Blackstone in Talks to Buy Continental Center Parcs for €1.1bn - Construction Network Ireland - Construction Network Ireland

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Published in Commercial Property on 04/07/2019

Blackstone in Talks to Buy Continental Center Parcs for €1.1bn

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CNI Editor reports

BLACKSTONE Group is in exclusive talks to sell a portfolio of Center Parcs Europe holiday resorts to German real-estate company Aroundtown, according to people with knowledge of the talks.

The sale does not include the Irish Center Parcs site in Co Longford.

Aroundtown has agreed to pay about $1.1bn for the seven properties – which are operated by Pierre & Vacances SA – they said, asking not to be identified because the negotiations are private. Eastdil Secured LLC is advising on the deal, they said.

A spokesman for Aroundtown wasn’t immediately able to comment. Representatives of Blackstone and Eastdil declined to comment on the matter.

Aroundtown gained as much as 1.6pc in yesterday’s trading in Frankfurt.

The company has a pipeline of hotel and office acquisitions totalling about €1.5bn, of which approximately €1bn will likely be signed this quarter and completed before the end of the year, it said in a trading update on Monday.

Blackstone bought the resorts in Belgium, the Netherlands and Germany for about €630m in 2006 from Pierre & Vacances, which also owns and operates other Center Parcs sites in continental Europe.

The New York-based investment giant committed to invest approximately €200m upgrading the properties earlier this year when the leases were extended.

Blackstone also previously owned Center Parcs UK, a separate company, which it sold to Brookfield Asset Management Inc.

Private equity investors have been pouring into European holiday parks that have traditionally been family owned, cutting costs and improving revenues by adding amenities and appealing to a wider audience.

Brookfield bought Center Parcs UK for about £2.4bn in 2015.

Canadian private equity firm Onex Corp agreed to pay about £1.4bn for the United Kingdom’s caravan park operator Parkdean Resorts a year later. (Bloomberg)