Several of Britain's largest public sector pension funds are in advanced talks to acquire a significant stake in the holiday resort operator Center Parcs. This move aligns with the Treasury's intensified campaign to encourage institutional investment in UK-based assets.
Pension Giants Enter Negotiations
According to reports, the negotiation stage involves a consortium of major pension bodies. The Greater Manchester Pension Fund (GMPF), the London-based Local Pension Partnership (LPPI), and the Edinburgh-based Lothian Pension Scheme are all understood to be involved.
The discussions centre on the funds taking a collective slice of between 15 per cent and 20 per cent of the £4.5bn holiday group. Sky News reported that the Universities Superannuation Scheme (USS), which manages pensions for university lecturers, has also been part of discussions, though its final participation remains uncertain. Sources emphasise that no deal has been finalised at this stage.
Reeves's Push for Domestic Investment
This potential investment comes as Chancellor Rachel Reeves actively promotes a policy of directing UK pension capital towards domestic projects and companies. In May, the Treasury launched the Mansion House Accord, a voluntary agreement with 17 major workplace pension providers designed to unlock £50bn for investment in UK assets.
The talks with Center Parcs represent a tangible example of this strategy in action, aiming to boost the UK economy by leveraging the vast capital held by pension schemes.
Recapitalisation and Scottish Expansion
The stake sale is part of a broader recapitalisation of Center Parcs by its Canadian owner, Brookfield. It is also reported that the Chinese sovereign wealth fund China Investment Corporation, an existing investor, could inject more capital into the group.
This financial manoeuvring coincides with a major expansion for the holiday firm. Earlier this month, the Scottish Borders Council’s planning committee approved proposals for a new £450m Center Parcs holiday village in Scotland.
The development, to be located approximately three miles north of Hawick and 55 miles south of Edinburgh, will feature:
- 700 lodges
- Newly created lochs and woodland
- An indoor swimming complex and health spa
- Extensive outdoor activities, shops, and restaurants
This will be the first Center Parcs site in Scotland, marking a significant milestone for the brand's growth within the UK.
