Center Parcs: £4bn deal back in spotlight as frontrunners for British resorts firm bail
The £4bn deal to buy British holiday resorts firm Center Parcs is back in the spotlight after two frontrunners for sale have reportedly dropped out of the race.
Its Canadian owners, Brookfield, put the six strong holiday village up for sale in May, with the sale sparking interest from a flurry of private investment firms including CVC and Blackstone.
The pair were said to be going neck to neck in efforts to acquire the leisure business, with first-round bids due towards the end of June, however sources close to the deal have now told The Times that both parties have withdrawn.
Specialist real estate investor is also said to have withdrawn from the race.
Other interested parties, KSL Capital Partners, the private equity firm and GIC, Singapore’s sovereign wealth fund, are reported to be still in the race.
Its understood that the second round of bids is ongoing.
One source told The Times that the issue was there was “no juice” to entice buyers.
They said: “There’s not a lot to do to drive value and you can’t guarantee that you’re going to get a new site. I wouldn’t be surprised if they pulled [the sale] — Brookfield doesn’t need to sell right now.”
Center Parcs operates a cluster of major holiday villages in the UK and Ireland, in counties including Wiltshire, Cumbria and Bedfordshire, it operates at a 98 per cent occupancy rate.
Its owners were hoping to make a hefty profit from the sale after it purchased Centre Parcs for £2.4bn from Blackstone back in 2015.
City A.M has contacted Brookfield, CVC and Blackstone for a comment.