This article is from the Australian Property Journal archive
Private equity group Moor Park Real Estate has purchased a portfolio of European hotel properties from Accor hotels for €863 million euro ($A1.46 billion).
Accor will offload 72 hotels in Germany and 19 in the Netherlands to Moor Park Real Estate, including a €43 million euro renovation program to be paid for by the owner.
The Novotel, Mercure, Ibis and Etap Hotel properties involved in the transaction represent a total of 12,000 rooms.
As part of the agreement, Accor will continue to operate the hotels under 12-year variable-rent leases, whose rents are based on an average 18% of annual revenues with no guaranteed minimum.
The leases are renewable six times, for a total of 84 years. Based on 2006 revenues, variable rent would have amounted to 49.5 million euros.
Moor Park Real Estate is a private equity real estate group borne out of three ex directors of Nomura, a Japanese bank.
The group is led managing partner Gary Wilder along with partners Shemeel Khan and Jagdeep Kapoor.
Last month, Moor Park teamed up with German retailer Praktiker to buy a rival German retail chain for €1 billion euro.
This transaction will enable Accor to reduce its adjusted net debt by €612 million euros, of which €215 million euros will be added to the group’s cash reserves.
Accor’s financial advisors on the transaction were BNP Paribas, with legal and tax advice by CMS Hasche Sigle and Stibbe.
Australian Property Journal
