Published on : Mon, 31 Oct 2005 17:52GMT
by : Sadat Sayeed

LONDON - Newcastle-based property company Grainger Trust PLC has confirmed that it is in takeover talks with caravan site operator Parkdean Holidays PLC in a deal that could potentially amount to £135 million.

Parkdean had announced on October 12 that it was in talks with a potential suitor but declined to provide any further details. Analysts were speculating that any private equity firms might be behind this offer. More specifically they had hinted that ABN Amro Capital, which has already acquired two caravan businesses this year might be the interested party.

The Sunday Times named Grainger Trust as the group behind the offer. But the company has not been linked with caravan businesses and is known for its dealings in the UK residential properties market. Just last week Grainger had acquired a German residential-property portfolio worth £48.9 million from holidays-to-shipping group, TUI.

“Grainger confirms that it is currently in discussions with Parkdean which may, or may not, lead to an offer for the whole of Parkdean's issued share capital,” the group said in a statement. But analysts are not so sure that Grainger has taken the right approach, Justin Bates at Numis Securities wrote "Initial thoughts are that strategically the potential acquisition seems a strange move for the commercial and residential property investor."