Viva Leisure expands into Queensland with Healthworks fitness centre acquisitions

Viva Leisure ASX VVA Healthworks Fitness Centres Queensland
Viva Leisure is scooping up eight Healthworks fitness centres in Queensland for $2.7 million.

ASX newcomer Viva Leisure (ASX: VVA) has shouldered into the Queensland market after agreeing to purchase eight Healthworks fitness centres in the state.

The Queensland buying spree follows on the heels of the company’s purchases in regional Victoria less than two months ago, which resulted in Viva securing eight health centres across Aspley, Deagon, Ipswich, Mooloolaba, Newstead Gasworks, Redcliffe, Teneriffe and West End.

Viva said it would fund the $2.7 million Queensland Healthworks acquisitions with its existing cash reserves.

This latest purchase is expected to be completed in 30 days and will bring in about 10,000 new members to Viva’s health club portfolio.

Viva chief executive officer and managing director Harry Konstantinou said the Queensland buy up was a “high-quality” acquisition for the company and marked an “exciting milestone”.

“The opportunities that it provides to extend our hub and spoke model into these new territories is significant.”

“We expect to be operating over 15 locations in Queensland within the next 12 months,” he added.

Viva ASX listing

Viva debuted on the ASX in June after raising $20 million via the issue of 20 million shares at $1 each.

According to Mr Konstantinou, the company was the first dedicated health club operator to list on the ASX at the time, with clubs in 33 different locates across Australia prior to listing.

Expanding national presence

Since the end of June, Viva’s membership has increased 8% to reach 58,342, with this latest acquisition anticipated to boost overall membership for the year to date by 26%.

This equates to about 1,100 new members a month.

In addition to the swelling members, Viva’s pipeline and operating locations have grown  75% to 70.

The company now has 52 operating locations, including the eight new Healthworks sites, five other locations due to open and a further 13 locations in different stages of pre fit-out.

Viva plans to expand this even more with a pipeline of new sites identified and under negotiation.

The company also runs the hiit republic brand, which has six locations that have been opened in the last six months.

Since July, hiit republic members have risen from 775 to 1,565 with the company expecting to have nine operating hiit republic health centres by the end of the year.

Investors reacted positively to this morning’s acquisition news, with the company’s share price trading at $2.22 early afternoon – up 9.36%.