GIC in group to acquire 55% of AccorInvest for $7.1 bil
By Samantha Chiew
/ The Edge Singapore |
SINGAPORE (Feb 28): GIC, the global investment firm, along with a group of investors will be acquiring a 55% stake in AccorInvest for €4.4 billion ($7.13 billion).
AccorInvest is a world leader in hotel real estate with a current portfolio of 891 hotels, with the majority of the hotels located in Europe.
Under the terms of the agreements, AccorHotels would initially sell 55% of AccorInvest to GIC, the Public Investment Fund (PIF), Credit Agricole Assurances, Colony NorthStar and Amundi, along with other investors.
The 217-unit Novotel London Paddington at Kingdom St in London, one of the hotels under the AccorInvest portfolio (Credit: AccorHotels)
The AccorInvest hotels would be operated by AccorHotels under very-long-term contracts, namely 50 years for luxury and upscale hotels, with a 15-year renewal option, as well as 30 years on average, with a 10-year renewal option for hotels in the midscale and economy segments.
The transaction is subject to certain regulatory approvals and will be submitted to the works council and to a shareholders’ meeting of AccorHotels for consultation. It is expected to be finalised in the second quarter of 2018.
This story, written by Samantha Chiew for The Edge Singapore, first appeared on Feb 28.
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