Blackstone has begun a £1bn refinancing of Center Parcs, the indoor holiday village business, in order to fund the opening of a fifth UK resort.
The move ends speculation that the US private finance group was going to either sell Center Parcs' property to M&G or launch an IPO as a real estate investment trust.
According to the Sunday Telegraph, Blackstone is injecting further equity to allow it to open a new park in the UK, thought to be near Woburn, Bedfordshire. Discussions with a small syndicate of banks, thought to include the Royal Bank of Scotland, are already believed to be underway.
The move will be seen as a sign of firm support for Center Parcs, which Blackstone has owned for five years.
The refinancing will also involve a restructuring of the company's existing corporate structure, including the creation of two specially created ownership vehicles.