Levant Capital Acquires Warehouse Gym

Levant Capital, a private equity firm, has acquired a majority stake in Warehouse Gym, a premium fitness operator based in the UAE.

The funding is intended to support regional growth, introduce innovative fitness solutions, and expand the wellness services offered by the gym.

Warehouse Gym, founded by Kevin Texeira, Fahad Al Rafi, and Edris Al Rafi, opened its first location in 2013 in a Dubai industrial area, which inspired its name.

The gym's unique selling propositions include street art, design, and music. Each gym focuses on strength training and includes two or three immersive studios, personal training areas, recovery rooms, restaurants, and juice bars.

The company has expanded to 10 clubs and plans to increase this number to 30 locations within the next four years.

Currently, Warehouse Gym serves 50,000 members. The next facility, a 55,000-square-foot space at Dubai Science Park, is set to open by year-end.

This location will feature a gym, group exercise studios, a recovery suite, as well as co-working spaces, private meeting areas, creative suites, a podcast studio, a restaurant, and nutrition services. Five additional sites are scheduled for 2025.

CEO Texeira describes this moment as pivotal for the brand, stating, "Levant Capital’s experience and resources will help us scale new heights and continue providing exceptional fitness experiences to our community.

I'm proud of all we've accomplished and eager about the future.

I believe our partnership with Levant Capital will enhance our members' experiences, support growth, and create opportunities for our employees."

Warehouse Gym attracts a significant number of female members and appeals to younger audiences, even allowing access for those under 16.

The gym emphasizes mental health programs and holistic wellness offerings, including recovery, mobility, and nutrition. It is also a collaborative partner with the global fitness brand Puma.

Al Rafi notes, "The UAE acknowledges the importance of physical, mental, and social well-being, prioritizing health through nationwide fitness challenges and sports events.

We aim to elevate the health experience for our growing member base in the UAE, with innovative expansion plans in partnership with Levant Capital."

Since 2020, the fitness market in the Middle East and North Africa has been growing by 30% annually.

The UAE's market is valued at $550 million, while Saudi Arabia's market is valued at $1.7 billion. Despite the fragmented nature of the market, with mostly independent operators, there is significant growth potential, especially in the premium sector, given the current penetration rates of 7% and 8%, respectively.

Source: healthclubmanagement

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