Sancus Capital, the firm led by Borja Escalada, has reached an agreement with Castlelake and other shareholders to acquire approximately 53.5% of Hotei Properties, a SOCIMI specialising in five-star hotel assets. The transaction involves a change in the controlling shareholder and includes an offer on the same terms to the remaining shareholders to acquire up to 100% of the share capital.
The agreement is subject to the fulfilment of certain conditions. These include approval by Hotei’s General Meeting of Shareholders of the sale of the Hotel Nomade in Madrid, a transaction for which the SOCIMI has already announced a binding agreement.
The transaction provides for a price of up to €3.20 per share, net of any distributions made to shareholders between the date of the agreement and the closing of the transaction, whether in the form of dividends or a share premium. At that price, the purchase of 53.5% of the share capital would be valued at around €199 million, prior to the adjustments expected up to the closing of the transaction.
According to information provided by Sancus Capital, this amount represents a 16% premium on the share price and, when added to the distributions made since the firm took over the management of Hotei Properties and the appointment of Borja Escalada as CEO, represents a share price appreciation of nearly 85% over 18 months.
The relationship between the two companies began 18 months ago, when the firm entered into a strategic alliance with Hotei Properties regarding its potential entry as a shareholder and its involvement in defining and executing the SOCIMI’s strategy. With the agreement now announced, it will take a majority stake in the company, while Escalada will continue as CEO.
In addition to his role as head of the management company, Escalada is a partner and chief executive of Sancus Hotels, the entity that owns Rosewood Villa Magna and Bless Madrid, two hotels located in the capital and acquired in November 2022. The group manages over €2 billion in assets across the hospitality, renewable energy, real estate, private equity and venture capital sectors, and operates its hotel business through this vehicle, which specialises in the investment and management of luxury and ultra-luxury assets.
