FDM Management, the recently created hotel joint venture of Foncière des Régions and a group of institutional investors, has secured two portfolio of hotels in Germany, France and Belgium for a total investment of €936 mln.
The JV said the deal increases its overall portfolio to more than €1.1 bn with an expected full-year revenue of €210 mln and a loan to value of 50%. FDM Management is 40% owned by FdR's Foncière des Murs and 12% by investors ACM Vie, BNP Paribas Cardif, Caisse des Dépôts, Crédit Agricole Assurances and Société Générale Insurance.
In Germany the firm has signed a preliminary purchase agreement for a portfolio comprising nine hotels in the city centre of Berlin, Dresden and Leipzig. The assets, in the medium- and high-end segments, are operated by international brands (Park Inn, Radisson Blu, Westin, Pullman, Mercure, Ibis), and have a total of 4,131 rooms.
This package, which includes the iconic Park Inn Alexanderplatz and Westin Grand in Berlin, also provides 18,000 m2 of retail space with an additional buildable area of 70,000 m2 at Alexanderplatz in Berlin. Ownership of the assets is expected to be transferred this summer. Event Hotels will continue to manage this portfolio.
Eastdil Secured and JLL will provide consultancy services for this transaction.
The second portfolio comprises nine hotels in France and Belgium, notably in the centre of Lille (60% of the rooms, including l'Hermitage Gantois and Le Couvent des Minimes), and in Rouen (the Bourgtheroulde hotel). It provides 650 rooms, mainly operated under franchise agreements under the Autograph Collection, Best Western, Crowne Plaza and Holiday Inn brands. This portfolio is managed by FDM Management.
CA-CIB provided consultancy services for this transaction.
‘With these two major transactions, we are entering high-growth markets in partnership with the main international operators: Marriott, Starwood Hotels and Resort, IHG, AccorHotels, Best Western and Carlson Rezidor. As such, we are securing our position as a major player in hotel investments, and our aim to continue our development in Europe,’ said Dominique Ozanne, chairman of FDM Management and CEO Hotels and Hospitality Management at Foncière des Régions.
