Blackstone prepares Center Parcs Europe portfolio for sale
Blackstone has agreed new long-term leases with the operators of seven Center Parcs Europe holiday resorts in a move seen as preparing the real estate portfolio for a potential sale.
The US group will invest €200m in upgrading the sites in the Netherlands, Belgium and Germany, according to a statement from the operator, Center Parcs, which is part of the Euronext-listed Pierre & Vacances group, headquartered in Paris.
The leases, which each still had three to four years to run, have been extended by an additional 15 years each and the rents increased, in a move that adds to the saleability of the properties, according to a person briefed on the deal.
Blackstone acquired the resorts in 2006 for a reported €630m, then worth £434m. The private equity group, which is the world’s largest real estate investor, also bought Center Parcs UK, a separate business, the same year and in 2015 sold it on to the Canadian group Brookfield.