UPDATE 1-Colony Capital names Europe co-heads to replace Bazin

PARIS Tue Aug 27, 2013 9:50am EDT

PARIS Aug 27 (Reuters) - U.S. investment fund Colony Capital named Jean-Romain Lhomme and Nadra Moussalem as co-heads of its European arm to replace Sebastien Bazin, who on Tuesday tool over the reins of French hotel group Accor.

Lhomme and Moussalem will take up their new roles on Sept. 2 and will be responsible for managing Colony's existing portfolio in Europe alongside Colony Global and pursuing new investment opportunities in the zone, Colony said.

"We continue to believe the European market is becoming increasingly fertile territory for new investment activity," Lhomme and Moussalem said in a statement.

"Our goal, which (group CEO) Tom Barrack has stated previously, is to invest 2 billion-plus euros ($2.67 billion) in Europe over the next 18 months."

Colony invested 1 billion euros in Accor in 2005 and was joined in 2008 by French private equity fund Eurazeo. Together they control 21.4 percent of the group and four board seats. Colony directly owns about 11 percent of Accor.

Colony Capital also has shareholdings in But, Carrefour , Colonial, DIA, Edenred and Inmobiliaria Colonial.