GIC Buying Top Stake in $2.3B Mediterranean Resort Operator Sani/Ikos

GIC has entered a strategic partnership under which the Singapore sovereign wealth fund will become the leading shareholder in Sani/Ikos Group, a Mediterranean luxury resort owner-operator, alongside the Greek-based firm’s management team.

The transaction values Sani/Ikos at €2.3 billion ($2.3 billion), the partners said Thursday in a release. The deal is expected to close in the fourth quarter of 2022, subject to customary regulatory approval.

GIC is buying its stake in Sani/Ikos from exiting investors including funds managed by Oaktree Capital Management and Goldman Sachs Asset Management, as well as smaller firms Moonstone, Florac and Hermes GPE. A report in the Financial Times described the acquisition as a majority stake.

“We are pleased to partner the Sani/Ikos Group as they continue their efforts to strengthen their brand and expand their presence in Europe,” said Lee Kok Sun, chief investment officer of real estate at GIC. “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.”

Favourable Winds

Sani/Ikos was founded in 2015 by Stavros Andreadis, Andreas Andreadis and Mathieu Guillemin, who remain significant shareholders. On completion of the deal, Guillemin and Andreas Andreadis will continue to manage the group as CEOs and co-managing partners, while Stavros Andreadis will become honorary chairman of the group.

Under the brand names Sani and Ikos, the group develops, owns and operates more than 2,750 rooms and suites across 10 resorts in Greece and Spain. Sani/Ikos has secured four more projects in Greece (Corfu and Crete), Spain (Mallorca) and Portugal (Algarve) for further expansion from 2023 to 2025.

Bookings at Sani/Ikos resorts are up 52 percent this year compared with 2021, according to the group. The partnership with GIC is expected to further strengthen the resources available to deliver on a five-year investment plan totalling more than €900 million.

“Given its strong brand, we believe the Sani/Ikos Group is well-positioned to capitalise on the growth of the Mediterranean Europe resort market,” said Tracy Stroh, head of Europe real estate at GIC.

Betting on Recovery

GIC continues to bank on a post-pandemic rebound in travel demand, with the Mediterranean venture following the fund’s February purchase of Seibu Holdings’ portfolio of 15 Prince hotels and 16 additional leisure properties in Japan for $1.3 billion.

The world’s most active state-owned sovereign wealth fund has beefed up its exposure overseas, having signed three deals worth more than $15.6 billion since August.

Last week, GIC announced it was teaming up with Oak Street, a division of New York-based asset manager Blue Owl Capital, to acquire the Warren Buffett-invested Store Capital REIT for $14 billion in cash.

Late last month, the Singaporean investor reportedly backed Florida-based real estate investor and operator Workspace Property Trust in purchasing a majority stake in 41 suburban office assets with combined space of 8 million square feet (743,224 square metres). The $1.13 billion acquisition was supplemented by debt financing from JP Morgan and Canada’s Bank of Montreal.

Also in August, GIC made a bet Down Under with the purchase of a half stake in an A$800 million ($568 million) Melbourne office project from Australian property giant Charter Hall.