French SIIC Foncière des Murs (FdM) is looking at new opportunities outside its home market after sealing the acquisition last month of a European hotel portfolio in partnership with insurance group Predica.

French SIIC Foncière des Murs (FdM) is looking at new opportunities outside its home market after sealing the acquisition last month of a European hotel portfolio in partnership with insurance group Predica.

'There is plenty of opportunities especially in Germany, and I am convinced that we will soon do other transactions in this market where we see an important development potential,' said Dominique Ozanne, deputy managing director of FdM. 'There are no reasons to stop now that we have got to know better the German and Belgian markets.'

According to Ozanne, the hotel investment sector is dominated by small private players, with a scarcity of large investment specialists such as FdM. 'This situation gives FdM a chance to acquire a dominant position in the sector,' he pointed out. 'We see strong appetite from institutional investors for this type of product and we believe there is a lot of potential in teaming up with parties requiring FdM's specific hotel expertise.'

FdM, the hospitality arm of Foncière des Régions, was introduced to the Accor deal in June by Crédit Agricole Assurances' Predica unit, which was looking for a hotel specialist to partner with in the acquisition of a European hotel portfolio. At end-August the companies signed an agreement to acquire 48 hotels spread across France, Belgium and Germany for EUR 367 mln, reflecting a yield of 6.6%. The portfolio, comprising 31 assets in France, 10 assets in Belgium and a further seven in Germany, was acquired by an 80/20 partnership of Predica and FdM.

As part of the agreement, the Accor group is retaining ownership of the business and the management of the hotels which will continue to be operated under the Etap, Ibis, Novotel and Suitehotel brands with a rental price amounting to an average of 19% of the turnover. The deal, which is expected to be completed before the end of the year, is being financed with 50% of bank debt.

FdM has a portfolio consisting of 250 hotels mostly located in France with a minority in Belgium and Germany.