Premia Properties, an Athens-based real estate investment company, has announced an acquisition deal with Nordic Leisure Travel Group (NLTG) to purchase Sunwing Hotels in Greece for €112.5 million.
This move marks an expansion in Premia's hospitality portfolio, adding two renowned resorts located on the Greek islands of Rhodes and Crete.
Details of the Acquisition
The transaction includes two 4-star resorts: Sunwing Kallithea Beach in Rhodes and Sunwing Makrigialos & Ocean Beach Club in Crete. Sunwing Kallithea Beach boasts 534 rooms spread over a plot area of 118,000 sqm, with a total gross built area of 42,700 sqm. Sunwing Makrigialos & Ocean Beach Club, located in Ierapetra, Crete, features 262 rooms on a 54,000 sqm plot, with a gross built area of 25,200 sqm. Both resorts have been key players in the region's hospitality sector for decades.
“The transaction marks a strategic choice for the entry of PREMIA Properties in the growing hospitality sector in Greece. This investment increases significantly both PREMIA’s property portfolio size and investment income.” - Kostas Markazos, CEO of PREMIA PROPERTIES
“We are very happy to proceed with this strategic action joining forces with one of the largest tourism companies in Europe that was founded and has its headquarters in Scandinavia, with a significant presence in Greece. I want to personally thank Mr. Petter Stordalen who trusted us with this very important investment step for PREMIA Properties. This collaboration opens the horizon for new investment opportunities in the sector of tourism with our new strategic partner.” - Elias Georgiadis, CEO of STERNER STENHUS and Chairman of PREMIA
Sale-and-Leaseback Agreement
Under the terms of the sale-and-leaseback agreement, Nordic Leisure Travel Group will continue to operate both properties. The agreement includes a long-term triple-net lease arrangement for an initial term of 15 years, with options to extend for an additional ten years (five years plus five years). This strategic partnership allows NLTG to maintain operational control and continue providing quality service to guests. The seller, NLTG HH Greece Single Member S.A., is a subsidiary of Nordic Leisure Travel Group, a travel operator based in Stockholm, Sweden. The company is owned by a group of Scandinavian private investors, including Strawberry Group with a 39.7% ownership interest, Altor Funds with 39.7%, TDR Capital with 19.9%, and other investors along with NLTG management holding 0.7% via NLTG MIPCo.
“I am happy that we have entered this strategic partnership with PREMIA Properties as it will make it possible for us to explore and develop new concept hotels in Greece for the benefit of our Nordic guests. Greece is our biggest destination country for the summer season, and we see especially strong demand for our own hotel concepts to Greece.” - Magnus Wikner CEO of NLTG
“The deal marks an exciting chapter and we are thrilled to announce our new collaboration with PREMIA Properties. By combining NLTG Group's comprehensive knowledge within hospitality and PREMIA and Elias Georgiadis's impressive entrepreneurial track record, I am confident we will create both value and growth. I have experienced firsthand the importance of collaborating with professional property owners abroad, and I look forward to continuing our Greek adventure together with our new partner.” - Petter Stordalen, founder and owner of Strawberry Group
Strategic Partnership
This acquisition highlights the collaborative potential between real estate investment firms and established travel operators. The National Bank of Greece is financing the transaction, and it has also executed the underwriting. Furthermore, the deal is expected to close by the fourth quarter of 2024, pending regulatory approvals, including from the Competition Commission.
