TIDMDCI
RNS Number : 5573W
Dolphin Capital Investors Limited
02 August 2018
2 August 2018
THIS DOCUMENT CONTAINS INSIDE INFORMATION
DOLPHIN CAPITAL INVESTORS LIMITED
("DCI" or "Dolphin" or the "Company",
together with its subsidiaries, the "Group")
Disposal of Amanzoe and 20 Kilada Hills Golf plots
The Board of DCI, a leading investor in high-end residential
resorts in the eastern Mediterranean, is pleased to announce that
it has entered into a conditional agreement for the disposal of its
100% interest in Amanzoe and the sale of 20 Kilada Hills Golf plots
(the "Disposal") to Grivalia Hospitality S.A. ("Grivalia").
Grivalia is managed by Grivalia Properties, a real estate
investment company listed on the Athens stock exchange, and also
acquired DCI's interest in Pearl Island, Panama in January
2017.
The Disposal cash consideration payable to Dolphin for Amanzoe
is EUR5.8 million and the acquirers will also assume all existing
liabilities of Amanzoe which amounted to EUR110 million as at 31
December 2017 (EUR74 million of which were borrowings).
Amanzoe comprises a luxury hotel resort and beach club, 13 sold
villas (8 of which have been delivered) and in excess of 20
available villa plots for sale. The hotel generated EBITDA of
EUR4.5m in 2017.
The Disposal consideration reflects an enterprise value of
EUR116 million for Amanzoe, representing a premium of 8% to DCI's
gross asset carrying value as at 31 December 2017 and will result
in a surplus over carrying value on sale of EUR9 million.
Grivalia will purchase DCI's entire stake in Amanzoe through the
acquisition of 100% of the shares in DolphinCI Fourteen Ltd, the
holding company owning the project, and all related entities
currently owned by the Group. Completion of the Disposal is
conditional on the completion of certain procedural steps for the
transfer of the respective shares and the finalization of certain
legal opinions relating to the transaction. The Board expects that
these will be finalized, or waived, by the end of September
2018.
At the request of Grivalia, the asset management of Amanzoe will
be continued by Dolphin Capital Partners Ltd, the Company's
Investment Manager, who will also acquire a 15% equity stake in
Amanzoe from Grivalia on pari passu terms following the completion
of the Disposal.
As part of the Disposal, Grivalia have contracted to purchase 20
Golf plots in Dolphin's Kilada Hills Golf project for a EUR10
million cash consideration, conditional on the Company securing a
senior development loan for the project, the issuance of final
building permits and the tendering of a construction contract for
the project's first phase development.
The proceeds from Amanzoe cash consideration and the sale of
these plots, less attributable costs, combined with the senior
development loan which the Company is currently negotiating with a
local bank, are expected to provide sufficient funds to enable
Dolphin to complete the development of the first phase of the
project. The first phase will include a championship 18-hole Jack
Nicklaus Signature Golf Course (the plans for which are already in
place), a Club House, a Beach Club and the infrastructure for the
first cluster of residential Golf plots that will be made available
for sale.
The Disposal is in line with the Board's decision to accelerate
asset divestments, and follows the Group's sale of its shareholding
interests in Sitia Bay Resort and Triopetra Resort in Crete earlier
this year. Importantly, the completion of the first phase of the
Kilada Hills development, the Company's most valuable asset in
terms of net asset value as at 31 December 2017, is expected to
unlock significant value.
The consideration for the 20 Kilada Golf plots reflects a
significant premium to DCI's gross asset carrying value as at 31
December 2017, after taking into account both their share of the
overall development costs incurred on the project to date and the
estimated attributable infrastructure costs to be incurred.
Of the total EUR5.8 million cash consideration for Amanzoe,
EUR0.5 million has been already paid by Grivalia in the form of a
non-returnable deposit and EUR5.3 million will be paid upon
completion of the Disposal. The EUR10 million cash consideration
for the purchase of the 20 Kilada Hills plots will be paid in
instalments, in line with the draw-down of the senior construction
loan for the development of the first phase of the project.
The Disposal reduces total DCI Group loans from EUR98 million as
at 31 December 2017 to EUR24 million, resulting in a pro forma
gearing ratio for the Group of 8% (31 December 2017: 25%). All of
the remaining debt is asset based and non-recourse to DCI.
Following the completion of the Disposal, DCI will hold the
following properties (figures as at 31 December 2017):
Real estate
Land site DCI's Debt value
PROJECT (hectares) stake (EURm) (EURm)
----------------------------- ------------ ------- -------- ------------
1 Kilada Hills Golf Resort 235 100% -
2 Kea Resort 65 67% -
3 Livka Bay Resort 63 100% 8
4 Scorpio Bay Resort 172 100% -
5 Apollo Heights Polo Resort 461 100% 16
The Nikki Beach Resort
6 & Spa 1 25% -
7 Plaka Bay Resort 442 100% -
8 Lavender Bay Resort 310 100% -
9 La Vanta - Mediterra Resorts 8 100% -
TOTAL 1,757 24 236
----------------------------- ------------ ------- -------- ------------
ARISTO CYPRUS 1,448 47.9% - 43
Itacaré Investment n/a 13% - 1
GRAND TOTAL 3,205 280
----------------------------- ------------ ------- -------- ------------
Commenting on the disposal, Andrew Coppel CBE, Chairman of the
DCI Board, said:
"The Disposal reflects our commitment to generate liquidity
through the reduction of the Group's overall leverage and financing
costs whilst, in parallel, delivering value for our shareholders
through the development of the first phase of the Kilada Hills Golf
project. Following our JV with One&Only for the development of
the One&Only resort at Kea, this Disposal is expected to
provide the funds required for the development of the first phase
of our Kilada Hills Golf project through the use of the EUR10
million Golf plot sales proceeds and senior construction loans and
without any additional equity investment. We believe that the
completion of the Jack Nicklaus Signature Golf Course, together
with the project's Golf and Beach Clubs and infrastructure, will
substantially enhance the project's value and divestment potential
for shareholders."
Miltos Kambourides, Company Founder and Managing Director of
Dolphin Capital Partners, said:
"We are proud to have developed Amanzoe to its current status as
an iconic asset which has been consistently recognized as one of
the top resorts in the Mediterranean. We remain confident that it
will continue to offer its guests and villa owners the highest
quality of services. This is an important Disposal for DCI as it is
expected to provide sufficient funds to enable it to develop the
first phase of Kilada Hills, our most valuable asset, with no
additional equity contribution from the Company."
Enquiries:
Dolphin Capital Investors
Andrew Coppel, CBE +44 (0) 7785 577023
Dolphin Capital Partners
Miltos E Kambourides miltos@dolphincp.com
Panmure Gordon
(Broker)
Richard Gray / Dominic Morley / Andrew
Potts +44 (0) 20 7886 2500
Grant Thornton UK LLP
(Nominated Adviser)
Philip Secrett +44 (0) 20 7383 5100
Instinctif Partners
(PR Communications Adviser)
Mark Garraway +44 (0) 20 7457 2020
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END
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