Valamar Riviera has finalized the sale of three Dubrovnik hotels to Imperial Riviera for the amount of EUR 95.34m or EUR 101ths per accommodation unit.
Valamar has announced the finalization of the sale of the three Dubrovnik hotels ( Valamar Lacroma Dubrovnik Hotel, Club Dubrovnik Sunny Hotel by Valamar and Tirena Sunny Hotel by Valamar) to Imperial Riviera. These hotels have a total of 947 accommodation units and were sold for EUR 100,676 per accommodation unit, with the total transaction value amounting to EUR 95.34m.
In order to finance this transaction, it was agreed between Valamar Riviera and Imperial Riviera that Imperial will take over Valamar’s loan obligations of two club loans from OTP banka Hrvatska from Split, and OTP Bank Nyrt from Budapest, Hungary and four loans from Croatian Bank for Restructuring and Development (‘HBOR’) from Zagreb in the total amount of EUR 90.29m. The overall weighted average interest rate on these loans would be 1.36%, with the mortgages on hotels in question also transferred, while the remaining amount of EUR 5.05m is to be paid in cash.
As a reminder, Imperial Riviera capital increase took place in November, when Valamar for its share transferred the ownership of the land (Sqm 148,949) on which the hotels are located, with an estimated value of HRK 352.8m. AZ pension funds transferred cash for its part of capital increase for the amount of HRK 366.9m. Valamar holds 43.69% share in Imperial Riviera.
Valamar also said that together with AZ pension funds, they will make significant investments through Imperial Riviera, which will act as a mutual company for growth and development, to further develop their tourist portfolio in Dubrovnik. These investments are intended to commence in autumn this year.