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A number of Britain’s biggest public sector pension schemes are understood to be eyeing a stake in the holiday giant Center Parcs after the Treasury ramped up its efforts for funds to invest in UK-based assets.
The Greater Manchester Pension Fund (GMPF), the London-based Local Pension Partnership (LPPI) and the Edinburgh-based Lothian Pension Scheme are among bodies involved in the negotiation stage, according to Sky News.
Talks have included the pension schemes taking a slice between 15 per cent and 20 per cent of the £4.5bn holiday giant.
Sky has reported that this weekend the Universities Superannuation Scheme (USS) – the manager of university lecturers’ pensions, was involved in discussions, but added it was unclear whether it would be part of the final syndicate of backers.
No deal is yet to be finalised.
As part of Center Parcs’ recapitalisation by its Canadian owner, the Chinese sovereign wealth fund China Investment Corporation, which already holds a slice of Center Parcs, could pump more cash into the holiday group, insiders said.
Reeves eyes pensions to power UK assets
It comes as Chancellor Rachel Reeves pushes for UK pension funds to invest into assets based on the home front.
In May, the Treasury introduced the Mansion House Accord, a voluntary scheme with 17 major workplace pension providers which aims to unlock £50bn in capital for UK assets.
Earlier this month, proposals for the construction of a new £450m Center Parcs holiday village was given the green light by the Scottish Borders Council’s planning committee.
A total of 700 lodges are to be built at the site approximately three miles north of Hawick and 55 miles south of Edinburgh, as well as newly created lochs, nature trails and a woodland.
The development will also feature an indoor swimming complex, a health spa, outdoor activities, shops and restaurants.
