This article is from the Australian Property Journal archive
VIVA Leisure has acquired eight pilates and yoga studios, expanding its presence across Queensland, Victoria and NSW.
The health club owner purchased the eight Rebalance Pilates & Yoga studios, in addition to the Master Franchisor of the business, back in October.
“The acquisition of the Rebalance Pilates & Yoga studios as well as the Master Franchisor represents an exciting opportunity for Viva Leisure to continue expanding into the wellness health market,” said Harry Konstaninou, CEO and managing director of Viva Leisure.
Rebalance spans 11 locations under a franchise arrangement, with the remaining three locations not acquired by Viva Leisure currently undergoing the process of de-franchising.
This will enable Viva Leisure to grow the brand and re-establish a franchising system with the assets.
Additionally, a current location in the ACT, The Studio by Club Lime will be reconfigured into a Rebalance studio, opening in January of 2022.
“The Rebalance brand is a well-respected offering throughout its target markets in Queensland and with Viva’s backing will continue its expansion and presence in other states and territories,” said Konstantinou.
The new assets were acquired to complement Viva’s GroundUp strategy, with the group targeting now targeting lower cost offerings that exclusively offer pilates and yoga, ranging from $40- $45 per week, compared to GroundUp’s typical $40-$60 per week target market.
As of completion of this transaction Viva Leisure now has 130 corporate owned locations under its operation. With Viva acquiring a new location every nine days, or 101 locations in total, since its listing on the ASX in June of 2019.
Viva is currently forecasting its future growth to be underpinned by the boutique segment, which currently represents 26% of its portfolio, with 34 locations.
The acquisitions will contribute circa $1.0 million to Viva’s annual EBITDA, with the transactions funded by 50% debt and 50% equity from the group’s cash reserves.
“The expansion of Viva’s wellness and boutique portfolio of offerings and the increase in locations creates a great spring-board into 2022,” concluded Konstantinou.
