UK Pension Funds in Talks to Acquire Stake in £4.5bn Holiday Giant Center Parcs
Public-sector pension schemes including GMPF, LPPI, Lothian Pension Scheme, and USS are currently in negotiations to acquire a 15% to 20% stake in Center Parcs, a holiday company valued at approximately £4.5 billion. However, no final agreement has been reached yet.
The recapitalisation of Center Parcs is expected to conclude in the first quarter of 2026, with some participants potentially opting out. This process is being managed by Bank of America, Barclays, and Eastdil.
Brookfield Asset Management, the Canadian owner of Center Parcs, is leading this recapitalisation and is expected to maintain its majority ownership after refinancing. Additionally, the China Investment Corporation, which is already a shareholder, may increase its investment in the company.
This move aligns with efforts from the UK Treasury to direct pension capital into domestic assets, supported by initiatives such as the Mansion House Accord, which has facilitated around £50 billion from 17 workplace pension providers.
Center Parcs has performed well since the COVID-19 pandemic and currently operates five UK sites along with Longford Forest in Ireland. There is also a £450 million site planned in the Scottish Borders.
The company's history dates back to its founding in 1987 with Sherwood Forest. It was listed on the AIM in 2003, moved to the main market in 2005, acquired by Blackstone in 2006, and subsequently sold to Brookfield in 2015 for about £2.4 billion. The UK and Ireland operations are managed separately from the European business.
