DALLAS (AP) - Ashford Hospitality Trust Inc. said Wednesday it will team
with Prudential Real Estate Investors on a $400 million partnership that will
make domestic hotel investments.
Ashford, a real estate investment trust, will contribute $100 million in
capital to the joint venture, while the remaining amount will come from
investors in a Prudential-managed fund.
The joint venture will use a mezzanine approach, which combines debt and
equity financing. The financing is typically aggressively priced, with the
lender expecting a return between 20 percent and 30 percent.
Ashford said it plans to put a $21.5 million mezzanine loan that is secured
by interests in properties in Arizona and South Carolina toward the joint
venture.
The joint venture plans to buy or originate loans and preferred equity for
various hotels across the United States.
Prudential Real Estate Investors is the real estate management and advisory
arm of Newark, N.J.-based Prudential Financial Inc.
Copyright 2007 Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.
|