IS YOUR CLUBS’ AIRSPACE WORTH MORE THAN YOUR LAND?
It is very common for Clubs, especially Golf Clubs to be looking for more innovative ways to utilise their land. The challenge is that much of the land is still required for operational uses. Thinking outside of the box and exploring new ways to create revenue from assets in the portfolio is more important than ever.
Have you ever considered the value of the airspace above the bowling green, or over the 9th hole? Perhaps it is time to reconsider how you are using these assets, as they could be the most valuable spaces you have in your portfolio.
In this edition we explore unused airspace rights, to empty car parks and how it is time to review how they generate revenue for your organisation. We turned to Anna Porter of Suburbanite Asset Advisory on the topic.
According to Anna, the airspace above the UNESCO World Heritage-listed Hyde Park Barracks recently sold for $20 million, and not to put advertising or signage but to trade the rights to use the floor space ratio on another property.
“It is rumoured that three different developers, including Lendlease, have purchased the 12,000 odd square meters of “air rights” for just over $1,500 per sqm. This is the first case in which an Australian UNESCO-listed building has sold its air rights, and only the second case for a government building in Sydney” says Porter.
“Slightly more than 12,000 sqm of air space will be repurposed to another development somewhere in the CBD to add to that projects developable area, known as the FSR. Whilst the FSR trading scheme was only introduced in 2015, the philosophy underlaying this scheme is not a new one and has been done with bio-banking credits for decades, but it is not as common for FSR or ‘air space’ to trade at this level” continues Anna.
“Golf clubs and bowling clubs could be missing out on a hidden pot of gold here. They can still keep their land operational, all the while generating much needed revenue for their air space” say Porter.
The other under-utilised asset that many clubs can look to generate more revenue from is carparks. They often have street frontage or are the first area a guest or member sees when they arrive at the venue. But they just aren’t well used according to the director of Suburbanite. Whilst all clubs have a requirement to provide a certain amount of parking, this means the carparking area solutions need to be temporary or non-fixed.
“Some of the best solutions we have implemented for organisations we work with include food vans, coffee vans, craft beer tasting on wheels and coffee shop shipping containers” Anna reveals.
“This can create an opportunity for your golfers to grab a coffee on their way onto the course, create a food and craft beer event in the car park that taps into a younger demographic or draw in new people to the club as they pass by, if you have street exposure that isn’t being utilised” continues Porter.
“Food vans and craft beers on wheels can be executed by the club, or you can engage with providers and rent out the space, all the while getting more exposure for the club when you attract a larger, more diverse audience. The shipping container coffee shop can also be moved as needed, doesn’t take up much space and can be purchased and brought to site for as little as $20,000 then fully fitted out from $50,000-$100,000. Again, this can be leased out to a commercial tenant, or executed by the club” finishes Anna.
