Related links
Nabarro advises on acquisition of Accor Hotel portfolio
15 March 2007
Nabarro is advising Land Securities Trillium ('LST') (Land Securities' property partnership business) on the acquisition of a portfolio of hotels from Accor S.A. ('Accor'), the fourth largest hotel operator in the world. The portfolio comprises 30 hotels, representing approximately a third of the hotels currently owned or operated by Accor in the UK. The transaction consideration is £439m with a commitment to contribute around £35m of capital over four years towards property improvement works.
LST will lease each hotel back to Accor on 84-year leases, which will include 12 year rolling tenant breaks, while retaining responsibility for the lifecycle maintenance of the core fabric of the buildings. The 30 hotels, which are operated under the IBIS two-star and Novotel three-star brands, are located in established city centre locations or near international airports across the UK, with a weighting towards London. It is expected that this portfolio will be included in the REIT qualifying portfolio.
Accor and LST are now in the process of agreeing all final details of the transaction.
The Nabarro team is led by real estate partners James George and John Cumpson and by corporate partner Andrew Wigfall with assistance from partners and associates across the firm. A team led by Simon Etchells at Semple Fraser is acting in conjunction with Nabarro in relation to the Scottish part of the portfolio.
John Cumpson stated "James, Andrew and I are absolutely delighted to be acting for Land Securities and Land Securities Trillium on this transaction, cementing the long standing relationship of our firm with our client."
CMS Cameron McKenna LLP (led by partner James Miller and Tom Page), assisted by Stephenson Harwood and Morton Fraser LLP, are acting for Accor.
For further information please contact:
Charlotte Tandy
Lansons Communications
020 7490 8828
charlottet@lansons.com
or
James George
Nabarro
020 7524 6586
j.george@nabarro.com
