Cerberus Improve Their Bid For Sotogrande

NH Hotel Group nears signing a contract on transferring its real estate affiliate Sotogrande to Cerberus for €225 million. The transaction is expected to be nailed down within the next weeks.

However, still yesterday NH assured the National Stock Market Commission that sale of the asset which has been in the group´s hands since 2006 is not confirmed. The Sotogrande complex at stake stands in the city of San Roque (Cadiz). Thus, the outside-of-Spain projects, located in Italy, Mexico and in the Dominican Republic will remain in possession of NH but sooner or later they will be sold as well.

Likewise, NH will still rent the two 4* hotels situated inside the complex, totalling 254 rooms. The group will destine the proceeds from the sale for trimming its €801 million indebtness.

Investment funds Cerberus and Orion, through their joint venture Sotogrande Luxco, have increased their bid for Sotogrande. In a relevant event notice sent to the Stock Market Regulator, the partners announced that instead of original price of 4.43 euros a share, they are going to pay 4.47 euros to buy out the company held 96.997% by NH Hotel Group.

Cerberus and Orion bettered their offer after Ernst & Young povided valuation of Sotogrande’s 50% stake in Capredo Investments. Moreover, the proposal will be considered as a sale, and not as a share swap, and therefore the payment will be realized in cash.