June 16, 2026 Community & Social Infrastructure

Understanding Commercial Mortgages for a Tennis and Squash Centre

Buying the premises your tennis or squash centre already operates from is a defining step for any owner. At Ardent Capital Group we speak with racquet sports operators about this kind of commercial property purchase, so this guide sets out how a lender assesses the freehold, the deposit to plan for, and the ways these purchases are commonly financed.

Ardent Capital Group is a specialist in commercial mortgages for tennis and squash centre operators across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy.

Access finance from $100,000 to $10,000,000+, aligned to your purchase price and fit-out needs.
Over $500,000,000 in funding facilitated across the last decade for more than 1,000 borrowers.
We service Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
Direct, senior broker support from enquiry to settlement, then through future expansions.

Why buy rather than lease your tennis and squash centre

Your facility is specialised. Court footprints, clear heights and acoustic treatment narrow the viable locations. The fit-out is capital heavy, for example glass-back squash courts, sprung timber or cushioned acrylic surfaces, professional LED lighting with glare control, high-capacity HVAC for large volumes, acoustic panels, change rooms, cafe or pro shop, reception and POS, and mezzanine viewing. Relocating that investment is costly and disrupts coaching programs, comps and memberships. Ownership locks the right building, stabilises occupancy cost and lets repayments build equity in an appreciating asset.

Key drivers for buying:

Location as revenue anchor, with catchments tied to schools, gyms and evening foot traffic.
Control over layout and upgrades, such as additional squash courts, resurfacing cycles and lighting transitions to LED.
Revenue resilience from diversified streams, including coaching, squads, competitions, social play, restringing, retail and food and beverage.
Repayments that build an owned asset, with rent retained within your structure.

When buying may not suit: a short remaining lease with uncertain planning approvals, a planned relocation to a multi-court greenfield site, or capital that earns more in extra courts, new roofing, or coaching staff. The call belongs to you.

The mechanics of a tennis and squash centre mortgage

Deposit and LVR: For owner-occupiers, commercial premises commonly gear up to around 80 per cent, so plan for a deposit from about 20 per cent. Where additional security supports the loan, such as equity in another property, a higher effective LVR up to 100 per cent of the purchase price can be possible, and our broker team can explain how. Court fit-out is specialised, so some lenders take a more conservative view of value and set the deposit accordingly.

Loan term and structure: Banks commonly run 10 to 15 years, and non-bank lenders 25 to 30 years. Terms can run principal and interest to build equity, or interest only for a period to prioritise cash flow around resurfacing, court conversions or program ramp-up.

Security and serviceability: The property is the primary security. Lenders assess business financials, BAS, management experience, seasonal cash flows and EBITDA coverage against proposed repayments. Add-backs such as one-off resurfacing or temporary closure can be considered where supported.

Owner-occupier treatment: Lenders typically view an owner-occupier racquet sports centre favourably due to tied occupancy, invested fit-out and stable community participation, which can support stronger terms.

Structuring the finance

Many racquet sports operators hold the freehold in a separate entity, such as a company or trust, and lease the premises to the trading business at a commercial rent. A lender then reads the inter-entity rent as the serviceability line, and the arm's length lease sets market rent, outgoings and renewal terms that stand up to valuation for both entities. With a background in financial planning, Nick and the Ardent Capital Group team can map the finance around a structure that suits your position, then work with your accountant for the final confirmation.

Some operators buy through a self-managed super fund. Commercial premises generally qualify as business real property, so an SMSF can hold the building and lease it to the trading entity at market rent supported by an independent appraisal, with the rent actually paid. The fund borrows under a limited recourse arrangement over that single asset, held in a separate bare trust, so fit-out and equipment are financed separately outside the fund. Contribution caps, liquidity and the compliance detail decide whether it works. Ardent arranges the finance and tells you which lenders take this security and on what terms; your accountant and a licensed SMSF adviser confirm the fund, tax and ownership detail before anything is locked in.

How lenders size up the deal

Business financials and management: Profit and loss, balance sheet, BAS, ATO position and evidence of stable or growing program revenue across terms, comps and coaching.
Serviceability: Debt service coverage from EBITDA, with attention to seasonality, membership retention and evening and weekend utilisation.
Property and valuation: Zoning for sport and recreation, court count and sizes, roof height, acoustic treatment, parking ratios, amenities and condition of surfaces, lighting and HVAC. Specialised-use valuation methods may apply.
Deposit and equity: Cash, retained earnings, or the ability to leverage your equity in other property.
Lease and occupancy: If buying with a lease in place, market rent and tenant profile. For owner-occupiers, a clean internal lease between entities supports valuation and tax clarity.

A specialist broker who understands racquet facilities can frame these points in a way lenders value, which supports the terms and timeframes on offer.

A scenario worth considering

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run. A suburban operator runs 4 indoor tennis courts and 6 squash courts, with lease expiry in 18 months, strong evening and weekend bookings, and a plan to add two glass-back courts. The objectives are to control the site, protect program continuity, and fund resurfacing and lighting upgrades without straining cash flow.

Options we would map:

Buy the current site: purchase price around $4,000,000 to $5,000,000, deposit from about 20 per cent, interest only for two years while upgrades complete, then principal and interest to start amortising.
Buy a larger warehouse and convert: purchase $3,500,000 to $4,500,000, with court, LED and HVAC fit-out financed separately over five to seven years, and the mortgage sized to serviceability including future programming uplift.
Use additional security: leverage your equity in residential or other commercial property to reduce the cash deposit and access a higher effective LVR.

Common holding arrangements a lender sees here include the property in a family trust with a market rent lease to the trading company, or an SMSF holding the freehold with strict rent at market rate. The likely lending envelope is up to around 80 per cent LVR on the freehold for an owner-occupier, with fit-out and equipment under asset finance, subject to financials. How we would approach it: we would map the ranges, structures and repayments, then set out the numbers, terms, timelines and trade-offs so the decision is yours. The figures above are illustrative, not confirmed outcomes.

Related finance for a tennis and squash centre

Asset and fit-out finance: Fund ball machines, glass-back squash courts, LED lighting rigs, access control, POS and resurfacing equipment on terms that match asset life. See our sports centre equipment finance options for courts, acoustic treatments, changerooms, cafe or pro shop upgrades and mezzanine viewing.
Working capital: Smooth seasonal cash flow around school holidays, coaching intakes and resurfacing shutdowns with working capital for a sports centre, and keep a buffer for inventory and restringing materials.
Refinancing and debt consolidation: Reset rates and terms, consolidate equipment facilities and free up headroom for the next court conversion.
Construction and renovation: Fund greenfield builds, additional courts, roofing, solar for daytime training and HVAC upgrades.
Business or premises acquisition finance: Buy the freehold, a competitor's booking book, or a partner buyout with clear valuation support.

Owning the premises can free equity for growth, and a refinance can align all facilities to your program calendar.

Specialist finance for tennis and squash centre premises

Ardent Capital Group arranges and structures commercial mortgages for tennis and squash centre owners. We align the loan to how you plan to hold and occupy the property, and we coordinate related facilities so fit-out and working capital move in step. Our sports centre property loan desk works across purchase, refinance and equity release.

We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra, Hobart and surrounding metro and regional areas. We have helped facilitate over $500,000,000 in funding over a decade for over 1,000 borrowers. If you want clear options and optimal financial outcomes, talk to us. Ardent Capital Group is a specialist in commercial mortgages and our team can help you today.

Frequently asked questions

What deposit do I need to buy a tennis or squash centre freehold?

Most owner-occupiers plan for a deposit from around 20 per cent, aligned to an LVR up to about 80 per cent. A higher effective LVR can be possible with additional security.

Can I use my home or another property to leverage your equity for the deposit?

Yes, cross-collateral or limited guarantees can support a lower cash deposit where the overall serviceability stacks up.

Is an SMSF allowed to buy the centre and lease it to my trading company?

Commercial premises usually qualify as business real property, so an SMSF can own the building and lease it back at market rent subject to super and lending rules.

How do lenders view the specialised nature of courts and fit-out?

Valuers assess zoning, court count and sizes, roof height, acoustic treatment, parking and condition of surfaces, lighting and HVAC. Some lenders treat it as specialised, which influences LVR and valuation method.

Can I finance new courts and LED lighting separately from the property loan?

Yes, fit-out and equipment can sit under asset or fit-out finance with terms aligned to asset life, while the mortgage covers the freehold.

Will seasonality in coaching and comps hurt my serviceability?

Lenders factor seasonality, so strong booking history, membership retention and diversified revenue across programs help demonstrate stable coverage.

Does owner-occupier status improve terms compared to buying as an investment?

Generally yes. Lenders often favour owner-occupiers due to tied trade and invested fit-out, which can widen the lenders willing to consider the deal and the terms on offer, subject to serviceability and approval.

Written by

Nick Chong

Managing Director, M.AppFin, Dip. Mortgage Mgmt

Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.