Former F1 owner enters race to purchase Center Parcs

CVC Capital Partners is ready to make a bid for Center Parcs. CVC Capital Partners was the former owner Formula One.

Private equity firm based in Luxembourg is one of the buyers who are considering the takeover of a British family resort chain.

Center Parcs is a popular destination for more than 2,000,000 visitors per year.

Last month, it was reported that Center Parcs’ owner Brookfield Property Partners appointed investment banks to identify buyers for its UK holiday village.

The Canadian asset manager now seeks between £4bn to £5bn in the sale. It is managed by Bank of America Barclays, and Eastdil Secured.

CVC, the largest private equity fund in the world, sold Formula One, a US-based group, to Liberty Media, in 2017. The company currently owns stakes in both the Women’s Tennis Association and the Six Nations Rugby Union tournament.

Sky News reported that CVC’s offer would come through its Long-Term Strategic Opportunities Investment Fund.

CVC’s Strategic Opportunities Fund, launched in 2014 by CVC, typically holds investments in low risk companies for six to 15 years before selling them.

CVC has bid for Center Parcs twice, the first time being in 2015 when the company was sold.

CVC has already acquired a majority stake in Away Resorts in 2021 for £250m.

Away Resorts bought rival Aria Resorts in the same year to create a giant holiday park worth PS600m.

After its merger with Coppergreen Leisure Resorts, the operator has added 27 more locations.

Brookfield purchased Center Parcs in 2015 from Blackstone, a private equity firm that owns six holiday villages throughout the UK. The deal was worth around £2.4bn.

CVC is believed to have reached the second round in the 2015 sales process.

Brookfield has built 250 additional lodges since then as part of an upgrade to its facilities and amenities. It has also invested nearly £100m in redeveloping and upgrading the resort’s computer system and website.

Center Parcs last year , however, reported a shortage of workers due to Covid restrictions. This was particularly true for its administration, housekeeping, and leisure roles.

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