Universities Superannuation Scheme, the UK’s largest private pension scheme by way of assets, has acquired the real estate assets of the holiday resort operator Butlin’s for approximately £300 mln (€354 mln) from the Blackstone-owned Bourne Leisure Group.
USS has, via its in-house private markets team at USS Investment Management (USSIM), acquired the underlying real estate interest of the three Butlin’s sites at Skegness, Minehead and Bognor Regis, in what will be a long-term investment for the scheme.
Said Mike Powell, head of private markets group at USSIM: '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.'
This transaction continues USSIM’s strategy of investing in long-dated inflation and nominal income streams that are aligned with USS’s long term liabilities.
To date, USSIM has built a £3 bn portfolio of private real estate and credit assets. The firm said it had ambitions to grow this portfolio substantially over time.
Gowling and Cushman & Wakefield advised USS and Eastdil and DLA advised Blackstone.