Sport Life Group

A PROFITABLE SWIM: pools became the modern Klondike for experienced investors

June 30, 2017
Leechnyi schet

A trend of healthy lifestyle is getting more popular. Whereas in the past a tendency of mass enthusiasm for sport was clearly evident in Europe and the U.S. only, today Ukraine has all chances to be a leader. 

Consequently, demand creates supply! A demand for pools is particularly high. There are very few of them in Ukraine: about half a thousand considering those that work intermittently. This is not enough for the country that has more than 40 million inhabitants. But in recent years the situation is changing. The pools with a clearly defined system that can not only attract people to sports, but also partners to business, join a number of pools working in different parts of the country. 

The discouraging statistics shows the acuteness of the problem: less than 10% people can swim in Ukraine, only 3 of 10 young military-age men have swimming skills, less than 0.5% citizens go to swim in the health-improving groups and classes. Does the chilling statistics originate from this: more than 2500 people die in water every year, more than 10% of them are kids up to 14 years? (In comparison: Germany with population over 80 million has one and a half times less of drowning victims). 

In Volodymyr Shumilin’s opinion, the First Vice President of the Swimming Federation of Ukraine, spoken during the international conference devoted to the construction problems of modern swimming pools, the alarming statistics is due to the fact that a swimming role is underestimated and there is a lack of understanding how to develop it in the country. It is therefore important to develop a program where infrastructure for swimming would be a component of single system where compete not only swimmers, but projectors — in project development, and developers — in construction of modern pools. 

— Nowadays the whole world swims, but we don’t have enough pools, — noted during one of the press conferences the Merited Coach of Ukraine Nina Kozhukh who is recognized as the best women’s swimming coach of Europe by one of the versions and who raised one four time Olympic Champion Yana Klochkova since the attainment of independence. — Some places even fell into disrepair... Certainly there is room for development in this branch.

Does Ukraine have comfortable pools? What are related services there? Where to send a child to teach him to swim? There are already answers to these and other questions. 

It is clear that the comfortable pools are those where water undergoes several stages of purification, ozone and ultraviolet disinfection, there is no crowd in lanes, there are places for warming up in the aqua zones, special machines and necessary equipment. The leader of fitness industry No. 1 in Ukraine — the network of fitness clubs Sport Life possesses the very pools. Its size speaks for itself: 45 full featured aqua zones, 100 ultra-modern pools, 250 wide lanes, 10 million litres of perfectly purified water. There is a high level of reliable health security here, as well as qualitative heating, conditioning and ventilation systems. 

A choice of pool, especially for a kid is a responsible task. A growing organism is demanding for temperature conditions and health security. It's no coincidence that aqua zones of the network of fitness clubs Sport Life are considered as family ones where people of all ages have the best conditions for comfortable swimming.

— Sport Life is the largest network of ultra-modern pools in Ukraine, —says its founder Dmytro Yevdokimov. — We have 25-metre pools with 10, 8, 6, 5 or 4 wide lanes where you can swim comfortably not touching other people, an Olympic model pool 50х25 m with 15 lanes. Their depth is from 1.2 to 1.8 m. The crisis not only doesn’t prevent our clubs from growing, but also inspires to maintain the established standards. Sport Life is a national network with credibility. We have been known in the market for years, we wouldn’t run away one fine day and leave an owner “high and dry” with vacant square metres and a pool deck. We are reliable on actions, not words – all payment details are initially discussed, at the stage of “laying of the foundation”. 

For developers and building owners information 

A number of investment analysts note: investments in construction of buildings with pools are optimal for profitable investments. And developers practically understand the importance of non-price instruments that would help to make their constructions competitive. This is about the related infrastructure of non-residential and office purpose that makes an object more attractive. 

Obviously, pools in one building with offices, residential space or shopping centre have a strong effect of extra cost for lease holders who are attracted by space with “annex”. In addition, an owner wouldn’t come off the loser as pool spaces are not designed and couldn’t be rented for other purposes. Valentyn Yaromenko, the owner of the company managing sales of the development corporation Riel, considers that a good developer should attract partners who provide a quality level of infrastructure as this increases the customer loyalty and influences sales level. 

The problem is the operators of industry and sports cannot always offer a high-quality and affordable service. How can the developers not to be trapped? The recipe is simple: start business relationship only with the proven market players, firstly with large network operators with many years of experience and a good reputation. The network of fitness clubs Sport Life is of that kind and as a long-standing practice shows the partnership with it is profitable for both building owner and developer. 

— Fitness clubs are necessary everywhere, — considers the founder of the network Sport Life Dmytro Yekimov. — Commercial real estate can’t manage without recreation grounds in the modern world. There is a demand for fitness, so supply should be too. Fitness service sphere is a honey pot where money can and must be earned. 

Developer’s practice shows that Sport Life is the most flexible lease holder in the national market as it operates with a large range of different formats: from express clubs with 1500 sq. m to sports palaces with 8000 sq. m. Spaces not only at one floor, but also at various levels are suitable for sports clubs (one of them “fitted in” 5 floors). Clubs with pools successfully work at rented spaces of broad-ranging commercial real estate — in residential complexes, business centres, shopping centres and shopping and entertainment centres and separate buildings. Providing Sport Life with the premises their owners enjoy substantial benefits: it’s calculated that when Sport Life is located in shopping and entertainment centre its attendance grows by 5-7%. In addition, owner gives non-liquid space for which the tenants don’t stand in line (the lower floors of business centres or upper in shopping and entertainment centres), and the very Sport Life can become a super anchor, permanently solvent lease holder. 

In the assessment of Dmytro Yekimov the network is rapidly developing despite the crisis. Sport Life is ready for both negotiations on a long-term lease of premises from 1 thousand sq. m and more and construction of new ones. According to forecasts of business analysts the future of business industry in Ukraine is quite attractive: potential available market may amount to billions of c.u., as demand is steadily growing by several % a year, profitability of fitness business — up to 25% per annum, and each new club of the network provides a full return after 3-5 years of work. 

Sport Life follows a strategy based on the American model of investment format where the network plays a key role, and confidently develops it producing overall cost-effectiveness and profitability. It helps to do not only the network’s business, but also partners’, first of all — building owners, developers who would never face a lease holder’s insolvency.