Brookfield Nears £4.5bn Center Parcs Stake Sale to UK Pension Group
The deal, which values the holiday village operator substantially higher than its 2015 purchase price, validates the asset manager's capital recycling strategy.
Brookfield Asset Management is in advanced discussions to sell a minority stake in its popular UK holiday village operator, Center Parcs, to a consortium of British pension funds. The deal values the company at approximately £4.5 billion ($5.7 billion) and serves as a key validation of the Canadian investment giant's long-term strategy of acquiring, enhancing, and monetizing assets.
The talks involve a group of prominent local government pension schemes, including the Greater Manchester Pension Fund (GMPF), the Local Pension Partnership (LPPI), and the Edinburgh-based Lothian Pension Scheme. According to a report from Sky News, the funds are negotiating to acquire a combined stake of between 15% and 20%. Brookfield, which currently owns the entirety of the holiday operator, is expected to retain a controlling interest in the business following the transaction, which could be finalized in the first quarter of 2026.
This move represents a strategic pivot for Brookfield after a previous attempt to sell the entire Center Parcs business was paused amidst a challenging corporate debt market. By selling a minority position, Brookfield can realize a significant gain on its investment while continuing to participate in the company's future growth. Brookfield's property arm acquired Center Parcs UK from The Blackstone Group in June 2015 for £2.4 billion, as reported by IPE at the time. The current £4.5 billion valuation demonstrates a substantial appreciation in value under Brookfield's ownership, highlighting the success of its management approach.
The transaction is a textbook example of 'capital recycling,' a cornerstone of the business model for Brookfield (NYSE: BN), which manages over $1 trillion in assets. The strategy involves selling mature, de-risked assets to crystallize returns and redeploying the proceeds into new investment opportunities with higher growth potential. For the global asset manager, with a market capitalization of approximately $104 billion, successfully executing such deals is critical to driving shareholder value and funding its next wave of acquisitions.
Shares of Brookfield have reflected investor confidence in this strategy, trading near the top of their 52-week range at $46.74. Wall Street remains broadly positive on the firm, with a consensus analyst price target of $51.55, suggesting further upside. The firm's ability to consistently generate value from its vast portfolio, which spans real estate, infrastructure, and renewable power, underpins its strong market performance.
For the UK pension funds, the deal offers access to a high-quality asset known for generating stable, inflation-linked cash flows—an ideal match for their long-term liabilities. Center Parcs operates six holiday villages across the UK and Ireland, which have proven to be resilient and popular destinations, consistently reporting high occupancy rates.
As the deal moves toward completion, it will be viewed as a signal of health in the broader M&A market, particularly for high-quality consumer-facing assets. For Brookfield, it marks another successful chapter in its long history of value creation and reinforces its reputation as a leading global alternative asset manager.