OakNorth has provided a record leveraged finance loan to luxury fitness operator Third Space to support its London expansion
London’s poshest gym just got a major boost.
Third Space, the celebrity-frequented health club operator where IM8 co-founder David Beckham has been spotted working out and Bero’s Tom Holland and Zendaya are rumored to be members, has secured a £75 million ($101 million) loan from OakNorth to accelerate its London expansion, marking OakNorth’s largest leveraged finance loan to date.
The capital refinances part of Third Space’s existing structure and includes a £25 million capex facility to fund new locations, including Oxford Street, Queen’s Park and Chelsea.
The funding follows OakNorth’s original £38.5 million co-lend in June 2023. Since the initial round, Third Space has expanded to 13 clubs across London, serving more than 42,000 members and reports that revenues have risen more than 90% since 2022.
“This transaction marks another important milestone for Third Space as we scale across London,” Third Space CEO Colin Waggett said. “OakNorth has been a consistently supportive and engaged partner – quick to understand our model, agile in execution and committed to our long-term vision. With their support, we’re well-positioned to bring the Third Space experience to even more communities.”
Third Space members enjoy a high-end fitness experience. Clubs feature performance-driven training spaces like The Yard for multi-functional workouts, dedicated zones for HIIT, cycling, Reformer Pilates, strength and conditioning and combat, along with personal training, nutrition services, saunas, steam rooms and advanced recovery tools including Normatec boots and Hyperice massage guns.
Select sites go further with amenities such as hydropools, cryotherapy, ice baths and sports medicine. At Canary Wharf, a newly-launched Hyrox Training Space offers a race-day-style setup for hybrid athletes in training.
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Deepesh Thakrar, managing director of debt finance at OakNorth, said the fitness group has outperformed expectations since the bank’s first financing, including revenue, EBITDA and member growth.
“We backed Third Space in 2023 based on the strength of the management team, brand and strategy – and they’ve since exceeded every benchmark with waiting lists at every one of their sites,” Thakrar said.