UK Pension Funds Consider Stake in £4.5bn Center Parcs Recapitalisation
Several UK pension funds, including Greater Manchester Pension Fund (GMPF), LPPI, and the Lothian Pension Scheme, are in talks to acquire a 15-20% stake in Center Parcs as part of a £4.5 billion recapitalisation process. The Universities Superannuation Scheme (USS) is also involved in discussions but it remains unclear if it will be part of the final group of investors. This recapitalisation, expected to conclude by the first quarter of 2026, has not yet resulted in a final deal.
China Investment Corporation (CIC), already a shareholder in Center Parcs, may invest additional capital. Brookfield Asset Management, which initiated the recapitalisation, is expected to remain the majority owner after completion.
This move aligns with the UK Treasury's efforts to direct pension fund capital into domestic assets. The initiative follows the Mansion House Accord, suggesting a possible £50 billion in investments from major workplace pension providers.
Center Parcs operates five UK sites and Longford Forest in Ireland. A new £450 million site in the Scottish Borders has received planning approval. The UK and Ireland operations are separate from the European business. The group originated its first UK site at Sherwood Forest in 1987 and has a history of private equity ownership, including Blackstone's acquisition in 2006 and Brookfield's purchase in 2015 for around £2.4 billion.
The recapitalisation process is being managed by Bank of America, Barclays, and Eastdil. Brookfield and USS declined to comment on the matter, and other funds involved also did not provide comments.
