Center Parcs' owner draws nearly £40 million
PRIVATE equity giant Blackstone has drawn its first dividend from Center Parcs after the holiday chain it bought in 2006 benefited from “staycationing”.
The US firm claimed nearly £40 million in the year to April 2009 after forgoing dividends for two years to
invest in the business.
Between 2007 and 2009 Blackstone spent about £150 million refurbishing the restaurants and holiday homes at Center Parcs’ four forest villages in Cumbria,
Nottinghamshire, Suffolk and Wiltshire, challenging the public perception that private equity involves asset-stripping.
Blackstone’s payout comes at the end of a year that saw Center Parcs buoyed by the trend for staycationing, where British families opted to treat themselves in the UK rather than abroad to save money during the recession.
Rising visitor numbers helped boost revenues 8.8 per cent to £277 million for the year ending April 2009, with pre-tax profits up 40 per cent to £37 million.
However, chief executive Martin Dalby struck a cautious note. In accounts filed at Companies House he said: “Clearly the economic environment remains extremely challenging.”
