The site of the Butlin's resort in Skegness has reportedly been bought along with two others as part of £300 million deal. A ground rent deal has been agreed for the East Coast attraction, as well as branches of the leisure chain in Somerset and Bognor Regis.
According to the financial newspaper City AM, the Universities Superannuation Scheme, the UK's largest private pension scheme, has acquired the real estate sites. This means the firm will now effectively become Butlin's' landlord, Somerset Live reports.
Butlin's - the wider holiday park business - is still up for grabs after being put on sale by its current owners last year. Analysts expect the Butlin’s brand to fetch some £700m amid a domestic holiday boom in the UK post-pandemic.
Read more: Huge queues for Skegness trains from Nottingham Station as school holidays begin
Speaking to City AM, head of private markets at USS Investment Management Mike Powell said: "We are very pleased to conclude this acquisition. Butlin’s is a much-loved British institution and this acquisition represents a significant investment in its future whilst providing the long-term cashflows that USS needs to pay the pensions promised to our members."
The three Butlin's camps are currently owned by Bourne Leisure. Blackstone, an American private equity company, purchased Bourne Leisure in 2021 but is looking to offload the Butlin's part of the business.
Blackstone is reportedly looking to "reshape its Bourne leisure parks arm" as it assesses the future of the business. It is also reported that Bourne Leisure and Blackstone are said to have decided that Butlin's is "sub-scale and therefore non-core to its growth plans".
Sky News is reporting that Queensgate Investments, a property investor behind a portfolio of five-star London hotels, is said to be among the suitors for the holiday brand. It has reportedly joined a trio of rivals in the race to buy Butlin's from Bourne Leisure - Bain Capital, Epiris and Asda's parent company TDR Capital.
It has been reported the Butlin's chain will require "significant investment" to modernise its three camps heading forward. It is understood the signature "skyline" tents at all three resorts need to be replaced.
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