Goodlife Health Clubs Acquires three Re-Creation Clubs
The Ardent Leisure Group (ASX: AAD) has announced that it has completed the acquisition of three Re-Creation health clubs in Melbourne for its Goodlife Health Club brand and secured three new development opportunities for its health club and bowling portfolios.
The three Re-Creation Health Clubs in the Melbourne suburbs of Armadale, Glen Iris and Sandringham in Melbourne cost $10.1 million of which $5 million is deferred between six and 12 months from settlement.
In a statement AAD explained that "these well established clubs occupy dominant positions within their respective markets and will allow Goodlife to significantly strengthen its position in the Melbourne market."
The impact of the acquisition is expected to deliver EPS accretion of approximately 2.9% on the Groupï¾s FY 2012 consensus earnings.
In addition, Goodlife has been successful in securing a new development site in Maroochydore on Queensland's Sunshine Coast.
As Group Chief Executive Greg Shaw notes "Maroochydore will support our existing Caloundra health club and bring a high quality facility to this rapidly expanding market."
The facility is anticipated to open in mid 2012.
The Group has also advised that AMF and Kingpin have been successful in securing new sites to strengthen their development pipeline.
AMF has reached commercial terms to open a new leasehold site in Penrith, Sydney.
Speaking of this site, Shaw explains "AMF is pleased to secure this site following the expiry of our lease on an older style Penrith centre in September 2009. The Penrith area has traditionally been a strong bowling market and we look forward to reestablishing our presence in this key market."
Kingpin has also reached commercial terms to open a new flagship centre in Townsville, North Queensland.
The Townsville market has continued to grow as a major mining port, military and government base for North Queensland. To date this population growth has not been matched by additional adult and family entertainment venues. Kingpin will introduce a unique entertainment venue for patrons from
Townsville and surrounding markets. The Kingpin centre in Townsville is expected to open in July 2011.
Capital expenditure on the two new bowling centres is expected to be approximately $3.5 million per site with capital expenditure on the new health club expected to be approximately $2.3 million. This expenditure will be funded by a combination of retained earnings, the distribution reinvestment plan and undrawn debt facilities.
The Group continues to actively pursue roll-out opportunities across its Bowling, Health Club and Main Event divisions to deliver higher incremental returns and leverage further operational and marketing efficiencies for the Group.
16th October 2010 - OLIVER MOVES TO HEAD GOODLIFE
24th August 2010 - NUMBERS RISE BUT PROFITS DIP FOR ARDENT LEISURE
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