From little things, big things grow
Given our reputation as club development partnership specialists, it may surprise you that a big portion of our time is spent on general club property advisory and strategy implementation.
Many of our clients are engaged in club redevelopments projects and are seeking our expertise in this specific context, but we spend much of our time assisting our clients to maximise their property opportunities in a variety of contexts.
This is important for club General Managers because property that is proactively managed with a focus on commercial outcomes can make a big difference to your bottom line and balance sheet, even if the tasks themselves seem small.
The bottom line
If your club has non-core or excess property it could represent a significant opportunity to produce additional and diversified revenue. It’s not just the revenue that helps. A commercial lease typically capitalises at around a 5% yield, meaning that a $100,000 lease would theoretically add $2,000,000 to your asset base. A significant contribution to the club and members.
Complementary activities
Aside from the income and asset value, a proactive approach to your property could present an opportunity to attract tenants that will bring new people into the club. This can deliver community benefit as well as increase trade. We have some very good examples of this which we can share if you are interested.
What can I do?
There are three areas that require attention to maximise the potential of your property holdings.
First is addressing property related issues to attract potential tenants. Whether it be obtaining an approval, repairing damage or a fresh lick of paint, a cared for rather than neglected property is both obvious and important to tenants.
Second is thinking strategically about the opportunity. Is there a gap in the property offering in your area? What uses are complementary to your club? What uses will deliver community benefit which is aligned with the club’s vision? Getting this approach right is crucial to achieving your objectives.
Third is implementation. Bringing the ideas to life through networks, knowledge and effort.
Augusta Advisors looks at every project from the perspective of the landowner. We leave no stone unturned in identifying value for the landowner and we execute the strategy with the highest level of care.
To learn more about how we can help you get the most out of your club property please contact us on 02 9966 8898 or email us at admin@augustaadvisors.com.au.
