Aroundtown is exploring the sale of Center Parcs in order to reduce debt, Bloomberg has revealed.
The commercial real estate specialist has hired Eastdil Secured to sell the European resorts, with prospective buyers already invited to a second round of bidding.
According to Bloomberg, the resorts could be worth up to €1.1 billion. Aroundtown bought the seven European Center Parcs sites in 2019 from Blackstone.
Hospitality Investor has approached Aroundtown for comment.
Why it matters
The high cost of refinancing due to high interest rates means some companies are looking into whether to go down the path of taking on additional debt or strategically selling off assets.
Speaking with Hospitality Investor earlier this year, Brien Giuntini, partner, EMEA hospitality debt & structured finance at Cushman & Wakefield advised that companies weigh up the merits of entering into a more complicated structure relative to whether they can plug the funding gap themselves, even if it means making strategic sales. He said: “It may be worth reimagining what your portfolio looks like in five years. There are going to be assets that are better performers, assets that are the must-have mission critical assets for the portfolio, and this is the exercise to save those.”