Premia Properties and Nordic Leisure Travel Group have signed an agreement for the acquisition of 100% of Sunwing Hotels Hellas.
"SUNWING HOTELS Hellas SINGLE MEMBER S.A." owns and operates the hotel "Sunwing Kallithea Beach," located in Rhodes. In addition, it owns 100% of the subsidiary "Helios Palace S.A.", which owns and operates the hotel "Sunwing Makrigialos & Ocean Beach Club" ("O.B.C.") located in Crete.
Sunwing Kallithea Beach is a 4-star hotel complex located in Kallithea, Rhodes. The land area is 118,000 sq m, and the gross area of the buildings (including ancillary areas) is 42,700 sq m, with a total capacity of 534 keys.
"Sunwing Makrigialos & Ocean Beach Club" is a 4-star hotel complex located in Ierapetra, Crete. The land area is 54,000 sq. m., and the gross area of the buildings (including ancillary areas) is 25,200 sq. m., with a total capacity of 262 keys.
The transaction price is €112,500,000, subject to adjustments in the context of legal, technical, and financial due diligence in accordance with the terms of the SPA.
NLTG Group has been operating the two hotels for a long period of time (50 years for Sunwing Kallithera Beach and 40 years for Sunwing Makrigialos & Ocean Beach Club) and will continue to operate them through a long-term lease agreement (triple-net) of the hotels, with an initial term of 15 years and an option to extend for an additional ten (10) years (5 + 5).
The aforementioned sale-and-lease-back transaction in the hotel sector is 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 tour operator based in Stockholm, Sweden, which is owned by a group of investors based in Scandinavia. Specifically, Strawberry Group holds 39.7% of the share capital, Altor Funds holds 39.7%, TDR Capital holds 19.9%, and the investing public, together with NLTG's management, holds 0.7% through NLTG MIPCo.
The transaction is subject to the receipt of necessary approvals (including from the Competition Commission) and the transfer of the business operations of the hotels to a subsidiary of Nordic Leisure Travel Group, under the name "NLTG Hotels Hellas SINGLE MEMBER S.A.".
The National Bank of Greece will finance the transaction through a bond issue. The transaction is expected to be completed in the fourth quarter of 2024.
Petter Stordalen, founder and owner of Strawberry Group, said: "This deal marks a new and exciting chapter. We are excited about our new partnership with PREMIA Properties. Combining NLTG Group's long experience in the hotel industry and the impressive business backgrounds of PREMIA and Elias Georgiadis, I am confident that together we will create added value and growth. I have personally experienced the importance of working with professional property owners abroad, and I look forward to future collaborations in Greece with our new partner."
Elias Georgiadis, CEO of STERNER STENHUS and President of PREMIA, made the following statement:. I would like to personally thank Petter Stordalen for trusting us with such an important investment step for PREMIA. This partnership opens the horizon for new investment opportunities in the tourism industry with our new strategic partner."
Magnus Wikner, CEO of NLTG, said: "I am delighted that we have entered into this strategic partnership with PREMIA, as it will enable us to explore and develop modern concept hotels in Greece that will cater to Scandinavian visitors. Greece is a destination country during the summer season, and there is a high demand for our hotels in Greece."
Kostas Markazos, CEO of PREMIA, said, "This transaction is a strategic choice for PREMIA in the growing hotel industry. With the completion of this investment, we will significantly increase both the size of the portfolio and the company's revenues."
