In order to continue its hotel development strategy, Foncière des Regions is announcing the creation of FDM Management through its subsidiary, Foncière des Murs. FDM Management is an investment partnership to acquire hotels (premises and business assets) run by major operators in the sector.
This new investment partnership will unite Foncière des Murs, the main shareholder, with ACM Vie SA and BNP Paribas Cardif. A new effort to raise equity capital is in progress with other institutional investors, which will create an investment capacity of at least €300 mln in 2015. This new structure will also expand the group’s operations in order to pursue real estate partnerships with major hotel brands in Europe.
Two initial transactions for €104 million: To support Louvre Hotels Group, FDM Management is in exclusive negotiations to buy nine hotels in Germany and transform them into “Première Classe” hotels. By using this new investment partnership, Louvre Hotels Group can roll out its Première Classe brand for the first time in the German market, where the budget hotel penetration rate is still weak (9% vs 44% in France). The investment is around €49 mln.
FDM Management is also purchasing a Pullman hotel for future completion (VEFA) from Eiffage at the Roissypole site, in the immediate vicinity of the Roissy-Charles de Gaulle airport, with delivery planned for the second half of 2015. This 305-room hotel represents a €55 mln investment and will be operated by Accor via a management contract.
Source: Foncière des Régions