Le Méridien May Enter Into Second Sale, Leaseback Deal

LONDON— Nomura’s Principal Finance Group (PFG), which acquired the 150-strong Le Méridien portfolio for £1.9 billion (or US$2.68 billion) in May 2001, is reported to be investigating a second sale and leaseback agreement, according to HVS International. The PFG arranged the first agreement at the time of the acquisition, a £125 million (or US$176.2 million) sale and leaseback deal with the Royal Bank of Scotland on 12 of the hotels. Now PFG has opened talks with German bank DePfa for a £1 billion (US$1.4 billion) sale and leaseback of a further 12 European hotels, an arrangement designed, like its predecessor, to raise more than the £1.9 billion (or US$2.68 billion) acquisition price. However, any new deal is reportedly a long way off. SOURCE: HVS International