Singaporean investor GIC has taken the joint largest stake of Mediterranean resort firm Sani/Ikos Group (SIG) alongside SIG’s management team.

The strategic partnership transaction valued the luxury hotel operator at €2.3 billion and is expected to close in Q4 2022, subject to regulatory approval.

Founder involvement

Under the leadership of its founders, Stavros Andreadis, Andreas Andreadis and Mathieu Guillemin, who remain significant shareholders, SIG has grown from the family-owned Sani Resort in Greece to a fast-growing luxury resort owner-operator in the Mediterranean.

Since its creation in 2015 SIG has expanded its asset base and scale by a factor of four with the backing of blue-chip investors including funds managed by Oaktree Capital Management, Goldman Sachs Asset Management, Moonstone, Florac and Hermes GPE who will be selling 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.

Investment plan boost

The new partnership with GIC is aimed at further strengthening 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.

Andreadis and Guillemin stated: “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. 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.”

Currently under development is Ikos Odisia, a 395-room resort heading to Corfu, Greece, in Q2 2023, as well as the 319-key Ikos Porto Petro, opening in Mallorca, Spain next year.

Continuing European expansion

GIC’s chief investment officer of real estate, Lee Kok Sun, 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.”

The investor’s region head of Europe, real estate, Tracy Stroh, added: “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.”

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