Pro Kap­i­tal con­cludes con­tract for sale of Tallinn and Riga ho­tels

The Baltic Times - - RE NEWS -

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”.

www.eu­roin­vestor.com

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