UK Pension Funds in Talks to Acquire Stake in £4.5bn Center Parcs Holiday Giant
Public sector pension schemes Greater Manchester Pension Fund (GMPF), London Pensions Partnership Investment (LPPI), and Lothian Pension Scheme are reportedly in talks to acquire approximately 15% to 20% ownership of Center Parcs. The Universities Superannuation Scheme (USS) is also involved in these discussions.
Center Parcs is currently valued at about £4.5 billion as part of a recapitalisation plan led by Brookfield Asset Management, with the deal expected to complete in the first quarter of 2026. The recapitalisation is managed by Bank of America, Barclays, and Eastdil. Meanwhile, Brookfield is expected to remain the majority owner after the refinancing process.
The China Investment Corporation (CIC), which is already a shareholder, may invest more capital into Center Parcs as part of this recapitalisation. The Treasury’s policy aims to channel more British pension fund capital into UK assets, a goal that aligns with this transaction.
Center Parcs operates five UK sites and the Longford Forest site in Ireland. Additionally, a new £450 million site in the Scottish Borders has recently won planning permission.
Historically, Center Parcs was listed on the AIM market in 2003 and moved to the main market in 2005. It was acquired by Blackstone in 2006 and later sold to Brookfield in 2015 for approximately £2.4 billion. The UK and Ireland operations are managed separately from the European business. Colin McKinlay currently serves as CEO.
Brookfield and USS declined to comment on the ongoing discussions, and other pension funds involved were not available for comment.
