Brookfield Asset Management is reportedly recapitalizing Center Parcs at a valuation of around £4.5 billion (approximately $5.7 billion). This comes after an attempted full sale in 2023, where Brookfield sought up to £5 billion, but ultimately called off the sale as bids did not meet their expectations, with the highest offer reportedly around £3.7 billion. The current strategy involves selling a minority stake, estimated at 15-20%, to a consortium of UK public-sector funds, including the Greater Manchester Pension Fund, Local Pensions Partnership, and Lothian Pension Fund.
This move allows Brookfield to retain majority ownership and control of Center Parcs, which they acquired from Blackstone in 2015 for approximately £2.4 billion. The recapitalization is described as a deliberate and less urgent approach compared to a full sale, aiming to bank some value and spread ownership. Center Parcs has shown strong performance post-pandemic, with steady demand, price increases, and continued growth across its UK and Ireland estates.
The new investors, primarily pension funds, are attracted to Center Parcs' stable and predictable business model, which aligns with their long-term investment horizons. While they will have a seat at the table and a say in major decisions, Brookfield will continue to manage the operations. This recapitalization is expected to be finalized in early 2026, marking a strategic rebalancing for Center Parcs rather than a dramatic change in ownership or direction. Australian investment firms are also reportedly involved in bringing in fresh capital for the recapitalization. The valuation of £4.5 billion is seen as settled, reflecting the business's consistent performance and established market position.
