Britain’s luxury fitness club Third Space is gearing up for significant expansion across London after securing a substantial funding boost. The upmarket gym has received a £75 million loan from OakNorth Bank, aimed at supporting its plans to open new locations in prestigious areas including Queen’s Park, Chelsea, and Oxford Street. This injection of capital comes amid a burgeoning market for premium fitness spaces in the capital, where health-conscious consumers are driving demand for high-end wellness experiences.
Third Space, often dubbed Britain’s "poshest gym," currently operates 13 clubs across London, with memberships costing around £250 a month. Its clientele reportedly includes high-profile figures such as model Rosie Huntington-Whiteley, highlighting the brand’s appeal among celebrities and affluent customers. Founded in 2001 by Joel Cadbury, an heir to a chocolate fortune, the company was acquired by US private equity firm KSL Capital Partners in 2021. Since then, Third Space has solidified its reputation as a leading luxury fitness brand in the city.
The funding from OakNorth represents the bank’s largest loan to date and marks Third Space’s first use of debt financing, following a history of being entirely equity-financed. CEO Colin Waggett emphasised that this strategic move will improve the company’s overall cost of capital, enabling more aggressive growth. Speaking to the Health Club Management publication, Waggett noted that landlords are actively targeting Third Space with potential new sites, signalling strong confidence in the brand's expansion prospects. Several existing clubs currently operate with waiting lists, underlining the robust demand for its exclusive fitness offerings.
The £75 million loan is part of a wider £88.5 million capital solution provided to Third Space through a partnership between OakNorth and investment firm Searchlight Capital Partners. This financial package is designed to support Third Space’s broader strategic plan to significantly increase its footprint in London and expand its team. Industry insiders highlight that the global boutique fitness studio market was valued at $49.3 billion in 2021 and is projected to reach $66.2 billion by 2026, situating Third Space at the forefront of a fast-growing segment.
OakNorth Bank, known for its focus on supporting entrepreneurial ventures, described the transaction as a critical milestone for Third Space as it aims to scale its operations. The club’s expansion is set against a background of rising membership demand and a competitive landscape where premium offerings are attracting discerning fitness consumers. According to various reports, Third Space’s stylish facilities occupy prime London locations such as Canary Wharf, Marylebone, and Mayfair, further reinforcing its elite status.
This development signals a broader trend in the fitness industry, where luxury health clubs are capitalising on increasing market interest in wellness and lifestyle-oriented fitness. The involvement of private equity firms like KSL Capital Partners and Searchlight Capital suggests confidence in the sector’s long-term growth potential. As Third Space moves forward with its expansion plans, it may well set new standards for boutique gyms in London and beyond, catering to a clientele that demands exclusivity, superior service, and cutting-edge fitness environments.
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Source: Noah Wire Services