LA Fitness, the British-based PLC, is actively looking for 10-15,000 sq ft sites in the greater Dublin area to locate branches of its burgeoning leisure centre empire.
With a market capitalisation of £120 million sterling on the London Stock Exchange, LA Fitness plan to open over 20 fitness centres here in the coming years and are "in active discussion" regarding three sites at the moment with another four "under consideration," according to agent Fintan Tierney of Lambert Smith Hampton.
The arrival of the chain will pose direct competition to the current major players in the Irish market which include Total Fitness owned by Albert Gubay with branches on the Malahide Road and Castleknock and Westpoint Health and Fitness Centre in Blanchardstown, owned by Ben Dunne. Crunch Fitness has centres in NUIG, UCD and Dun Laoghaire.
But according to Tierney, while LA fitness may represent a threat, these operations are catering to a growing market, which is yet in its infancy and has "phenomenal capacity." However, some of the smaller fitness centres may feel the squeeze. As it is, there have been a few casualties of high rents in the city centre. Pulse Fitness Centre in Temple Bar has been forced to close after 16 years because it has become unviable to remain in that location and efforts to secure another city centre premises have been unsuccessful. Memberships have been transferred to the Jackie Skelly gym in Clarendon Street.
LA Fitness is flexible in its search for "the right product" says Tierney. It is prepared to either buy a premises or rent at up to £25 per sq ft (31.74) and will consider new buildings or older ones like cinemas or leisure centres that are large enough to be adapted to their requirements and to incorporate a swimming pool.
Sites in or adjacent to shopping centres, retail parks, business parks or residential areas will be considered, as long as there is a demographic profile of at least 20,000 people within 10 minutes drive. They also specify that car-parking on-site or nearby is a must.
LA Fitness currently has more than 30 clubs in the UK, including one just opened at the new Ramada Hotel complex at Shaw's Bridge in Belfast, which is the group's first club outside England. The company has indicated that it is ready to operate in Spain.
It has a target of 70 clubs by July 2003 which is being funded by a £10.2 million rights issue and a £15 million bank loan to purchase and develop new clubs. It is confident of success after the retail price index recently showed that health clubs were on the list of the nation's new must-have goods and services. At present the company employs more than 700 people and has a membership of 60,000.
