The UK-based holiday resort chain, Center Parcs, owned by Canadian private equity firm Brookfield, may soon see a change in ownership. Brookfield is reportedly considering forming a consortium with the remaining bidders to finalize the sale of Center Parcs, following an extended offer and negotiation period.

The situation has become more urgent as the final deadline for submitting bids passed at the end of July without any formal offers. Private equity firms such as Antin Infrastructure Partners, KSL Capital Partners, and GIC are still believed to be interested in acquiring Center Parcs. However, other firms like CVC Capital Partners, Blackstone, and Aermont have withdrawn from the bidding process.

Center Parcs was put up for sale by Brookfield in May, with an asking price ranging from £4 billion to £5 billion. This is more than double the £2.4 billion Brookfield paid for the chain eight years ago. The sale would be a significant endorsement of the UK’s domestic holiday sector, despite economic challenges and a rise in interest rates.

However, concerns among the bidding companies revolve around the amount of potential growth left in the business. Center Parcs continues to thrive, attracting over two million guests annually across its six existing holiday villages in the UK & Ireland, with an average occupancy rate of 97.1% for the financial year leading up to April.

The current UK sites include locations in Nottinghamshire, the Lake District, Wiltshire, Suffolk, and Bedfordshire. The company is also looking for a site in South East England for a new holiday village.

Sources close to Brookfield have hinted that the sales process, known as ‘Project Redwood,’ could conclude in the coming weeks. If a consortium does not materialize, Brookfield may choose to offload a minority stake or retain the business without a sale.

Barclays, Bank of America, and Eastdil Secured are currently advising the private equity firm on the sale process. The outcome of this sale could have significant implications for the future of the UK’s domestic holiday sector and the growth prospects of Center Parcs.