AccorHotels to sell stake in property business to buy new brands
Public Investment Fund is buying a stake alongside Singapore’s state-owned GIC Pte, French asset manager Amundi SA and U.S. real estate investment trust Colony NorthStar.
Saudi Arabia’s sovereign wealth fund is in talks to buy a 15 percent stake in Accor SA’s property business in a transaction that could value the unit at about 6.2 billion euros ($7.64 billion), according to people familiar with the matter.
Public Investment Fund, known as PIF, is buying a stake alongside Singapore’s state-owned GIC Pte, French asset manager Amundi SA and U.S. real estate investment trust Colony NorthStar Inc., the people said, asking not to be identified as the information is private. The group jointly aims to buy a majority stake in the AccorInvest business, though it wasn’t immediately clear how much PIF’s partners would each hold, they said.
While discussions are in advanced stages, there’s no guarantee that an agreement will be reached, the people said. Representatives for PIF, GIC and Amundi declined to comment. Spokesmen for Colony NorthStar couldn’t immediately be reached outside U.S. business hours.
U.K. property magazine Estates Gazette reported last year that Accor was in talks to sell the unit to the consortium. The hotel chain will remain the largest shareholder in a deal, which is likely to be announced by the end of February, the Financial Times reported this month.
Accor, Europe’s biggest hotel operator, is selling some assets in developed markets as it seeks to expand in emerging economies and acquire new brands.
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