Introduction to Center Parcs’ Recapitalization
Some of Britain’s largest public sector pension funds are negotiating a stake in Center Parcs as its Canadian owner completes a recapitalization of the holiday park giant. The Greater Manchester Pension Fund (GMPF), London-based Local Pension Partnership (LPPI), and Edinburgh-based Lothian Pension Scheme, among others, have been in negotiations to buy 15% to 20% of the company.
Pension Funds Involved
The GMPF, which is part of the Northern LGPS, is the largest local government pension scheme in the UK, managing well over £30 billion and responsible for the retirement savings of more than 430,000 members. City sources said this weekend that the Universities Superannuation Scheme (USS), which manages the pensions of university lecturers, was also involved in the discussions, although it was unclear whether it would be part of the final support consortium.
Valuation and Recapitalization Process
Center Parcs will be valued at around £4.5bn as part of the process, which is expected to be completed in the first quarter of 2026. A deal has not yet been finalized, and some of the pension funds that have been exploring a deal may choose not to participate, according to sources.
Existing Shareholders and Investment
According to insiders, the Chinese sovereign wealth fund China Investment Corporation, which is already a shareholder in Center Parcs, could invest more capital in the leisure group. The process, launched by Center Parcs’ Canadian owner Brookfield Asset Management, would reflect a push by the Treasury to invest more capital from British pension funds in British assets.
Business Performance and Expansion
Center Parcs has enjoyed strong business performance since the lockdowns caused by the COVID-19 pandemic and has one of the best-known brands in the UK leisure industry. Its resorts attract millions of visitors annually to its five UK locations and the latest addition to its portfolio, Longford Forest in Ireland. The company recently received planning permission to build a new £450 million site in the Scottish Borders.
History and Operations
Center Parcs has historically been a listed company, listing on London’s junior AIM market in 2003 before listing on the main stock exchange two years later. It was then acquired by private equity firm Blackstone in 2006 before being sold to Brookfield in a deal valued at £2.4 billion in 2015. Center Parcs’ operations in the UK and Ireland are separate from the European business, which also operates under the brand.
Leadership and Shareholders
Led by CEO Colin McKinlay, Center Parcs shareholders have received hundreds of millions of pounds in dividends since Brookfield bought the company. It owns resorts in Cumbria, Nottinghamshire, Wiltshire, Suffolk, and Bedfordshire, as well as the Longford Forest site in Ballymahon, Ireland. A previous attempt by Brookfield to sell the company failed in 2023.
Recapitalization Process Management
Center Parcs’ recapitalization process is being managed by bankers from Bank of America, Barclays, and Eastdil. Brookfield and USS declined to comment, while none of the other pension funds that have discussed a deal could be reached for comment.
