Brookfield Property Partners LP agreed to buy resort operator Center Parcs from Blackstone Group LP for a price that people familiar with the matter said last week is about 2.4 billion pounds ($3.7-billion).
The acquisition of the parent company of Center Parcs is due to be completed by the end of July, according to a statement on Tuesday. The purchase price wasn't disclosed. Center Parcs U.K. Group runs five resorts in the U.K. that include hotels and countryside activities from sailing to swimming.
Brookfield's offer exceeded bids from others, including groups led by Canada Pension Plan Investment Board and CVC Capital Partners, the people with knowledge of the matter said. They asked not to be identified discussing private information.
Center Parcs U.K., separate from Center Parcs Europe, had average occupancy levels of about 97 per cent at its resorts over the last five years, according to the statement. The company reported revenue of 314.6 million pounds in the year to April 2014, its annual review showed.
Reports of takeover bids for Center Parcs have circulated since last year and Blackstone rejected an offer from BC Partners in December, according to people with knowledge of the matter. The resort company in March said it was considering "strategic and financing options which may include private or public equity or debt capital markets."
Other reported bidders for the company, in partnership with CPPIB or CVC, were GIC Pte., Starwood Capital Group, and KSL Capital.
Brookfield already has resort properties in its portfolio including the Atlantis Paradise Island Resort in the Bahamas and the Hard Rock Hotel and Casino in Las Vegas.
Rothschild, Bank of America Merrill Lynch and Morgan Stanley advised Blackstone.