Bloomberg - July 24, 2007
ANF SA, a real estate investment trust controlled by buyout firm Eurazeo SA, bought 159 hotels across France for 471 million euros ($651 million) from operator B&B, which will lease them back.
B&B, which is France's third-largest economy hotel company and is controlled by Eurazeo, will lease the hotels back under a 12-year accord, paying an initial annual rent of 27.3 million euros, Paris-based Eurazeo said in a faxed statement today.
The acquisition is the first purchase and leaseback deal by ANF, which opted for REIT status at the start of 2006, a year after Eurazeo transferred to it 131 buildings and developments in Lyon and Marseille. Eurazeo owns 83 percent of B&B.
ANF plans to raise half of the acquisition costs by selling new shares by the year-end. It hired BNP Paribas SA to manage the sale. The rest will be financed through bank loans. Only nine of the hotels bought have loans outstanding.
ANF will also acquire about 58 million euros of additional hotels that B&B is building during the next three years, according to the statement.
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