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Center Parcs could go on the block: Sky News
Posted on Wednesday, 09 October 2019 13:47
UK holiday park operator Center Parcs could be put up for sale, according to Sky News.
Without identifying its sources, the broadcaster said Brookfield Property Partners is in the process of appointing advisors to conduct a strategic review, which could lead to a GBP 3.00 billion sale of the business.
City sources told Sky News that an initial public offering was also one option being considered, but cautioned that no concrete decision on the matter has been made as yet, and if a deal does take place, this would not be until well into 2020, at the earliest.
In addition, Brookfield could ultimately decide to hold onto Center Parcs.
Sky News cited one source as saying that the investor had wanted to complete the opening of the group’s Longford Forest site, its first in Ireland, before appointing advisors.
This milestone was passed in July of this year, bringing Center Parcs’ total number of locations to six.
Banking contacts told Sky News that, should a deal go ahead, private equity firms, pension funds and other long-term suitors could be interested.
Brookfield has owned the business for just over four years, having paid USD 1.96 billion to buy it from Blackstone in August 2015.
Blackstone had itself acquired it in May 2006, paying GBP 205.40 million to take the company private via its Forest Bidco vehicle; it was previously publicly traded on London’s Aim market.
Center Parcs has a history dating back more than 40 years, having been established in the Netherlands in 1968.
However, it first entered the UK with the opening of its Sherwood Forest location in 1987 and its UK and Ireland operations are owned separately to the rest of the business.
The company’s sites, which are largely targeted towards families, offer apartment and lodge accommodation set within about 400 acres of natural woodland.
Each location has a wide range of restaurants, cafes and retail outlets, as well as its Subtropical Swimming Paradise and Aqua Sana Spa.
© Zephus Ltd