GE Real Estate said on Thursday that it is has teamed up with BNP Paribas Assurance as a founding partner of Capital France Hotel (CFH), a hotel investment fund which is managed by the French asset management subsidiary of Belgium's Algonquin. The two partners intend to grow CFH's assets under management to EUR 1bn by the end of 2010 through investing in hotels across the eurozone countries, Scandinavia and Central and Eastern Europe.
GE Real Estate said on Thursday that it is has teamed up with BNP Paribas Assurance as a founding partner of Capital France Hotel (CFH), a hotel investment fund which is managed by the French asset management subsidiary of Belgium's Algonquin. The two partners intend to grow CFH's assets under management to EUR 1bn by the end of 2010 through investing in hotels across the eurozone countries, Scandinavia and Central and Eastern Europe.
Launched in 2007 by BNP Paribas and Algonquin, CFH has been targeting French hotel properties and currently owns and manages a portfolio of nine three- and four-star hotels operated under the Rezidor, Radisson and Park Inn brands. In a statement, GE RE said it is bringing three French assets, operated by Accor and Marriott, into the fund, in exchange for CFH shares and cash. The fund's manager, Algonquin Asset Management France, also holds a stake in the fund.
CFH's portfolio is currently valued at around EUR 275mln and consists of 12 assets in France with a total of 2,140 rooms. The assets include two hotels in Paris operated by Accor under the Mercure brand; one hotel in Cap d’Ail operated under the Marriott brand; nine hotels in regional French cities operated by Rezidor under the Radisson and Park Inn brands, including the Radisson Nice, the Radisson Lyon and the Park Inn Nancy.
GE Real Estate will act both as an investor in the fund through its initial stake and as an operational partner. 'This partnership clearly illustrates GE Real Estate's ability to generate new business, leveraging its strong origination expertise and local knowledge of the European markets,' said Remy Gancel, managing director and head of new business for GE RE.
The fund will be open to investment by other third-party investors, GE RE said in a statement. Nathalie Robin, head of real estate for BNP Paribas Assurance said: 'This deal is part of BNP Paribas Assurance's strategy - as a real estate investor - to diversify its investments. This new step for CFH is an opportunity to reach a European scale.'
