David Fattal (PR)
Fattal Properties (Europe) announced this morning (Sunday) that it has completed a raise to purchase hotels in Europe amounting to 315 million euros. The project, which will be managed by Fattal, is a partnership of Leumi Partners, which also accompanied the recruitment, Harel Insurance and Menora Mivtachim. The amount will constitute equity for purchases of hotels in Europe totaling up to one billion euros managed by the Fattal chain.
The report shows that Menora undertook to invest about 100 million euros in the project, Harel undertook to invest about 100 million euros and Leumi Partners undertook to invest 15 million euros. The balance of EUR 100 million will be invested by Fattal Properties (Europe) Ltd. Fattal has committed to the partnership that during the investment period, it undertakes to offer the venture exclusively all investment opportunities in Europe that match the venture’s strategy. It should be noted that in the last two months Fattal Europe acquired Two hotels in Malaga and Mallorca in Spain that include about 260 rooms with a total cost of about 40 million euros, which it will transfer to the venture.
More in-
Shahar Aka, director and CFO of the company “The Corona Crisis has created opportunities in Europe for the purchase of hotel properties at attractive prices. To this end, we decided to raise the money together with leading partners in the world of finance in Israel, who saw the network’s extensive knowledge and reputation in the field as an opportunity that is expected to bring them a return on investment. The company’s management has been exposed in recent months to many opportunities on the continent and we estimate that additional opportunities will be created in 2022 by hotel owners, who will have to refinance loans previously taken from banks and run into a financing problem.
The purpose of the project is to yield a return for investors, similar to what the Fattal Group did in the Fattal Properties (Europe) Ltd. The capital of the subsidiary, which owns over 50 properties in Europe, was about 185 million euros when the bonds were first issued (Series A). ) In 2016 and as of the end of 2021, it stood at about 356 million euros, which reflects an increase in value of about 120% without additional cash flow to the subsidiary from the owners and after withdrawing a dividend of 49 million euros during 2021.
The Fattal chain is considered one of the most prominent chains in Europe and the largest in Germany. We have proven that we know how to improve the assets we have in Israel and abroad, increase revenues and directly proportion the value of hotels. “For about 400 million euros. I will take this opportunity and wish the whole house of Israel a happy holiday and a pleasant vacation.”
Comments on the article(0):
Your response has been received and will be published subject to system policies.
Thanks.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment