Brookfield Property buy Center Parcs
British-based holiday resort group Center Parcs has been bought by US-listed company Brookfield Property Partners, after previous owner Blackstone opted to sell the company rather than float it.
Blackstone, the private equity firm which had owned Center Parcs since 2006, was in February reported to have hired two investment banks to prepare Centre Parcs for a potential London listing.
Center Parcs is investing €200m to develop its first Irish resort in Co Longford. Brookfield said yesterday that one of its funds had agreed to acquire Center Parcs for an undisclosed sum, in a deal expected to complete in July. Media reports previously said Blackstone had rejected a £2bn (€2.75bn) bid for Center Parcs from another bidder. Center Parcs runs five holiday resorts in British forests, offering activities ranging from badminton to horse riding alongside spa packages.
Brookfield Property Group's chief executive Ric Clark said the acquisition was a departure from his firm's past focus in Britain on office and logistics-related investments.
"Although these resorts are already producing steady streams of cash flow supported by nearly full occupancy year-round, we see compelling opportunities to grow the business and enhance our investment returns," he said in a statement.
Rothschild, Bank of America Merrill Lynch and Morgan Stanley acted as advisers to Blackstone.