Investor required for the development of padel courts.

Investor required for the development of padel courts.

Introduction:

• Padel has evolved from a niche sport to one of the fastest growing racket sports worldwide.
• Its popularity is booming in the European countries, with the USA and the Middle East following suit, with record growths of 181% per annum!!
• This growth has created a unique window of opportunity for entrepreneurs, not only generating an income through hourly rentals of courts, but also opening the door to additional revenue streams such as memberships, tournaments, events, sponsorships, selling of gear relevant to padel.
• The entrepreneur seeking an investor for the development of padel courts in the Cape Town/Helderberg area, has concluded an agreement with a tennis club that is in existence for over 100 years- the club has agreed to make 2 tennis courts available to the entrepreneur to convert to 4 padel courts.
• This is a unique opportunity, as the tennis club already has sufficient parking, members who will join the padel club, a club house, and infrastructure.
• The entrepreneur has concluded a very favorable rental from the club i.e. R180,000 per annum for a 5year period with an option for another 5 years.

Finances:

• A very conservative financial projection has been done i.e.:
• Income- working only on a 38% occupancy of the padel courts (the maximum occupancy can be 390 hours per month, but the income has been calculated on 150 hours per month, at a fee of R120/player/hour, the income is R288,000 per month- calculated at 16 players per hour.
• The occupancy is very conservative and will increase dramatically.
• The outlay for full completion of 4 padel courts is R4 million- this includes a turnkey outlay, excluding a roof over the 4 courts that can be added as a next phase.
• Expenses are calculated at R90,000 per month covering all the running costs.
• The income received will be split between the entrepreneur and the investor per agreement in order for the investor to earn an acceptable ROI.

Selling price/Investment amount required:

• R4,2 million