AS THE world waits for a new Pope, the Vatican is answering questions over a $29 million investment in a building that's home to the most prominent "gay sauna" in Europe.

The Europa Multiclub is located within an apartment block in Rome, in which the Vatican has just bought itself a stake worth 23 million Euros.

There are nineteen Vatican apartments in the building, including one owned by Cardinal Ivan Dias.

The 76-year-old Cardinal will attend the Papal election at the Sistine Chapel.

He has previously described gay and lesbian people as having "unnatural tendencies".

The La Repubblica newspaper claimed: "Italy's best known gay sauna in the premises is an embarrassment".

Pope Benedict XVI became the first Pope since the 15th century to quit his post, when he resigned last month.

La Repubblica claimed the Pope's resignation followed a report into gay sex and corruption in the Vatican.

Originally published as The Vatican's stake in Europe's biggest gay spa