Several of the United Kingdom's largest public sector pension funds are reportedly in discussions to purchase a substantial minority stake in the holiday park operator Center Parcs, which is owned by Canadian investment giant Brookfield Asset Management.
Pension Funds in Negotiations
According to a report from Sky News, the funds involved in the talks include the Greater Manchester Pension Fund, the London-based Local Pension Partnership, and the Lothian Pension Scheme from Edinburgh. The discussions are focused on the acquisition of a stake between 15 and 20 per cent of the company.
These negotiations form part of a broader recapitalization effort for Center Parcs being orchestrated by its Toronto-based owner, Brookfield. Following this refinancing, Brookfield is expected to retain its position as the majority owner of the holiday park group.
Deal Valuation and Timeline
The refinancing process is set to value Center Parcs at approximately £4.5 billion. The company operates five resort villages across the UK and one at Longford Forest in Ireland. The report indicates that the refinancing deal is anticipated to be finalized in the first quarter of 2026.
Other potential investors may also join the transaction. China Investment Corp., the Chinese sovereign wealth fund that already holds an existing stake in Center Parcs, is considering injecting additional capital. Furthermore, the Universities Superannuation Scheme (USS) had been involved in preliminary talks, though it remains uncertain whether it will be part of the final investor syndicate.
Strategic Move for Pension Funds
This potential investment represents a significant move by UK pension funds to diversify their portfolios with a stake in a well-established leisure and hospitality brand. Center Parcs, known for its short-break holiday villages set in forest environments, has proven to be a resilient asset in the tourism sector.
When approached for comment by Sky News, Brookfield and the Universities Superannuation Scheme declined to provide a statement. The other pension funds named in the report could not be reached for comment at the time of the initial publication.
The involvement of major Canadian asset manager Brookfield highlights the ongoing cross-border investment flows between the UK and Canada, particularly in the infrastructure and real estate sectors where Brookfield is a dominant global player.
