Tuesday, September 28, 2010

B&B: One Carlyle Buyout, Two Future IPO's

FT reported:

Carlyle plans to split B&B into an operating company owned by its buy-out fund and a property company backed by its real estate fund, and aims to expand by opening new budget hotels in Germany, France, Italy and the Netherlands.
The Carlyle Group did this with Coresite, a data center provider.  Coresite Realty became Carlyle's best priced IPO year to date.  Despite pricing in the mid-range at $16, the stock closed today at $15.98.

Rumors had Carlyle enacting a similar strategy with Healthscope, the Australian hospital chain.  It already spun off ManorCare's nursing home facilities from operations.  Commercial mortgage backed security obligations likely prevent a strategy for ManorCare, at least in the short term.