subsectors. The report finds that the average yield on prime investments across UK alternatives, as a whole, ranged from 3.5% to 7.5%, with the health and fitness sector demonstrating yields of 4.5% to 5.8% for prime and 6.5% to 8.2% for secondary investments.
Christie & Co’s report highlights that the segment has seen consistent and impressive growth, seemingly less impacted by economic downturns and a squeeze on consumer spending which has been detrimental to other leisure markets. Visiting the gym is seen as an integral part of a healthy life by many and as such has been seen as necessary spending, with membership up 42% since 2010 and the number of gyms growing 23% in the same period.
As a highly fragmented market, with 25% of health clubs owned by the top ten operators, Christie & Co notes the breadth of opportunity available for investors and operators to capitalise on the strength of the sector. With relatively low barriers to entry and growing demand, the health and fitness market appears to be one of the most attractive leisure segments in what is an increasingly diverse sector of the leisure market.
Jon Patrick, Head of Leisure & Development at Christie & Co comments, “We’re continuing to see an attractive mix of quality occupier opportunities coming to market offering long income potential for investors. A key consideration for investors however is an understanding of the nuances of the operational real estate they are looking to acquire and how secure their investment may be. Christie & Co’s granular understanding of trading performance, business KPIs and capabilities of management enable us to guide both buyers and sellers towards making informed investment and decisions in the Alternatives market.”
To view the full index report visit: https://bit.ly/2KtWEmi
For further information on this press release, contact Fiona Fieldhouse, Head of Corporate Communications, Christie & Co on 020 7227 0793 or fiona.fieldhouse@christie.com
