Brookfield reportedly tears up £4bn Center Parcs sale over investor jitters
Brookfield has reportedly scrapped its proposed £4bn sale of Center Parcs, the British outdoor-lovers resort, amid weak investor confidence in the UK’s leisure sector.
Canadian private equity group Brookfield halted plans to offload the entire business of six UK and Ireland holiday parks as rising interest rates and inflation prompt investors to second-guess themselves, according to the Financial Times.
Brookfield is understood to still be considering selling a minority stake or recapitalising Center Parcs.
It will be a disappointment to the owner of Center Parcs, eyeing up a chunky profit from the sale after it purchased the group for £2.4bn from Blackstone back in 2015.
The firm put the six strong holiday village up for sale in May, initially sparking interest from a flurry of private investment firms including CVC and Blackstone. But it failed to secure formal bids before a July deadline.
In summer it was reported that the two frontrunners for the sale dropped out of the race.
Despite Center Parcs’ successful performance with over 90 per cent occupancy of its family-friendly attractions like water parks and forest playgrounds, concerns arose regarding further growth prospects.
Investors grew even more worried when Brookfield ditched plans for a seventh holiday park due to poor environmental conditions.
City PM contacted Brookfield for a comment.