On behalf of Electra Partners, Colliers International has completed the acquisition of holiday parks operator South Lakeland Parks from White Ocean Leisure and its lenders for £47m.
The deal will see Electra Private Equity invest £22m and Investec Growth & Acquisition Finance provide the integrated debt facility.
Founded in 1988, South Lakeland owns and operates nine high-quality holiday parks in the English Lake District and Morecambe Bay area, including two parks bordering Lake Windermere. The acquisition has been made in partnership with Electra's existing portfolio company, Park Resorts, which will manage South Lakeland's parks under a management contract. Operating together, the two businesses create the largest holiday parks operator in the UK with 48 properties across England, Scotland and Wales.
John Rushby, director of sports, parks and marinas at Colliers International, said: "This is a landmark deal for the sector and demonstrates that activity in this area of the property market is now starting to take place on a much larger scale than in previous years. I believe it could mark the start of a number of major transactions which demonstrates the tremendous value and the potential for revenue and capital growth the Parks industry can offer. This portfolio will make a great addition to the Park Resorts estate."
Alex Fortescue, chief investment partner at Electra Partners, said: "Having completed the refinancing of Park Resorts in July, we are now backing its industry-leading team to consolidate what is both a fragmented and resilient sector. We have been interested in South Lakeland for some time due to its high-quality estate which fits well with Park Resorts' existing portfolio.
"This transaction, the latest step in our investment in the holiday parks sector, further illustrates the flexibility of our investment strategy and its suitability to current market conditions. Starting from an initial position in Park Resorts' debt, we now have a controlling position in the largest player in the holiday parks market."