Many clubs want to or even need to look at strategies to create reoccurring revenue streams. This is often done thought their property strategy if repurposing surplus land/buildings to alternate uses. But many clubs managers just aren’t sure what uses are the right fit and what may be too high risk.

We asked Anna Porter of Suburbanite Asset Advisory to help us navigate all the options.

Anna put together the following uses that create reoccurring revenue, which ones don’t and if she thinks they are a ‘hit or a miss’.

Alternate uses Use/Activity Does it create reoccurring revenue? Hit or Miss as a complimentary use for a club?
Childcare/Day-care Yes More recently becoming oversupplied, future of use is volatile
Indoor recreation facilities (ie: gym) Yes Hit
Pool

 

Yes, if managed commercially  

Hit

but WH&S/insurance needs to be considered

Retail Yes, unless sold Volatile & being disrupted by online retailers
Shipping containers for F&B/retail Yes Hit

Smaller retailers & F&B that can leverage the ‘uber eats’ economy are better positioned

Food Vans Yes – minimal and inconsistent Hit
Residential strata units No Miss if reoccurring revenue is the goal
(Leasehold) retirement and seniors living Yes Hit
Strata over 55’s units No Miss
Aged Care No – many run at a deficit Miss
Community facilities Not usually Miss – let council provide these, whilst admirable it is not the clubs responsibility
Parks and open space No Miss
Car parking Not usually

(some areas it can generate revenue but not often much)

To be provided as required but not in excess

“The hit’s and misses are based on a number of considerations, including market acceptance, future of that sector, viability compared to volatility and how complimentary the use is to a club,” says Porter. “Obviously this will vary somewhat from location to location, or club to club depending on their individual strategy, but this is a guide worth considering before jumping into a project”.

Anna acknowledges that all developments will need some of these facilities that don’t create reoccurring revenue such as parking, but if it isn’t a reoccurring revenue asset then the club should consider only having the minimum required of this use.