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Holmes Investment Properties Plc signs up third leisure centre partner

Holmes Investment Properties Plc (HIP), the leisure and adventure park developer have secured a third leisure partner, Go Karting for Fun Ltd who trade as "Team Sport Indoor Karting". HIP will source and purchase land to develop sports and leisure centres on their behalf.

Holmes Investment Properties is a land investment company, which currently operates in the sports, leisure and entertainment market to benefit from the sector's continued strong growth. According to research, there are 6,435 leisure centres in the UK with an additional 150 venues opening each year (source: leisuredb), leaving plenty of scope to grow for HIP and its partners.

Team Sport Indoor Karting is an established go-karting brand that already has 20 venues in the UK, with significant growth plans over the coming years. The Memorandum of Understanding is a non-exclusive arrangement to find land in parts of the UK that Go Karting for Fun Ltd does not currently have venues. HIP will purchase sites and build a high quality venue, for which the operator will lease on a long-term basis. Once planning permission is granted, Holmes Investment Properties will fund and build each site to shell and core before passing over to our partner to fit out and open. Go Karting for Fun Ltd will become a long term tenant of HIP where rental yields are expected to cover financing costs and produce a healthy profit per Centre for HIP.

The company will receive rent on an above average rental yield over a long term lease allowing all costs to be met, a profit generated and underlying growth in the capital asset too.

Martin Helme, CEO of Holmes Investment Properties added: "We are assessing more than 30 pieces of land currently and we look forward to making further announcements in due course. The Team Sport Indoor Karting brand is particularly exciting as we only recently announced we have an offer of funding for 100% of the development costs of some of our proposed Centres which allows a quick roll out following purchase of each site. The Directors believe that owning land with newly developed buildings on long-term leases to well known or long established operators represents a solid growth strategy for shareholders."

Contact:

Martin Helme, Chief Executive Officer
+44 (0)7779 601541 or +44 (0)203 709 7120
Martin@hip-prop.co.uk

Murray Harkin, The Lyndon Agency
+44 (0)77852 54639
Murray@thelyndonagency.com