The Third Space      

Transaction Background

In July 2007 Graphite Capital backed the £22 million management buy-out of The Third Space, which is one of London’s premier health and fitness clubs. The Third Space opened in June 2001 in the Soho area of London. Its single 40,000 square foot site comprises of a state-of-the-art gym, medical centre and associated retail operations. The strategy is to develop the current site and to add additional London clubs.

Deal Attractions

Graphite has considerable experience of investing in leisure and consumer businesses. The Third Space is a highly regarded operator in the premium segment of the fitness sector. While there has been significant activity in the UK fitness market, the premium fitness segment is less competitive and there is an opportunity to develop a premium London-focused health and fitness group.