Transaction: Divestments
Date: June 2017
Deal value: EUR +100 million
Process: Private auction
Industry: Financial and real estate

See more references for this client type
See more references for this service

Divestment of HPG hotel portfolio

FIH Partners advises the shareholders of Hotel Property Group on the divestment to Balder.

Hotel Property Group owns a portfolio of four attractive hotels on central locations in Copenhagen with a total of +450 rooms. The hotels are Copenhagen Star Hotel, Copenhagen Mercur Hotel, Copenhagen Plaza Hotel and Richmond Hotel. Copenhagen Star Hotel and Copenhagen Mercur Hotel are operated internally by Hotel Property Group, while Copenhagen Plaza Hotel and Richmond Hotel are operated under lease contracts by 3rd party hotel operator, Profil Hotels.

The acquirer, Fastighets AB Balder, is a listed Swedish real estate company that owns, manages and develops residential and commercial properties and hotels in Sweden, Denmark, Norway and Finland. As of 31 March 2017, Balder’s property portfolio had a value of SEK 88bn.

FIH Partners has acted as exclusive financial advisor to the shareholders:

  • Assisting in preparing documentation of historical performance, underlying market drivers and financial forecast

  • Assisting in preparing vendor due diligence work including financial, technical and commercial reports

  • Arranging a competitive structured sales process targeted towards a broad audience of hotel operators, financial buyers, real estate companies and fully integrated hotel groups

  • Negotiating final terms of the transaction

The enterprise value of the transaction is EUR +100 million