UK's largest private pensions scheme buys Butlins assets for £300m

The UK’s largest private pensions scheme is reported to have bought Butlin’s assets in a £300 million ground rent deal.

Butlin's assets have been sold, according to reports.
Butlin's assets have been sold, according to reports.

Universities Superannuation Scheme (USS) announced the acquisition from Blackstone-owned Bourne Leisure Group on its website.

It was in November last year that US private equity giant Blackstonehad selected investment bankers to conduct an auction this year.

Blackstone appointed Rothschild last autumn to conduct the auction after concluding that Butlin's 'did not fit with the rest of the group'

Lincolnshire World has regularly requested an update on the auction and has been told we will be informed when there is something to announce..

The new transaction covers the three Butlin’s sites at Skegness, Minehead and Bognor Regis.

Sky News has also reported that Blackstone is also holding talks with at least one interested party about the sale of the Butlin’s operating business.

This follows reports in April that Fortress Investment Group and TDR Capital were among parties that had lodged indicative offers for the holiday camps, including Skegness, according to Sky News.

It iwas believed Fortress Investment Group owns Punch Taverns, and TDR Capital, one of the principal shareholders in Asda, had submitted 'indicative offers' for Butlin's in the last few days.

Mike Powell, head of private markets group at USSIM said: “We are very pleased to conclude this acquisition. Butlin’s is a much-loved British insitution and this acquisition represents a siginficant investment in its future whilst providing the long term cashflows that USS needs to pay the pensions promised to our members.”