The Algarve-based Oceanico Group's owner has authorised the sale of seven further tourism businesses after the successful sale of the Vilamoura golf courses in 2016.
The portfolio, on offer through Savills, includes two signature golf courses, over 300 holiday properties, leisure facilities and further development land.
Property adviser Savills will represent Oceanico in the sale of: The Amendoeiro Golf and Leisure Resort, Belmar Spa and Beach Resort, Baia da Luz Residential Resort, Estrela da Luz Leisure Facilities, Jardim da Meia Praia Leisure Facilities, Flor do Mar Holiday Resort development site and Royal Obidos Holiday Villa development site.
Six out of the seven sites are in the Algarve, the exception is the Royal Obidos Holiday Villa Development Site near the Royal Obidos Spa and Golf Resort located near Peniche to the north of Lisbon.
The portfolio offers the opportunity to acquire the existing trading businesses together with capital receipts generated by selling remaining holiday properties.
The largest asset in the portfolio is the well-respected Amendoeira Golf and Leisure Resort near Alcantarilha, Silves. This complex, which extends over 255 hectares, comprises 241 holiday homes, two 18-hole golf courses, clubhouse, additional sporting facilities and further development land.
“In the last three years, we have seen a surge in our golf course and holiday business performance, driven by the quality of our resorts and the enduring appeal of the Algarve as a European and international holiday destination,” said Chris Howell, chairman of Oceanico Group, as reported in Development Finance Today.
“Sale of the Oceanico portfolio will offer developers, operators and investors a rare opportunity to immediately capitalise on the strength of this market through holiday property sales and further growth in long-term trading performance,” added Howell.
Ian Simpson, director in the leisure and trade related team at Savills, commented to algarvedailynews, “We are delighted to bring this diverse portfolio to the market on behalf of our client. The mixture of assets including leisure facilities, holiday accommodation, golf courses and development land makes this a unique opportunity for an investor.
"Not only will they be purchasing an established trading business with further growth potential but also a substantial stock of built residential and holiday accommodation together with additional hotel and holiday development plots which provide opportunities to expand the business over time.”
Simpson confirmed that the ultimate shareholder in Oceanico Group is the original lender to the development, “who has supported the business through the last recession and has invested further capital to enable the portfolio of Oceanico properties to trade successfully as growth returned to the Portuguese economy.
“Following the sale of five of the Oceanico golf courses at Vilamoura in 2016, the remainder of the Oceanico portfolio is now being offered for sale, as market conditions are positive, and the business is in good shape.”
When asked why the company’s assets are offered for sale, rather than the Oceanico company itself, Simpson confirmed that “the assets will be sold by transfer of shares in the relevant company, or in the case of Belmar, the fund units through which the asset is held.”
The establishment of Oceanico and its subsequent difficulties though the recession have widely been reported in the Algarve and beyond. This final division and disposal of the group’s assets should mark the end of the current corporate structure, with the possibility of separate buyers for each of the main assets on offer.
In September 2016, Oceanico sold its Vilamoura courses to KAY CC Portugal, a partnership between investor Keith Cousins and the Dom Pedro Hotels Group in the Algarve, according to reports at that time.(Click)
Simpson said, “We are receiving strong interest in the portfolio - they are high quality assets and it is trading well under a highly dedicated management team led by Oceanico Chairman Chris Howell.
“Amendoeira, in particular, offers further development potential but requires additional capital investment to release this potential, which is something that the current shareholders do not wish to pursue.”
Oceanico Group was established as a high-end holiday resort development company, set up by entrepreneur Gerry Fagan and Simon Burgess 14 years ago.
The recession hit all leisure related businesses hard and Ireland's National Asset Management Agency assumed control of Oceanico's bank loans in 2012.
Discussions on the sale of Oceanico's portfolio have been ongoing and the appointment of Savills to lead this disposal of assets is well-timed as Portugal's bust turns to boom and tourism businesses are benefitting from double-digit rises in visitor numbers.
Comments
Your egotistical reply to Peter Booker using acronyms that the majority of readers would not have come across unless they were in finance only highlights your narcissistic ineptitude, to paraphrase Enstein, "If you can't explain it so that a six year old can understand it, you don't understand it yourself."
“If you can't explain it to a six year old, you don't understand it yourself.”
― Albert Einstein
The answer looks absolutely clear to me. Some assets are held in SPVs and one in a more complicated structure.
Whilst the businesses may be successful on an EBITDA level, they will never support the level of original borrowings and thus it will be a question of NAMA or the current owner of the debt to decide when to crystallize the capital loss.
When someone does not want to answer question, they often give a reply which is gobbledegook and this reply means nothing to me. If the business is successful, why sell it?
So there's lots of unsold properties but you could make some money once they are all occupied.
Obviously the sellers have an insight into the future, or why else would they be forgoing further profitable investment when capital is available at the lowest interest rates since 1930.