PREMIA Properties REIC (“PREMIA”) and Nordic Leisure Travel Group (“NLTG”) announced the signing on 31.7.2024 of a binding agreement under which PREMIA will acquire from “NLTG HH Greece SINGLE MEMBER S.A (“Seller”) 100% of the Seller’s share capital of the company “SUNWING HOTELS Hellas SINGLE MEMBER S.A”.
“SUNWING HOTELS Hellas SINGLE MEMBER S.A”owns and operates the hotel “Sunwing Kallithea Beach” located in Rhodes and holds 100% of its subsidiary company “Helios Palace S.A”, which owns and operates the hotel “Sunwing Makrigialos & Ocean Beach Club” (“O.B.C.”) located in Crete (collectively “Hotels”).
- “Sunwing Kallithea Beach” is a 4-star hotel resort, located in Kallithea Rhodes. Plot Area is 118,000 sqm and total Gross Built Area (including auxiliary areas) is 42,700 sqm, with a total capacity of 534 keys
- “Sunwing Makrigialos & Ocean Beach Club” is a 4-star hotel resort, located in Ierapetra Crete.
Plot Area is 54,000 sqm and Gross Built Area (including auxiliary areas) is 25,200 sqm, with a total capacity of 262 keys. The consideration of the transaction amounts to €112,500,000 subject to adjustments following confirmatory due diligence process in accordance with the terms of the relevant Share Purchase Agreement.
NLTG Group has been successfully operating the hotels for a long period (50 years for Sunwing Kallithera and 40 years for Makrigialos) and will continue to operate them through a long-term triple-net lease agreement for an initial duration of 15 years with extension options of the Lease for a period of ten (10) years (five (5) years plus five (5) years).
The aforementioned sale-and-lease-back transaction in the hospitality sector in Greece marks a strategic partnership between PREMIA and NLTG.
The Seller, NLTG HH GREECE SINGLE MEMBER S.A., is a subsidiary of Nordic Leisure Travel Group, a Stockholm, Sweden-based travel operator, which belongs to a group of private investors based in Scandinavia : Strawberry Group holds 39.7 percent ownership interest, Altor Funds holds 39.7 percent, TDR Capital holds 19.9 percent and other investors and NLTG management hold 0.7 percent via NLTG MIPCo.
The transaction remains subject to conditions regarding obtaining of necessary required approvals (including approval of Competition Commission) and the transfer of the operation of the Hotels to a subsidiary of the Nordic Leisure Travel Group under the name “NTLG Hotels Hellas SINGLE MEMBER S.A.” National Bank of Greece executed the underwriting and will finance the transaction.
Closing is estimated to occur within Q4 2024.
