Some of Britain's largest public sector pension funds are in advanced discussions to purchase a major stake in the holiday park operator Center Parcs, in a deal that would value the leisure giant at approximately £4.5 billion.
Pension Powerhouses Enter Negotiations
Sky News has learned that a consortium of significant retirement schemes, including the Greater Manchester Pension Fund (GMPF), the London-based Local Pension Partnership (LPPI), and the Lothian Pension Scheme from Edinburgh, are involved in talks. They are negotiating to buy between 15% and 20% of Center Parcs.
The GMPF, part of the Northern LGPS, is the UK's biggest local government pension scheme, managing over £30 billion for more than 430,000 members. Sources also indicate the Universities Superannuation Scheme (USS), which manages pensions for university lecturers, has been part of discussions, though its final participation remains unclear.
Deal Driven by Treasury Ambitions
This recapitalisation process has been initiated by Center Parcs' current majority owner, Canadian investment firm Brookfield Asset Management. The move aligns with the UK Treasury's push, championed by Chancellor Rachel Reeves, to see more domestic pension capital invested in British assets. The Mansion House Accord aims to unlock £50 billion from major pension providers for UK investment.
Insiders suggest the existing shareholder, the China Investment Corporation sovereign wealth fund, may also invest additional capital. Brookfield is expected to retain majority ownership after the deal concludes, which is anticipated in the first quarter of 2026. Bankers at Bank of America, Barclays, and Eastdil are managing the process.
A Resilient British Leisure Brand
Center Parcs has proven to be a robust performer, enjoying strong trading since the COVID-19 pandemic lockdowns. The company, led by CEO Colin McKinlay, operates five UK villages and one in Ireland at Longford Forest, attracting millions of visitors annually with its mix of family activities and upmarket spa offerings.
The business has a long history in the UK, opening its first site at Sherwood Forest in 1987. It was publicly listed before being taken private by Blackstone in 2006 and later sold to Brookfield in 2015 for around £2.4bn. The group recently secured planning permission for a new £450 million site in the Scottish Borders, signalling continued expansion. A previous sale attempt by Brookfield stalled in 2023.
When contacted, Brookfield and USS declined to comment. The other pension funds involved in the talks could not be reached for a statement.
