Fonciere des Murs Group Buys $644 Million of Hotels

Fonciere des Murs SCA and two French banks’ insurance units bought 165 hotels in France from Carlyle Group LP (CG)’s B&B Hotels for 508 million euros ($644 million).

Fonciere des Murs, the sale-and-leaseback company controlled by Fonciere des Regions SA, will own 50.2 percent of a tax-exempt fund buying the budget hotels from B&B, according to an e-mailed statement today. Credit Agricole SA (ACA)’s Assurances unit will have a 40 percent stake and Assurances du Credit Mutuel, a unit of Banque Federative du Credit Mutuel SA, will own 9.8 percent.

B&B, acquired by Washington-based Carlyle in 2010, will lease back the properties. The rental income represents about 6.9 percent of the purchase price, according to the statement. Fonciere des Murs, based in Paris, acquired 18 hotels from B&B in October 2010.

“This new transaction will enable Fonciere des Murs (FMU) to position itself as the preferred contact for B&B,” according to the statement.

Fonciere des Murs already owned 171 hotels or spas, mainly operated by Accor SA, which were valued at 1.57 billion euros at the end of June. Its other assets include retirement homes, clinics, garden centers and holiday villages.

Fonciere des Murs was unchanged at 17.20 euros at 11:07 a.m. in Paris, valuing the company at 1.1 billion euros. The shares have gained about 2.4 percent this year.

To contact the reporter on this story: Simon Packard in London at packard@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

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