Thursday, November 09, 2006

Club Med Completes EUR 100 Million Sale Leaseback of 3 Ski Villages

Euronext - November 7, 2006

Club Méditerranée has carried out two sale and leaseback transactions, one with Vectrane on Les Deux Alpes Village and the other with non-trading property companies and real estate investment funds concerning the Chamonix and Avoriaz villages.

The transactions amount to a total of more than €100 million, including €14 million in renovation work. The facilities will be leased back under 12-year leases, renewable at Club Méditerranée's option. The leases carry rates of 6.50 to 6.80% depending on the type of assets, for an average rate of 6.70%.

The transactions, which are in line with Club Méditerranée's property management strategy, enable the Group to refinance three villages on attractive terms and to accelerate their move upmarket. As part of this process, the investors will finance €9 million in renovation work at Les Deux Alpes Village, which will be upgraded from two to three tridents, and €5 million in work at the Avoriaz Village.

The transactions will help to improve Club Méditerranée's balance sheet by reducing debt by €64 million and will generate an after-tax capital gain of around €20 million. The difference between the lease payments and the previous depreciation and finance costs will add around €1.5 million a year to net income. Sphere: Related Content

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