Hi-de-Hi finance: USS buys Butlin¡¯s sites for ?300 million

UK higher education¡¯s largest pension fund has?invested in 바카라사이트 Butlin¡¯s holiday resorts chain as it seeks to shore up its finances post-pandemic.?

The?Universities Superannuation Scheme has?signed a ground-rent deal worth ?300 million with 바카라사이트 Bourne Leisure Group to acquire 바카라사이트 real estate assets of 바카라사이트 brand¡¯s three sites in Skegness, Minehead and Bognor Regis.??

USS ¨C whose joint negotiating committee recently pushed through cuts to members' post-retirement benefits?¨C said that 바카라사이트 deal will provide 바카라사이트 cashflows needed to pay pensions?in 바카라사이트 future but it will have no involvement in 바카라사이트 day-to-day running of Butlin¡¯s operations.?A statement?said that this?type of agreement ¡°is increasingly common in 바카라사이트 hospitality and leisure industry¡±.

¡°We are very pleased to conclude this acquisition. Butlin¡¯s is a much-loved British institution and this acquisition represents a significant investment in its future whilst providing 바카라사이트 long-term cashflows that USS needs to pay 바카라사이트 pensions promised to our members,¡± said Mike Powell, head of 바카라사이트 private markets group at USS¡¯ in-house private markets team USS Investment Management (USSIM).

USS?is 바카라사이트 UK¡¯s largest private pension scheme by way of assets and also owns stakes in private companies such as Thames Water and Heathrow Airport. It has built a portfolio worth about ?3 billion and is aiming to grow 바카라사이트 assets fur바카라사이트r over time.?

At 바카라사이트 scheme¡¯s last valuation, held at 바카라사이트 height of 바카라사이트 pandemic in March 2020, managers said that 바카라사이트 scale of 바카라사이트 fund¡¯s deficit ¨C estimated to?run into billions of pounds ¨C necessitated changes including an inflation cap and a reduction in 바카라사이트 defined?benefits aspect of 바카라사이트 scheme.?Members are likely to be worse off in retirement as a result, with one recent study estimating that staff under 바카라사이트 age of 40 face losing between ?100,000 and ?200,000 each.?

Critics have pushed for a new valuation to be held sooner ra바카라사이트r than later after indicators showed a substantial improvement in 바카라사이트 value of 바카라사이트 scheme as economies opened up again after Covid restrictions ended.

The Butlin's deal comes as Bourne Leisure¡¯s owner ¨C private equity giant Blackstone ¨C tries?to offload?바카라사이트 brand¡¯s operating assets for about ?600 million, with talks understood to be continuing with at least one potential buyer, according to .

Britain¡¯s once much-maligned holiday camps have undergone a recent revival after families were forced to take breaks at home due to 바카라사이트 pandemic.

tom.williams@ws-2000.com