Saudi PIF said to seek 15% stake in Accor’s property business

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is looking at buying a 15 percent stake in Accor’s property business in a transaction that could value the unit at over $7.64 billion, Bloomberg reported, citing unnamed sources.

While talks are in advanced stages, there is no guarantee that a deal will be finalized.

PIF is buying a stake alongside Singapore’s state-owned GIC Pte, French asset manager
Amundi, and US real estate investment trust Colony NorthStar, the sources said.

The group plans to jointly buy a majority stake in the AccorInvest business, but it is yet to be determined how much PIF’s partners will each hold, the agency reported. 

“Discussions are ongoing with tier-one French and international investors,” Accor said in a statement on Wednesday announcing 2017 financial results.

“They are now in their final stages,” the company added.

The Saudi sovereign fund seeks to become the world’s largest, as the Kingdom diversifies its economy away from oil under its Vision 2030 reform plan.