Ivanhoé Cambridge is continuing its program to dispose of non-strategic assets with the sale of four hotels located in Paris’ financial district. The profit made by the Company will be used to concentrate its investments in strategic products and markets.
“We have implemented a program aimed at focusing our resources toward the sectors in which we excel and where we want to grow our critical mass. The sale of these assets is perfectly in line with this approach, and is carried out in an orderly and prudent manner,” said Meka Brunel, Executive Vice President, Europe, Ivanhoé Cambridge.
Since 2012, Ivanhoé Cambridge has been reviewing the composition of its real estate portfolio with an eye to improving its efficiency and generating optimal returns for its investors. It has sold more than 20 hotels in Canada and the United States. The Company now concentrates its investments in target markets in order to create a significant critical mass in its three main business sectors.
The four Parisian hotels included in this transaction have a total of 626 rooms with 565 m2 (6,081 ft2) of meeting space. They have been sold to Morgan Stanley Real Estate Fund VII Global, a real estate fund managed by Morgan Stanley, and to Paris Inn Group, a hotel manager, investor and owner.
Crédit Agricole CIB and Jones Lang LaSalle Hotels & Hospitality Group advised Ivanhoé Cambridge on this transaction.