Pro Kapital concludes contract for sale of Tallinn and Riga hotels
AS Pro Kapital Grupp, an Estonian-based holding company has concluded in late July the contracts for the sale of group hotels PK Ilmarine and PK Riga. The object of the Transaction is the sale of both operating activities and real-estate of hotels.
Transactions concerning the Estonian segment involved the sale of 100% shares of OU Hotel Management Services, operator of PK Ilmarine Hotel, and sale of real-estate used by PK Ilmarine Hotel, including parking. Transaction is completed, ownership of assets relating to hotel are transferred.
Transactions concerning the Latvian segment involved the conclusion of sale contract for sale of 100% shares of SIA Hotel Management Services (operator of PK Riga Hotel) and sale of 100% shares of SIA Investhotel (owner of real-estate of PK Riga Hotel). Completion of the transaction is dependent on conditions to be fulfilled by the buyer, buyer has until September 30, 2017 to complete the conditions.
Estimated amount of the transaction is 12,957,777 EUR, of which 6,878,741 EUR is the amount allocated to PK Ilmarine Hotel (Estonia) and base price of PK Riga Hotel (Latvia) is 6,079,036 EUR. The exact price of the Latvian transaction will be determined upon closing of the transaction, as the price is dependent on the result of economic activity of the hotel as of the closing. 630,000 EUR has been paid upon signing and the rest will be paid upon closing of the Latvian transaction.
AS Pro Kapital Grupp CEO Paolo Michelozzi commented: “The goal of the transaction, including the disposal of the shares, is to exit the Tallinn and Riga hotel market, which has not been a core business for the group. The Tallinn and Riga hotel market is in a positive state, so for us it is the right moment for the exit. Our goal is to concentrate on development of residential and commercial real-estate and to use the monetary resources received from the transaction to speed up the development of our core business, in the market which has positive trends”.