UK short-break destination company Center Parcs, has been bought by commercial real estate firm Brookfield Property Partners…

A Brookfield-managed fund has agreed to acquire Center Parcs UK for an undisclosed amount of money from funds managed by Blackstone’s private equity and real estate businesses.

The transaction is set to complete by the end of next month.

“To date, Brookfield Property Group’s investment activity in the UK has focused primarily on the office and logistics market; however, our global portfolio has always encompassed a broader mix of asset types including property deriving its returns from leisure activities,” commented Ric Clark, Chief Executive Officer of Brookfield Property Group.

“Center Parcs’ villages are high-quality, popular short break destinations for friends and families, with loyal guests and outstanding service.”

UK occupancy levels have averaged approximately 97% over the last five years, and company expects to welcome over two million guests this year.

“Although these resorts are already producing steady streams of cash flow supported by nearly full occupancy year-round, we see compelling opportunities to grow the business and enhance our investment returns,” said Ric.

Center Parcs operates in Nottinghamshire, Suffolk, Wiltshire, Cumbria and Bedfordshire and each destination includes 400 acres of protected and enhanced woodland.

“Having bought Center Parcs in 2006 and invested in its growth, it has been an excellent investment for us,” added Gerry Murphy, Chairman of The Blackstone Group International Partners LLP.

“We are sure that it will go on to even greater success under excellent new ownership. The management and employees of Center Parcs are outstanding and will take the business onto a new chapter in its story.”

Martin Dalby, Chief Executive of Center Parcs, added: “From the first time we met, Brookfield has demonstrated a real understanding of our business and I am absolutely convinced that we can work together to achieve our strategic goals. 

“I believe the future of Center Parcs is in very good hands with Brookfield,” Martin concluded.