Latest News

Back to Latest News back


Rising metropolitan land values lead to gym site sales

Rising metropolitan land values lead to gym site sales
July 3, 2015

Fitness club locations in sought-after suburbs in Melbourne and Sydney are being sold for redevelopment - with developers paying a premium for the sites.

With land values rising in both cities, developers are looking to acquire sites for high density residential living.

A recent deal saw an investor pay $10.53 million for a property at 1-3 Coleman Parade in the Melbourne suburb of Glen Waverley - that is currently home to a Fitness First club.

The new owner apparently has their an eye on the long-term future development potential of the 3,367 metre²  site in a sought-after suburban school zones, with selling agent Tom Noonan suggesting that the new owner will look to develop the site when Fitness First’s lease expires.

In May, a group of high-profile investors, including Allen Linz of Rebel Property Group and developer Robert Magid, sold the 3,150 metre² site of Fitness First’s Sylvania club in Sydney's Sutherland Shire for an undisclosed sum – believed to be in the region of $20 million.

In April, Chinese-backed developer ICD Property paid $15.6 million for a Fitness First gym on a 9,057 metre² site in Highett in Melbourne's south eastern suburbs.

All three sites were sold with 10 or 11-year leases in places to the global gym chain.

Colliers International selling agent Noonan, who marketed both Melbourne gyms with colleague Jeremy Gruzewski, told Fairfax media “gyms have traditionally not been on investors' radars.”

Noonan added that tightening yields were more a factor of investors recognising the longer term development potential of the gyms in their suburban locations than the lease covenants in place.

Noonan suggested that the Glen Waverley site could support a medium-density residential development of up to three stories when the lease expired.

Image show Fitness First Glen Waverley.

Related Articles

13th May 2015 - Fitness First opens first Melbourne High Performance Club on Collins Street

2nd September 2014 - Western Sydney mini golf attraction sold to property developers for $130 million

30th July 2013 - Plus Fitness appoints National Franchise Support Manager

30th October 2012 - Snap Fitness celebrates 100th Club opening in Australasia

Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.


supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Felton Industries

Felton Industries is Australia’s leading designer, manufacturer and supplier of quality outdoor furniture and has been supplying premium seating solutions for all sporting, commercial, community…

read more

Parks / Play / Recreation / Sport / Venues



    SimplySwim is a school management solution that helps swimming school owners and managers optimize operations by automating functions such as managing class schedules, billing and…

read more

Aquatics / Education / Recreation / Safety / Technology


METRA Australia

With industry leading solutions in design and durability you can improve your facilities with our access control operations, payment systems and flexible personal locker storage solutions. Your…

read more

Aquatics / Attractions / Fitness / Recreation / Security


Goplay Commercial Playground Equipment

Goplay designs and manufactures specialised playground equipment for indoor play centres, hotels, food chains, clubs and resorts. If our years of experience and dedication have taught us one thing,…

read more




Geoff Ninnes Fong & Partners (GNFP) is a structural, aquatic and civil engineering consultancy with broad experience in the design of new municipal and institutional swimming pools, hydrotherapy…

read more

Aquatics / Consultants / Design / Venues



Our team believes floors should be beautiful, comfortable, and engineered for safety, even when wet. Life Floor tiles meet six unique performance based standards: slip-resistance, impact absorption,…

read more

Aquatics / Play / Recreation / Safety / Surfaces


Altitude Training Systems

ATS are global leaders in altitude training and research. From mask systems and inflatable tents to simulated altitude facilities, we help all athletes gain the competitive edge. Our…

read more

Fitness / Sport / Technology


iDwala Pty Ltd

iDwala is the Community Sports Facility Specialist offering the highest quality designs and technical expertise to Councils, Schools and Sporting Clubs looking to create sporting…

read more

Consultants / Design / Recreation / Sport / Surfaces


get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business