On 23 July 2007, ANF agreed the acquisition from B&B of a portfolio of 159 hotels (with 11,455 rooms) for €471 million, including transfer taxes and expenses (€450 million excluding transfer taxes and expenses).
These hotels are spread across the whole of France, and are operated by B&B, the third-largest operator in the French economy hotel market. Triple net leases have been signed for a firm initial period of 12 years, renewable twice at B&B’s request, for fixed, indexed rents worth an initial €27.3 million before VAT.
At the end of the first 12-year period, the lease will be renegotiated within limits that have already been contractually established.
To finance this transaction, €182 million of long-term debt has been taken out, with the balance being financed by the October 2007 capital increase.
This acquisition was accompanied by the signing of an agreement which allows ANF to be a partner in the expansion of the B&B hotel chain for a period of at least three years, on the basis of a programme of identified investments worth about €58 million.
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