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Butlins Skegness, Minehead, and Bognor Regis have been sold in a deal worth £300m
After a year of uncertainty, Butlins has now been sold as part of a deal worth £300m. However, the deal does not include the business and only includes the real estate of the three sites which include Skegness, Minehead, and Bognor Regis.
Three sites are said to have been snapped up a ground rent by the Universities Superannuation Scheme, which is the UK’s largest private pension scheme. The original plans were to sell the real estate and business as one but this practice of selling the real estate is not uncommon. Tesco and Morrisons have gone down the same route of selling the real estate of their businesses to raise capital.
The actual Butlins business where the first-holiday camp was launched in Skegness is still up for sale. Some experts believe it could fetch as much as £700m with the domestic holiday boom. There are already interested parties to buy the holiday business which includes Queensgate Investments.
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.”
Butlins which is owned by Bourne Leisure could be sold this year if enough interested parties come forward. Bourne Leisure was bought out by Blackstone, an American private equity company, in 2021.
It is thought that Blackstone wants to concentrate on the Haven caravan park sector of the business where they have made huge investments. A recent investment was the upgrade of Thorpe Park in Cleethorpes and also the purchase of a new caravan park in Skegness.
