FdM-led consortium buys B&B hotel portfolio for EUR 508m

Foncière des Régions' hospitality arm Foncière des Murs has teamed up with Crédit Agricole Assurances and Assurances du Crédit Mutuel to acquire a portfolio of 165 B&B hotels in France for EUR 508 mln, excluding transfer duty. The vendor is French REIT ANF Immobilier.

The transaction will be carried out via an OPCI mutual property fund held by Foncière des Murs (50.2%), the Crédit Agricole Assurances Group (40%) and Assurances du Crédit Mutuel (9.8%). The deal reflects a yield (excluding tax) of 6.9%.

The portfolio carries leases with a seven-year residual term and secured, indexed fixed rental income.

B&B will retain ownership of the goodwill and management of the hotels, which are in the 2-star segment and offer a total of 12,000 rooms.

'This new transaction will enable Foncière des Murs to position itself as the preferred contact for B&B, particularly in terms of providing support for B&B’s development projects,' the Paris-listed group said in a statement.

The deal fits in with the diversification strategy of the Crédit Agricole Assurances Group and Assurances du Crédit Mutuel in a promising sector that offers high yields, the partners added.

Foncière des Murs will be responsible for the asset management of the portfolio. The company owns roughly EUR 3 bn of assets.

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