| Notably... This business owns a lot of forest in the UK. The UK doesn't have much forest. So, they can make themselves appear more valuable by pushing up the price of forest land. Forest land used to be priced based on the lumber value - which is almost nil. There was also the pricing element of the possible agricultural value if it were to be cut down (which is also almost nul, because the land is usually unsuitable for agriculture). There is also the very high value if you were somehow able to build houses on it, but the very low probability of being able to secure permits to do so. However, I have noticed odd real estate transactions in the last ~decade for forest land. Specifically, a few companies have been buying up lots of forest land, dividing it into tiny parcels, often just a few hundred yards in each direction, and selling it for 10x the price. Most don't sell, but a few do - and thats all you need to make the basis of a new market price. Now when you value all of center parcs land, it looks way better!!! And there is a 2nd factor... Center parcs usually get permission to build lodges on their land as temporary forest huts, and since they aren't made for anyone to be resident in, this is normally seen as an okay use of otherwise protected forest. Gradually over many years they can slowly turn it into a brownfield site by trimming out trees. 20 yrs down the line they might get permission to build actual houses on the land. Suddenly it's worth 100x as much. I would 100% not be surprised if center parcs end up making more money by this conversion of forest land to residential (skirting laws designed to protect forests) than they make from decades of running the parks. |