With this capital increase of nearly 246 million euros, Millenium Hospitality is strengthening its position in order to pursue its growth and value creation plan.
Socimi Millenium Hospitality, a company specialising in the acquisition of high-end hotels, successfully completed a capital increase on Thursday 26 May 2022 for a value of EUR 245.7 million. The transaction was completed after the execution of the second stage of the capital increase approved in 2021, for an effective amount of €156.43 million in addition to the €89.3 million paid in the first stage.
Castlelake, an American investment fund, thus strengthens its position as the company's main shareholder to 49.72% of the share capital with the contribution of an effective total amount of €180 million, thereby doubling its commitment to the company.
Millenium points out that this transaction is the largest in the Spanish primary market since the beginning of the year, "which undoubtedly demonstrates the interest and attractiveness of its project for the investment community".
This capital increase is part of the company's development plan, which is based on the acquisition of high-end assets in attractive tourist destinations to be operated as luxury hotels. Its ambition is to have a portfolio worth €1 billion in the short term.
Several projects will be completed quickly with the capital increase and Millenium plans to complete several of the current acquisition processes in the short term, as well as to identify new investment opportunities in its core sector.
The strong support received is a clear indicator of the interest and attractiveness of Millenium's project and strategy, and is a strong endorsement of the company's management and the work done so far. This transaction, carried out in a changing and challenging market environment, puts us in a strong position to benefit from current market opportunities. Castlelake's support and commitment confirms the company's potential for growth and development.
Javier Illán, CEO of Millenium Hospitality
In addition, Millenium Hospitality has announced that its General Meeting of Shareholders, scheduled for 22 June, will vote to authorise the Board of Directors to initiate the procedures to change the trading market of the BME Growth segment to the Continuous Market.
