DCI : Dolphin Capital refinances its Amanzoe project
Dolphin Capital has announced that Colony Capital will loan Dolphin’s Amanzoe project €40m. The money will be used to return a €10m deposit from Archimedia, repay a loan from Dolphin Capital and finance the extension of the project.
Amanzoe is an Aman beach club, spa, villa and hotel development located at Porto Heli, Peleponnese in Greece. Dolphin say it is one of their most advanced projects – they expect the hotel to be generating revenue this year and they also hope to make sales of villas.
The loan is in the form of mezzanine finance with no recourse to Dolphin. Colony will be repaid via a waterfall arrangement whereby Colony gets 100% of revenue to fund its interest, 64% of revenue after that to fund the redemption of the loan and 25% of revenue after that until it has earned a 16% IRR. Dolphin has the option to pay the loan at 1.35x the par value or a value equivalent to a 16% IRR – whichever is the higher.