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M&G set to buy Center Parcs property assets

Fund manager M&G is in talks to buy the property assets of holiday business Center Parcs.


 


M&G is in talks with US private equity group Blackstone to take a majority stake in a new fund being set up to hold the leisure business’s £1.4bn of property.


 


EG revealed Blackstone’s plans to launch a sale of a circa 75% stake in the portfolio in March.


 


The new fund will offer investors fixed bond-like income generated from Center Parcs’ underlying cashflow. Income is expected to be index-linked and over a term of 20-25 years.


 


Blackstone bought the Center Parcs operating company for £205m in March 2006. Later that year, it paid Royal Bank of Scotland and Hugh Osmond’s investment vehicle Sun Capital Partners £900m for the properties it operated in Whinfell Forest, Cumbria; Elveden Forest, Suffolk; Longleat, Somerset; and Sherwood Forest, Nottinghamshire.


samantha.mcclary@estatesgazette.com


 

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