Universities Superannuation Scheme’s investment arm has closed a ground rent deal for Butlin’s holiday camps with Blackstone-owned Bourne Leisure Group, for around £300m.
USS, which is the UK’s biggest pension fund, has bought into the holiday camp operator’s three sites at Skegness, Minehead and Bognor Regis (pictured). The deal will not affect Butlin’s’ day-to-day operations or ownership.
The acquisition forms part of the pension fund’s strategy to invest in long-dated inflation and nominal income streams aligning with its long-term liabilities.
USS IM said it has a circa £3bn portfolio of private real estate and credit assets, with ambitions to grow this portfolio “substantially over time”.
Mike Powell, head of private markets group at USS IM, said: “Butlin’s is a much-loved British institution, and this acquisition represents a significant investment in its future while providing the long-term cashflows that USS needs to pay the pensions promised to our members.”
Cushman & Wakefield advised USS, while Eastdil acted for Blackstone.
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