Greek real estate investor Premia Properties has acquired a Greek hotel portfolio from Swedish travel operator Nordic Leisure Travel Group (NLTG) for €112.5 mln.
The total transaction value is subject to adjustments based on due diligence findings.
Premia signed a binding agreement to purchase 100% of the share capital of Sunwing Hotels Hellas Single Member from NLTG HH Greece Single Member.
The acquired portfolio comprises two 4-star resorts: Sunwing Kallithea Beach in Rhodes (118,000 m2 plot, 42,700 m2 built area, and 534 rooms), and Sunwing Makrigialos & Ocean Beach Club in Crete (54,000 m2, with a 25,200 m2 built area and 262 rooms).
Elias Georgiadis, CEO of Sterner Stenhus and chairman of Premia, said: ‘We are very happy to proceed with this strategic action joining forces with one of the largest tourism companies in Europe that was founded and has its headquarters in Scandinavia, with a significant presence in Greece. This collaboration opens the horizon for new investment opportunities in the sector of tourism with our new strategic partner.’
Magnus Wikner CEO of NLTG commented: ‘I am happy that we have entered this strategic partnership with Premia Properties as it will make it possible for us to explore and develop new concept hotels in Greece for the benefit of our Nordic guests. Greece is our biggest destination country for the summer season, and we see especially strong demand for our own hotel concepts to Greece.’
Kostas Markazos, CEO of Premia Properties, added: ‘The transaction marks a strategic choice for the entry of Premia Properties in the growing hospitality sector in Greece. This investment increases significantly both Premia's property portfolio size and investment income.’
NLTG Group has been operating Sunwing Kallithea for 50 years and Makrigialos for 40 years. It will continue to manage the hotels under a long-term triple-net lease agreement with Premia Properties. The initial lease term is 15 years, with two optional five-year extensions.
The transaction's completion is subject to regulatory approvals, including from the Competition Commission. NLTG will transfer hotel operations to its subsidiary, NTLG Hotels Hellas Single Member. The National Bank of Greece is underwriting and financing the deal. The transaction is expected to close in Q4 2024.
