Northern European hotel owner Pandox has signed an agreement to sell eight hotel properties with a total of 965 rooms in Sweden to its peer Midstar.
Northern European hotel owner Pandox has signed an agreement to sell eight hotel properties with a total of 965 rooms in Sweden to its peer Midstar.
The acquisition price amounts to SEK 850 mln (€90 mln), after deduction of deferred tax, with the buyer acquiring the shares in each respective property-owning company. The price paid 'substantially' exceeds the book value of the properties per 31 December 2015, Pandox said.
The realised value change is estimated at SEK 160 mln in the first quarter of 2016.
'The transaction is in line with Pandox’s strategy to continuously develop and optimise the hotel portfolio with focus on larger full-service hotels in strategic locations,' said Anders Nissen, CEO at Pandox.
The hotels, which are located in regional and smaller central cities in Sweden, have on average 121 rooms and are smaller than Pandox’s average hotel. They generated a net operating income in 2015 of SEK 50 mln.
The transaction, which includes a rental guarantee from Pandox in favour of the buyer for three years,
is expected to close at the end of March 2016.
Pangea Property Partners assisted Pandox in the transaction.
LIST OF ASSETS
Hotel City
Scandic Bollnäs - Bollnäs
First Hotel Mårtenson -Hal stad
Scandic Klarälven -Karlstad
Stadshotellet Princess Sandviken -Sandviken
Scandic Hotell Billingen -Skövde
Quality Hotel Prisma -Skövde
Scandic Umeå Syd -Umeå
Scandic Östersund Syd -Östersund
