Michelle Napoliis editor of Net Lease forum, from whichthis article is excerpted.

Paris—Locally based hotelier Accor SA andLondon-based Land Securities Trillium, the propertypartnership business of Land Securities Group PLC, agreed toa 30-property sale-leaseback with an acquisition price of439-million British pounds or about US$857 million. The dealinvolves 5,000 rooms in properties under the Ibis and Novotelbrands in city center locations in the United Kingdom, with aparticular weighting in London.

As part of the arrangement, Accor will continue to manage theproperties with an initial 12-year term plus ensuing 12-yearrenewals. The aggregate lease term is for 84 years. The rent isvariable, but would have totaled 41 million euros (or aboutUS$53.87 million) in 2006. Land Securities Trillium also agreed tofinance 53 million euros of renovations to the properties duringthe next several years.