Next Capital completed the acquisition of a controlling interest in Funlab in December 2016.
Funlab creates, develops and operates out-of-home entertainment and leisure venues. The Business currently services in excess of three million customers per annum, across three concepts and 17 locations on Australia’s eastern seaboard. The three concepts are:
- Strike Bowling bars – 12 venues, including escape rooms, laser tag, karaoke, pool and a licenced bar and kitchen;
- Sky Zone indoor trampoline parks – four venues, under a franchise agreement with US franchisor; &
- Holey Moley – Australia’s first putt putt mini-golf with full service licenced bar. First venue opened in late September 2016.
Investment highlights include:
- The strength of the Funlab consumer offering in both the bowling bar and trampoline park markets. The business’ latest offering, Holey Moley, is a brand new concept in Australia;
- The out of-home leisure and entertainment industry is benefitting from a global trend where consumers are spending more of their disposable income on experiences;
- Strong like for like growth and return on capital; &
- Significant growth potential through the roll-out of new facilities, new product development and site refurbishment to become an entertainment business of material scale. There is also the potential for bolt-on acquisitions.