Procopiou Takes Full Ownership of Astir Palace Hotel Group

Greek shipowner George Procopiou has finalized the purchase of the Astir Palace Vouliagmeni hotel group, securing 100% ownership. The deal, concluded Wednesday evening, saw Procopiou acquire the remaining 77% stake held by Arab investment funds. This follows his October 2022 acquisition of a 33% share from Turkish group Dogus for €150 million, valuing the complex at €450 million at the time.

While the price paid for the final 77% hasn’t been disclosed, it’s speculated that Procopiou paid a premium for full control. This comes after substantial returns to shareholders from the sale of 13 ultra-luxury villas built on the former Aphrodite hotel site, reportedly totaling €450 million. Published financial statements indicate €317 million in returns over the past three years: €160 million in 2021, €37 million in 2022, and €120 million in 2023.

With the two Four Seasons hotels in the complex boasting a combined 303 rooms, the average price per room now stands at approximately €1.5 million, placing it among the highest globally. Beyond the hotels, Astir Palace also encompasses the Astir Marina, high-end restaurants like Matsuhisa Athens and Beefbar, the Astir beach, and various commercial spaces according to gct.

Astir Palace was initially privatized in October 2016 through a joint tender by the National Bank of Greece and the Hellenic Republic Asset Development Fund (TAIPED). AGC Equity Partners, specifically its Jermyn Street Real Estate Fund IV LP, won with a €444 million bid. However, the total investment, including delisting the company from the stock exchange and funding the development plan, exceeded €650 million, partially financed by a €200 million bond loan from Greek banks.

The initial ownership structure included Dogus (33.75%), Abu Dhabi’s Hanover Investment (25%), Kuwait’s state insurance fund (25%), and five smaller, predominantly Arab investors according to gct.

Source: pagenews.gr