The resort firm runs centres across the UK

Center Parcs UK, owned by private equity firm MidOcean Partners, is being taken over by a group of fund managers, but will eventually be floated on London's Alternative Investment Market, according to the Sunday Times.

Around 25 institutional investors have already agreed to take shares.

Center Parcs UK currently has four holiday parks in the UK at Elveden Forest in Suffolk, Longleat Forest near Bath, Oasis Whinfell Forest in the Lake District and Sherwood Forest near Nottingham.

Popular concept

The operation has around 3,100 villas and apartments and had about 1.2 million guests and turnover of around �166m from 2001-02.

The firm employs about 4,000 full and part-time staff.

MidOcean has already sold its 50% stake in Center Parcs Europe - the operator of holiday parks in the Netherlands, France, Belgium and Germany - for �189m.

The company, formed by the managers of DB Capital Partners, is based in New York and London and manages around �1.8bn in private equity assets.

The Center Parcs concept of leisure parks located in forest areas dates back to 1968, although it was not until 20 years later that its first UK park opened at Sherwood Forest.

Scottish & Newcastle owned the business from 1989 until 2001.