A UK-based syndicate of private investors called Hotbed has invested in a £23.8m (30.2m euro, US$46.3m) deal to construct and operate a residential health spa in Essex, UK.

Called thelifehouse and located at Thorpe Hall near Colchester, it will be built on 135 acres of parkland and will be completed by late 2009.

According to CEO of Hotbed, Gary Robins, the decision to build a residential facility was made because those spas enjoy high levels of occupancy. Robins said: “The residential spa market is still under-developed in the UK.

“The market offers investors a yield producing, asset backed investment with good potential upside.”

There is already a five-room day spa called The Studio which has been trading profitably from the site since 2001.

Hotbed members have invested £2.3m (2.9m euro, US$4.49m) of the total sum for thelifehouse with the remaining £21.5m (27.3m euro, US$42m) provided as debt funding by Clydesdale bank.

The freehold for the property was acquired in 2000 and full planning permission has been granted.(See Spa Business news 08/03. To order, visit www.spabusiness.com)