Brookfield is trying to put together a consortium to buy its Center parcs business, according to the Financial Times, in a move that reflects the challenge nature of the M&A market.
The newspaper reported that the remaining three bidders — GIC, Antin Infrastructure Partners and KSL Capital Partners — were scheduled to put in second-round bids by the end of July but that no formal offer had been made.
Brookfield is now looking to fashion some type of grouping between the various interested parties to get a deal over the line.
It’s unlikely that the potential buyers have any concerns over the business itself. The company has a 97.1 per cent occupancy rate across its portfolio of six parks and has a sizeable chunk of assets.
The problem is probably more on the financing side as well as the potential to make money on any future sale. Brookfield was looking for around £4 billion, having paid £2.4 billion in 2015.
Brookfield and KSL declined to comment. Hospitality Investor has also reached out to Antin Infrastructure Partners and GIC.