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Dolphin Capital asset disposals gather pace in 2018

Dolphin Capital asset disposals gather pace in 2018 – Dolphin Capital (DCI), the Mediterranean focused developer and investor in luxury residential and resort projects, made a number of sales in 2018 as part of ongoing efforts to fully divest its portfolio. Taking into account deferred tax liabilities, NAV was down 14% in the year to December 31, 2018. Write-downs and impairment charges of €19m on the DCI portfolio were the main factors behind the NAV number.

Asset sales the main focus

Management is focusing on accelerating asset divestments as part of a wider initiative to improve liquidity and return capital to shareholders, following approval of the new asset strategy by shareholders in 2016.

The initial plan was to complete the full divestment of the company’s assets by 2019. However, the company has said that it considers that the timeline for the full disposal, in an orderly manner, of the remaining assets of its assets by the end of 2019 to be unachievable. The board plans to present proposals to shareholders in the near future for an extension to the current timetable of two years, combined with an amendment to the management fee structure which will align such fees to the level of distributions to shareholders.

Key 2018 divestment highlights:

  • In January, DCI entered into an agreement for the disposal of its 77.8% interest in the Sitia Bay Resort project for a total cash consideration of €14m
  • In February, DCI sold its 100% interest in Triopetra for a total consideration of €4.1m
  • In August, the Company entered into an agreement with Grivalia Hospitality for the disposal of its 100% interest in Amanzoe and the conditional sale of 20 Kilada Hills Golf plots for a €10m in cash

Strategy discussion

Commenting on DCI’s strategy, chairman, Andrew Coppel, said: “We made significant progress in disposing a number of portfolio assets during the year. Our attention is now focussed on the commencement of construction at the One&Only at Kea Resort and the first phase of the Kilada Hills Golf Resort within 2019 which, together with the company’s strategic shareholding in Aristo Developers, we consider critical in our efforts to realize tangible value for our shareholders.”

Miltos Kambourides, founder of DCI and managing partner of Dolphin Capital Partners added: “Whilst market conditions for disposals in our geographic area of operation remain challenging, we are encouraged by the disposals realized in 2018 and the continued improvement in the economic landscape in both Greece and Cyprus. We are working closely with the board to formulate a realistic exit strategy for each remaining asset.”

DCI: Dolphin Capital asset disposals gather pace in 2018

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