Virgin Active ready to move into the rest of Africa

VIRGIN Active will take its gyms into the rest of Africa to cater for a burgeoning middle class whose rising disposable income is leading to lifestyle changes.

The company has about 108 gyms in South Africa and one in Namibia.

“We are looking at a number of African countries. The first of which is Kenya. It’s important to show solidarity with countries that have had terrorist attacks … I’m going there next month,” Virgin Group founder Sir Richard Branson said on Thursday.

He was speaking at the official opening of Alice Lane Health Club — the group’s “blue chip” fitness club in Sandton, targeted at executives and “discerning” individuals. The R150m, 3,600m² double-storey gym can accommodate up to 9,000 members but membership will be capped at 4,000 and cost a monthly fee of R1,600.

There are various membership offerings available in this segment, including benefits to members of Discovery Vitality.

Alice Lane Health Club forms part of the global Virgin Active Classic Collection, with 16 clubs situated in various areas such as London, Lisbon, Madrid, Milan, Sydney and Singapore.

The company is also targeting the middle and lower end of the market with its smaller express clubs, which are part of a 30-to 40-club roll-out over the next three to four years.

Sir Richard recalled a phone call he received years ago from former president Nelson Mandela, which prompted his interest in building health clubs in South Africa.

“He called while I was in the bath … in the countryside in England,” Sir Richard said.

“He told me a chain of health clubs had gone bust and 8,000 people were about to be out of work … I should get on the plane and save them.

“Obviously, with Madiba, you do as you’re told,” he said.

The Virgin Group acquired the ailing Health Racquet Club chain in 2001.

The local health club market is competitive, with a number of brands such as Planet Fitness, Sweat 1000 and Curves offering a variety of facilities and services.

Planet Fitness CEO Manny Rivera said this year the company would offer “no-frills”, budget health clubs, called Planet Fitness JustGym.

Planet Fitness aims to open up to 100 such gyms in the country over the next five to 10 years.

According to Sir Richard, South Africa was an attractive investment destination. In the African hospitality space, Virgin Group owns Ulusaba, an exclusive game reserve in Mpumalanga and luxury boutique hotel Kasbah Tamadot in Morocco.

“We are looking at starting a little hotel in the Cape, we’re going down there next month to look at a property,” he said.

“I think that the world looks at South Africa with envy thanks to Nelson Mandela and Desmond Tutu. South Africa is by no means perfect but I don’t think it deserves much negative press, it’s a young country and it has its teething problems.

“South Africa has to do what any other country needs to … the main thing that’s wrong with the world is that there are quite a lot of people out of work. Real growth of employment is going to come from young entrepreneurs,” he said.

Virgin Active ready to move into the rest of Africa