French real estate investment company ANF has completed the EUR 471 mln acquisition of 159 hotels from B&B, France's third largest budget hotel group. B&B will continue to manage the hotels after signing a 'triple net' lease for an initial global rent of EUR 27.3 mln. Leases are for an initial 12 year-period and will be twice renewable at the request of B&B. Renewed rents will be calculated as a margin on the 3-year average sales, limited to a 115% increase of the last year's indexed rent.

French real estate investment company ANF has completed the EUR 471 mln acquisition of 159 hotels from B&B, France's third largest budget hotel group. B&B will continue to manage the hotels after signing a 'triple net' lease for an initial global rent of EUR 27.3 mln. Leases are for an initial 12 year-period and will be twice renewable at the request of B&B. Renewed rents will be calculated as a margin on the 3-year average sales, limited to a 115% increase of the last year's indexed rent.

Meanwhile, ANF said it has also signed a partnership agreement with B&B, for an investment of about EUR 58 mln over a 3-year period. The partnership will allow ANF to participate in the development of the hotel chain, on the understanding that B&B will pay additional rent.

ANF said the transaction would be financed with EUR 300 mln from a recent capital increase, with the balance being covered by bank debt. Part of the Eurazeo group, ANF is listed on Euronext Paris and holds France's SIIC (real estate investment trust) status.