FdR's hotel management arm raises €172m of new capital

Foncière des Régions's hotel management arm, FDM Management has raised €172 mln of fresh equity from institutional investors Caisse des Dépôts, Crédit Agricole Assurances and Sogécap.

The move had long been announced by FdR, which is looking to strengthen its partnership with existing shareholders in the new vehicle.

The new investment partnership had already seen ACM Vie and BNP Paribas Cardif, two existing shareholders of FdM, enter the capital of FDM Management, a vehicle created by FdR in December 2014 to support the group's hotel strategy through management contracts or franchise agreement.

With an investment capacity of €350 mln for 2015, FDM Management has already completed two transactions this year representing total investment of €104 mln.

'This successful effort to raise equity capital shows the growing interest of long-term investors in hotel real estate,' the company said in a statement. It also proves 'the relevance of the partnership model of FdR, currently a French leader in hotel ownership via its subsidiary Foncière des Murs', it added.

Following the capital raise, FDM Management's shareholders include Foncière des Murs (40.8%), ACM Vie SA (11.6%), BNP Paribas Cardif (11.6%), Caisse des Dépôts (11.6%), Crédit Agricole Assurances (11.6%) and Sogécap (11.6%).