UK Pension Funds Eye Stake in £4.5bn Holiday Giant Center Parcs
Some of Britain's largest public sector pension schemes are in talks to take a stake in Center Parcs as its Canadian owner finalises a recapitalisation of the holiday parks giant. Sky News has learned that bodies including the Greater Manchester Pension Fund (GMPF), the London-based Local Pension Partnership (LPPI), and the Edinburgh-based Lothian Pension Scheme are among those negotiating to buy between 15% and 20% of the company. The GMPF, part of the Northern LGPS, is the UK's largest local government pension scheme, managing over £30 billion and overseeing the retirement savings of more than 430,000 members.
City sources indicate that the Universities Superannuation Scheme (USS), which manages university lecturers' pensions, has also been involved in discussions, though its final involvement is uncertain. Center Parcs is valued at approximately £4.5 billion in this process, expected to conclude in Q1 2026. The Chinese sovereign wealth fund, China Investment Corporation, a current shareholder, may invest more capital into the leisure group, according to insiders. This process, initiated by Brookfield Asset Management, Canada's owner of Center Parcs, aligns with the Treasury's goal of increasing British pension funds' investment in UK assets.
Rachel Reeves, the Chancellor, claimed in May that the Mansion House Accord would unlock £50 billion from 17 major workplace pension providers for UK-based investments. Brookfield is expected to retain majority ownership post-refinancing. Center Parcs has thrived since the COVID-19 pandemic lockdowns, boasting one of the British leisure industry's best-known brands. Its resorts attract millions of visitors annually to its five UK sites and the Longford Forest site in Ireland. The company recently secured planning permission for a new £450 million site in the Scottish Borders, offering a mix of adventure and leisure activities for families.
Center Parcs, founded in 1968 in the Netherlands, has a rich history. Run by CEO Colin McKinlay, the company's shareholders have received substantial dividends since Brookfield's acquisition. Center Parcs owns resorts in Cumbria, Nottinghamshire, Wiltshire, Suffolk, Bedfordshire, and Ballymahon, Ireland. A previous sale attempt by Brookfield in 2023 was unsuccessful. The recapitalisation process is managed by bankers at Bank of America, Barclays, and Eastdil. Brookfield and USS declined to comment, while other pension funds involved in talks were unreachable for comment.
