Dolphin sells Amanzoe – Dolphin Capital Investors has agreed to sell its 100% interest in Amanzoe and 20 of its Kilada Hills Golf plots to Grivalia Hospitality S.A.. Grivalia is managed by Grivalia Properties, a real estate investment company listed on the Athens stock exchange. It also acquired DCI’s interest in Pearl Island, Panama in January 2017.
The cash consideration payable to Dolphin for Amanzoe is EUR5.8 million and the acquirers will also assume all existing liabilities of Amanzoe which amounted to EUR110 million as at 31 December 2017 (EUR74 million of which were borrowings). Amanzoe comprises a luxury hotel resort and beach club, 13 sold villas (8 of which have been delivered) and in excess of 20 available villa plots for sale. The hotel generated EBITDA of EUR4.5m in 2017.
The consideration reflects an enterprise value of EUR116 million for Amanzoe, representing a premium of 8% to DCI’s gross asset carrying value as at 31 December 2017 and will result in a surplus over carrying value on sale of EUR9 million.
Grivalia have also contracted to purchase 20 Golf plots in Dolphin’s Kilada Hills Golf project for a EUR10 million cash consideration, conditional on the company securing a senior development loan for the project, the issuance of final building permits and the tendering of a construction contract for the project’s first phase development.
The proceeds, less attributable costs, when combined with the senior development loan which the company is currently negotiating with a local bank, are expected to provide sufficient funds to enable Dolphin to complete the development of the first phase of the project. The first phase will include a championship 18-hole Jack Nicklaus Signature Golf Course (the plans for which are already in place), a Club House, a Beach Club and the infrastructure for the first cluster of residential Golf plots that will be made available for sale.
The completion of the first phase of the Kilada Hills development, the company’s most valuable asset in terms of net asset value as at 31 December 2017, is expected to unlock significant value.
The consideration for the 20 Kilada Golf plots reflects a significant premium to DCI’s gross asset carrying value as at 31 December 2017, after taking into account both their share of the overall development costs incurred on the project to date and the estimated attributable infrastructure costs to be incurred.
The disposal reduces total DCI Group loans from EUR98 million as at 31 December 2017 to EUR24 million, resulting in a pro forma gearing ratio for the group of 8% (31 December 2017: 25%).
DCI : Dolphin sells Amanzoe