The business model has evolved during our history. We have strived to deliver ever more relevant and sustainable developments, and this has led to bigger projects with greater scope and revenue generating potential.
Our latest scheme, in East Kilbride, will be known as Playsport Scotland and clearly indicates the direction the company is taking.
Firstly it is big: 100 acres and a whopping 220,000 sq ft of indoor sport and recreation. We believe scale is important. It is needed to enable us to offer the range of activities we want but also, very importantly, to create a strong profile for the developments. Sport, with its highly disparate delivery infrastructure, particularly at the level of grassroots participation, struggles to be heard in an era of massive brand advertising spend. Scale is one way of competing but that’s why we also believe that our developments should be very visible and, wherever possible, in prime locations.
Secondly it has many more activities than previous projects. In fact there are 15 different dedicated sports and activities, indoor and out, at Playsport Scotland. In this way we are creating a unique offer which is capable of appealing to a wide audience, irrespective of age or ability. Individual sports have started to recognise what retailers have known for a long time – it is much better to be situated alongside other sports than on a standalone basis. Think of our facilities as shopping centres for sport.
Thirdly we continue to build on the theme of partnership. Playsport Scotland is another collaboration with a local authority and on this occasion we have entered a joint venture agreement with a highly regarded Scottish property company, Kilmartin Properties, to help deliver the project. We are working with a number of sports governing bodies, an area we see becoming more and more significant. We are also developing political support and working with a variety of government agencies. Perhaps most importantly to both the financial and operating models we are extending the number of operational partnerships we will enter into. At Playgolf Manchester we have American Golf as our retail tenant. In Northwick Park the shop, gym and restaurant are all let. At Playsport Scotland the football, climbing, Aerial Adventure, tennis, health and fitness, Kids Zone, retail and restaurants will all be let to third party specialists.
