Center Parcs put up for sale for £5bn

Nottinghamshire-headquartered holiday resort chain Center Parcs is up for sale with a £5bn price tag.

Center Parcs’ private equity firm owner, Brookfield, bought the company in 2015 for around £2.4bn – but is looking to offload its asset, according to reports in the Financial Times.

The Center Parcs portfolio includes six holiday villages in the UK and Ireland. Its first, in Sherwood Forest, Nottinghamshire, opened in 1987.

Danni Hewson, head of financial analysis at AJ Bell, said: “Anyone who has ever tried to book a break at Center Parcs during the school holidays will know how popular these ‘villages’ really are. They offer families an action-packed alternative to a week in the Med, though often the price differential might not be quite as palatable as most parents would like.

“During the pandemic Brits rushed to snap up sought after places but even with cash strapped families ditching the extra ‘staycation’ in favour of one holiday, it’s clear by the prices and availability that there’s still more than enough business to go around – so far.

“Although with Center Parcs private equity owner Brookfield said to be sticking up the for-sale signs the big question investors will be asking is can that demand continue? The UK economy has pretty much flat lined and living standards of those middle classes are set to be further eroded by rising mortgage costs.

“It will be quite the test, especially with the price tag said to be attached to the deal. But the travel sector has boomed despite concerns about the consumer and if some would be sun worshippers have to trade down, these well kitted out cabins in the woods could still be the perfect alternative.”

Canadian private equity firm Brookfield recently bought the Wilko distribution centre in Worksop in a deal worth £88m.

The company first raised the issue of a sale of Center Parcs in April last year, when it was said to also be looking at an IPO.