UK Pension Funds in Talks for Stake in £4.5bn Center Parcs Recapitalisation
Several public-sector pension schemes, including Greater Manchester Pension Fund, Local Pension Partnership, and Lothian Pension Scheme, are in discussions to acquire a 15-20% stake in Center Parcs. The Universities Superannuation Scheme is also involved, though its final participation remains unclear.
Center Parcs, valued at approximately £4.5 billion, is undergoing a recapitalisation process led by Canadian owner Brookfield Asset Management, who is expected to remain the majority owner after the completion of the process, which is anticipated to conclude in the first quarter of 2026. No deal has been finalised yet, and some funds may ultimately opt out.
The Chinese Investment Corporation, already a shareholder, may also inject more capital into the company.
This move aligns with the UK Treasury’s efforts to channel more domestic pension fund capital into UK assets as part of initiatives like the Mansion House Accord, which aims to unlock around £50 billion in investments.
Center Parcs operates five sites in the UK, with Longford Forest located in Ireland, and has recently obtained planning permission for a new £450 million site in the Scottish Borders.
The recapitalisation process is being managed by Bank of America, Barclays, and Eastdil. Brookfield and USS declined to comment, and other funds could not be reached for comment.
