The hotel assets are performing well and investors are interested in them. All the lights are on green for real estate companies that are developing hotels and so much the better.
Eurazeo Patrimoine is investing in Greater Paris
Strengthening our operational capabilities, international expansion, and increasing our resources from partner investors: this is my road map for the coming months and years. Virginie Morgon, CEO Eurazeo, in the company's 2018 financial statements.
The investor acquires a 44% stake in the Emerige Group for approximately €90 million. Emerige develops real estate projects in the Île-de-France region. It is responsible for the delivery of the Cultural Center on the Ile Seguin and Beaupassage, which was opened to the public last summer in the 7th arrondissement of Paris. The group's founder, Laurent Dumas, remains the majority shareholder in emerige. One of the main objectives of Eurazeo's entry into the capital is to enable the Ile-de-France developer to expand outside the Île-de-France region.
Eurazeo has also holds share in Sommet Education since March 2016 and has just acquired Ducasse Education, which is celebrating its first graduation for a Bachelor of Culinary Arts and a Bachelor of French Pastry.
A full pipeline, successful debt reduction, Covivio is riding the wave of good health of the European real estate market and reaping the benefits of long-term work. The investor is continuing to tighten its hotel assets for a move upmarket in its portfolio by selling 30 B&B hotels located in France for €113 million with an announced margin of 13%.
The group's hotel business was characterised in the first half of 2019 by the acquisition of €267 million in assets for the sale of €132 million in hotels. The investor announces an increase in the value of its hotel assets by +1.8% thanks to the recovery of the French and German markets.
Overview of hotel assets
Source Covivio half-yearly report
Extendam changes gears
The investor's hotel portfolio exceeds €2 billion in value with a priority placed on MICE markets.
"As of June 30, 2019, since its creation Extendam has acquired a total of 136 shares in 186 hotels in continental Europe." This is the balance sheet claimed by the investor.
"Hotels now represent the 4th largest commercial real estate asset class in Europe after offices, shops and logistics. Several years ago, we identified that this asset class has very favourable fundamentals.
For the second half of 2019 and the coming years, we aim to accelerate the development of our investments in business hotels in Europe, with a particular focus on countries with strong growth potential in this sector such as France, Germany, Portugal, Benelux and Italy," said Jean-Marc Palhon, President of Extendam.