Genova divests two hotel properties in Palma, Mallorca for approximately SEK 410m
As previously announced, Genova has evaluated a sale of assets in Spain that are not of a long-term strategic nature for the company. Genova has signed an agreement to divest these assets, two fully leased hotel properties in Palma, Mallorca, for approximately EUR 35m, corresponding to approximately SEK 410m. The properties are low-leveraged and the divestment provides Genova with net liquidity of approximately SEK 350m, which is planned to be used to reduce the company's indebtedness.
The property Concepcio 34 is an investment property while the property Can Oliver is under ongoing construction. Both properties are leased to Nobis on long-term contracts. Genova acquired the properties with vacant premises in 2016 and has since developed them into five-star hotels, the first of which was completed in June 2021 and the second will be completed in July/August 2023. Total lettable area amounts to approximately 5,300 sqm.
"It is gratifying to be able to divest non-strategic and low-leveraged assets in the challenging market we are in. The divestment releases significant liquidity which we will use to reduce Genova's indebtedness and strengthen the balance sheet," comments Michael Moschewitz, CEO of Genova Property Group.
Transfer of possession is planned for September 2023.
For further information, please contact:
CEO, Michael Moschewitz, mobile +46 (0)70-713 69 39, [email protected]
About Genova
Genova Property Group AB (publ) is a modern property company with a personal touch that owns, manages and develops properties with focus on Greater Stockholm area and Uppsala Region. On 31 March 2023, the value of the company's property portfolio amounted to approximately SEK 10.2 billion with a lettable area of approximately 369,000 sqm and the company held approximately 9,200 building rights for residential units. Genova's share has been listed on Nasdaq Stockholm since 2020.
Genova – Smålandsgatan 12 – SE-111 46 Stockholm – www.genova.se
