Sancus Capital, the investment firm led by Borja Escalada, has reached an agreement with Castlelake and other shareholders to acquire approximately 53.5% of Hotei Properties Group, a SOCIMI specializing in five-star hotel assets. The transaction, communicated to BME Growth, will result in the replacement of the current reference shareholder and opens the door to a potential offer for up to 100% of the company’s share capital.
The firm will also extend an offer to the remaining shareholders under the same terms, enabling them to sell their shares on equivalent conditions. The transaction is valued at approximately €199 million, subject to customary adjustments.
Transaction terms and valuation
The agreed price is up to €3.2 per share, adjusted for any distributions made to shareholders between the signing and closing of the transaction, whether in the form of dividends or share premium distributions.
At this price level, the acquisition of the 53.5% stake implies an equity valuation of approximately €199 million before adjustments.
According to Sancus Capital, this price represents a 16% premium over the company’s trading price. Furthermore, when including distributions made to shareholders since Sancus Capital’s entry into the company’s strategy and the appointment of Borja Escalada as CEO, the total revaluation of the share reaches approximately 85% over the past 18 months.
Conditions precedent
The completion of the transaction is subject to the fulfillment of certain conditions, including the approval by the General Shareholders’ Meeting of Hotei Properties of the sale of the Hotel Nômade in Madrid, a transaction for which the SOCIMI has already announced a binding agreement.
Strategic background and partnership history
The relationship between Sancus Capital and Hotei Properties began 18 months ago through a strategic partnership aimed at facilitating a potential equity stake and supporting the definition and execution of the company’s strategy.
With this agreement, Sancus Capital will become the majority shareholder of Hotei Properties, while Borja Escalada will continue as Chief Executive Officer of the company.
Leadership and broader investment platform
In addition to his role at Sancus Capital, Borja Escalada is also a partner and principal executive at Sancus Hotels, the investment vehicle that owns the Rosewood Villa Magna and Bless Madrid hotels, both located in the Spanish capital and acquired in November 2022.
Sancus Capital manages more than €2 billion in assets across hospitality, renewable energy, real estate, private equity, and venture capital. Its hotel investment activity is conducted through Sancus Hotels, a platform focused on luxury and ultra-luxury hospitality assets.
Hotei Properties portfolio and strategy
Hotei Properties Group currently owns a portfolio of iconic hotel assets, including four hotels in Madrid—JW Marriott, Hotel Nômade, Nobu, and El Autor Hotel—as well as the Radisson Collection and Mercer Plaza in Seville, and the Nobu San Sebastián.
This portfolio has been shaped following a series of recent divestments and reflects the company’s strategy of acquiring landmark real estate assets and transforming them into five-star hotels in partnership with leading national and international operators.
The SOCIMI’s strategy is focused on developing a leading luxury and ultra-luxury hospitality platform in Europe, enhancing asset value through active management and repositioning.
“We are very excited to deepen our commitment and partnership with Hotei Properties, with the goal of positioning the company as a leading platform in the luxury and ultra-luxury hospitality sector in Europe, thereby increasing value creation for all shareholders,” said Borja Escalada.
About Sancus Capital
Sancus Capital Partners is an investment firm with activities across hospitality, renewable energy, real estate, private equity, and venture capital. The firm manages more than €2 billion in assets and operates its hospitality strategy through Sancus Hotels, a dedicated platform focused on luxury and ultra-luxury hotel investments.
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