GE Real Estate Europe has partnered France's BNP Paribas Assurance as a limited partner of Capital France Hotel (CFH), a hotel fund set up in 2007 and managed by Algonquin Asset Management France to acquire €1bn of hotels by the end of 2010.
The vehicle intends to invest in further hotel assets across Eurozone countries, Scandinavia and Central and Eastern Europe. It currently owns and manages a portfolio of nine three- and four-star hotels in urban locations, operated under Rezidor, Radisson and Park Inn brands. As part of the deal, GE Real Estate has agreed to inject three French assets, operated by Accor and Marriott into the fund in exchange for CFH shares and cash.
CFH’s portfolio is valued at approximately €275 million.
GE said in a statement it will act as both an investor through its initial stake and as an operational partner.
Remy Gancel, managing director and head of new business for GE Real Estate Europe, said, “It demonstrates GE Real Estate’s appetite for identifying investment opportunities where it can work alongside excellent partners to grow its business, and its ambitions for expanding CFH in Europe in the mid-scale hotel sector.
Nathalie Robin, head of real estate at BNP Paribas Assurance said, “This deal is part of BNP Paribas Assurance’s strategy as a real estate investor to diversify its investments.”