COVIVIO HOTELS (EPA:COVH) - Foncière des Murs forms a partnership with the B&B hotel group and announces its plans to launch a capital increase of around €100 M

Transparency directive : regulatory news

06/10/2010 18:41

Not to be distributed in the United States of America, Canada, Australia,
United Kingdom, Italy or Japan

Press release

Paris, October 6th, 2010

Foncière des Murs forms a partnership with the B&B hotel group and announces
its plans to launch a capital increase of around EUR100 M

Foncière des Murs has signed a purchase agreement with the B&B group for a
portfolio of hotels, representing 1,980 rooms, for a price of approximately
EUR85 M including fees. The portfolio consists of hotels located in France and
Germany, in use and under development. The transaction will include the signing
of leases with fixed triple net rents for a duration of 12 years in France and
20 years in Germany. With the creation of this partnership, Foncière des Murs
intends to support B&B in its future developments.

This transaction with B&B allows Foncière des Murs to increase its property
partnership base and further secure its rental revenues.

Foncière des Murs intends in the very near future, subject to market
conditions, to increase cash capital, maintaining shareholders' preferential
subscription rights, for an amount of around EUR100 M.

The main shareholders of Foncière des Murs (Foncière des Régions, Prédica,
Pacifica, Generali Vie, CARDIF Assurance Vie and ACM Vie), collectively holding
90.37% of the capital, have already announced their intention to subscribe up
to the level of their respective shareholding. Foncière des Régions has also
indicated its intention to take up the shares which are not subscribed under a
right to apply for new or excess shares from the other shareholders and/or
those selling their preferential subscription rights.

The main aim of this capital increase is to finance the purchase of the hotels
run by B&B as well as the deal recently signed with Accor and carried out in
partnership with Prédica. It will also strengthen the company's financial
flexibility.

About Foncière des Murs

Foncière des Murs SCA, a subsidiary of Foncière des Régions, is a French
listed real estate investment trust (SIIC) specialised in business premises,
especially in the hotel, restaurant, health and leisure sectors. The company's
investment policy is focused on building partnerships with leading operators in
their sectors in order to provide its shareholders with a recurring return on
their investment.

Foncière des Murs is quoted on compartment B of the regulated market of
NYSE Euronext in Paris (FR0000060303-FMU).

www.foncieredesmurs.fr

Press contact:

FONCIERE DES MURS
Dominique Ozanne - Deputy General Manager
Tel: + 33 (0)1 58 97 54 20
dominique.ozanne@fdr.fr

This announcement is not an offer of securities for sale in the United States
of America or in any other jurisdiction. Securities may not be offered or sold
in the United States of America absent registration or an exemption from
registration. Foncière des Murs does not intend to seek registration or an
exemption from registration, nor to make an offer of securities for sale, in
the Unites States. Copies of this announcement are not being, and should not
be, distributed in or sent to the United States of America, Canada, Australia,
Italy or Japan.

No communication and no information in respect of Foncière des Murs' share
capital increase with preferential subscription rights may be distributed to
the public in any jurisdiction where a registration or approval is required. No
steps have been or will be taken in any jurisdiction where such steps would be
required. The issue, the exercise or the sale of preferential subscription
rights and the subscription for or the purchase of new shares or preferential
subscription rights may be subject to specific legal or regulatory restrictions
in certain jurisdictions. Foncière des Murs assumes no responsibility for any
violation of any such restrictions by any person.

This announcement is not a prospectus within the meaning of Directive
2003/71/EC, as implemented in each member State of the European Economic Area
(the "Prospectus Directive").

The offer is open to the public in France following the delivery of the visa on
the Prospectus by the French Autorité des marchés financiers.

With respect to the member States of the European Economic Area which have
implemented the Prospectus Directive (each, a "relevant member State"), other
than France, no action has been undertaken or will be undertaken to make an
offer to the public of the securities requiring a publication of a prospectus
in any relevant member State. As a result, the securities may only be offered
in relevant member States: (a) to legal entities which are authorized or
regulated to operate in the financial markets or, if not so authorized or
regulated, whose corporate purpose is solely to place securities; (b) to any
legal entity which has two or more of the following criteria: (1) an average of
more than 250 employees during the last financial year; (2) a total balance
sheet of more than EUR 43 million; and (3) an annual net turnover of more than
EUR 50 million, as per its last annual or consolidated accounts; (c) in any
other circumstances, not requiring the issuer to publish a prospectus as
provided under article 3(2) of the Prospectus Directive.

The distribution of this press release is not made, and has not been approved,
by an "authorised person" within the meaning of Article 2 1(1) of the Financial
Services and Markets Act 2000. As a consequence, this press release is directed
only at persons who (i) are located outside the United Kingdom, (ii) have
professional experience in matters relating to investments and fall within
Article 19(5) ("investment pro fessionals") of the Financial Services and
Markets Act 2000 (Financial Promotions) Order 2005 (as amended) (the "Order"),
(iii) are persons falling within Article 49(2)(a) to (d) (high net worth
companies, unincorporated associations, etc.) of the Order or (iv) are persons
to whom this press release may otherwise lawfully be communicated (all such
persons together being referred to as "Relevant Persons"). The securities are
directed only at Relevant Persons and no invitation, offer or agreements to
subscribe, purchase or otherwise acquire securities may be proposed or made
other than with Relevant Persons. Any person other than a Relevant Person may
not act or rely on this document or any provision thereof. This press release
is not a prospectus which has been approved by the Financial Services Authority
or any other United Kingdom regulatory authority for the purposes of Section 85
of the Financial Services and Markets Act 2000.

This press release does not constitute or form a part of any offer or
solicitation to purchase or subscribe for securities in the United States of
America. The preferential subscription rights and the new shares of Foncière
des Murs have not been and will not be registered under the U.S. Securities Act
of 1933, as amended (the "U.S. Securities Act"), and may not be offered or
sold, directly or indirectly, within the United States of America except
pursuant to an exemption from or in a transaction not subject to, the
registration requirements of the Securities Act. Foncière des Murs does not
intend to register any portion of the proposed offering in the United States of
America nor to conduct a public offering of securities in the United States of
America.

The distribution of this document in certain countries may constitute a breach
of applicable law. The information contained in this document does not
constitute an offer of securities for sale in the United States of America,
Canada, Australia, Italy or Japan.

This press release may not be published, forwarded or distributed, directly or
indirectly, in the United States of America, Canada, Australia, United Kingdom,
Italy or Japan.

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