Singapore’s GIC invests in Mediterranean resort group Sani/Ikos

Singapore’s GIC invests in Mediterranean resort group Sani/Ikos

Singapore’s sovereign wealth fund GIC is acquiring a majority stake in Sani/Ikos Group (SIG), a luxury beach resort group in the Mediterranean.

The transaction values the Sani/Ikos Group at €2.3 billion, both companies said in a joint statement.

The transaction is expected to close in the 4th quarter of 2022, subject to customary regulatory approval.

The founders, Stavros Andreadis, Andreas Andreadis and Mathieu Guillemin, will remain significant shareholders in the group.

Funds managed by Oaktree Capital Management L.P., funds managed by Goldman Sachs Asset Management, Moonstone, Florac and Hermes GPE will sell their stakes to GIC as part of this transaction.

Andreas Andreadis and Mathieu Guillemin will continue to manage SIG as CEOs and Co-Managing Partners, while Stavros Andreadis will become Honorary Chairman of the Group.

”The new partnership with GIC will strengthen the resources available to the Group to deliver on its five-year investment plan of over €900 million, contributing to the support of local economies and the creation of new jobs in the Mediterranean,” said in the statement.

SIG has also gained recognition among the industry for its continuous commitment to social responsibility and a future of sustainable tourism. The Sani Green programme, which launched in 2008, and Ikos Green, which began at the brand’s inception, have developed over the years into an integrated, award-winning ESG programme that focuses on delivering positive environmental, social, and economic results.

“We are excited to welcome GIC on board and look forward to bringing the Sani/Ikos Group magic to guests across the Mediterranean and beyond”, said Andreas Andreadis and Mathieu Guillemin, CEOs of the Sani/Ikos Group. “Over the past years, the Sani/Ikos Group has led a remarkable path, with significant investments, international expansion and strong financial performance. This was achieved despite the pandemic and thanks to the support of our shareholders, who were outstanding partners, and to our management and employees whose dedication and talent are second to none in our industry. We can now solidify our leading position across the Mediterranean, to the benefit of our shareholders, our people and the communities where we operate.”

Lee Kok Sun, Chief Investment Officer of Real Estate, GIC, said: “We are pleased to partner the Sani/Ikos Group as they continue their efforts to strengthen their brand and expand their presence in Europe. The group’s assets are well-located and the team is known for providing excellent hospitality experiences. We believe this investment will generate resilient returns and is testament to our confidence in the Greek and wider European tourism sector over the long term.”

Tracy Stroh, Region Head of Europe, Real Estate, GIC, said: “Given its strong brand, we believe the Sani/Ikos Group is well-positioned to capitalise on the growth of the Mediterranean Europe resort market. We look forward to working with SIG’s management team to add value by enhancing existing assets and offering attractive resort accommodation in the region.”

On 22 July 2021, Sani/Ikos Financial Holdings 1 S.à r.l. issued €300,000,000 5.625% Senior Secured Notes due 2026 (the “Notes”). The Notes include a portability feature and are expected to remain in place following closing of this transaction.