We are selling an entertainment club with space for 1600 people located in the middle of Kampala. The average monthly income is 30,000 USD.
With good management the payback period will be 2 - 3 years. We need 800,000 USD. The place has a lease of 18 years.
The club's target market consists of people between 23 and 50 years of age.
We are looking for a partner or a buyer as entertainment is not our core industry - we do start-ups and sales.
600,000 US dollars have been invested so far. The club needs rebranding and professional management.
Our main competitors are four Clubs, which have been in existence for the past 20 years. We have an advantage over them in terms of location and capacity. In addition, our customer base is 70% different from theirs.
One can never go wrong with the entertainment business in Uganda. It is part of the people’s culture to go out on a daily basis. The place has food and drinks next to the club facilities. All the market players are making good money. Kampala has over 6 million people and to break even one only needs 150 clients 3 days a week.
The reason to sale is that first and foremost we do startups and sale, so this is not our industry. In addition, one of the partners has become a born again Christian and wants out of this industry.
We need a potential buyer or a silent investor if need be. One has to come with 300,000 USD to acquire 40% stake in the Club.