Prodea gains 80% of MHV following €254 million 55% purchase from Yoda PLC

PRODEA Investments (Prodea) has completed the acquisition of an additional 55% stake in Mediterranean Hospitality Venture PLC (MHV) from the Cypriot group of companies Yoda PLC, now forming the total stake of its participation in MHV to 80%. The total price was €254 million.

The acquisition is considered to significantly strengthen Prodea's presence in the hotel industry, contributing to a significant increase in the size of its hospitality real estate portfolio, which is now valued at €660 million and includes approximately 1,800 rooms.

By leveraging MHV's experience and expertise in the hospitality industry and the resulting synergies in its existing and future hotel units, Prodea aspires to make MHV the leading high-end hospitality company in Southern Europe.

The Executive Chairman of Prodea's Board of Directors and Chairman of the Investment Committee, Christophoros Papachristophorou, commented, "The hospitality and tourism industries contribute significantly to the GDP of Southern European countries. Prodea has been investing in this sector for years and, directly or indirectly, has acquired a number of landmark properties and extensive experience.

It's time to take our presence and experience in the industry to a new level. We are creating a leader in the hospitality space and are offering for the first time the opportunity for investors, through Prodea, a company listed on the Athens Stock Exchange, to gain access to this exciting and fast-growing industry."

At the same time, as part of the ongoing effort to expand and diversify the company's shareholding base, Prodea announced that, on 24 January 2024, Yoda PLC, a prominent Cypriot group of companies, acquired a 5.22% stake in Prodea. This strategic investment confirms the confidence experienced international investors such as Yoda have in Prodea's growth prospects and in its team, which combines excellent local market knowledge with international expertise, the company said.

The CEO of Prodea, Aris Karytinos, commented, “Yoda PLC's investment in Prodea is a vote of confidence in the vision, strategy and capabilities of all our team members. We welcome Yoda PLC and look forward to capitalising on their experience and skills to create new opportunities and strengthen our market position.”

On his part, Yoda CEO Alon Bar commented, "Working with Prodea and Invel, we are proud to have established MHV, over the last 3 years, as one of the leading hosting platforms in the Mediterranean and we are confident that Prodea has the appropriate guarantees to further continue this development path.

The real estate sector remains a cornerstone of the Yoda Group and we remain focused on capitalizing on growth opportunities in this strategically important sector.

We decided to invest in Prodea as it is the largest and most diversified in terms of investment product Real Estate Investment Company in Greece, excellently positioned in different real estate sectors, and we believe in its ability and commitment to create further value in its portfolio.”

MHV specializes in luxury hospitality and the development of high quality residential projects. Leveraging strategic partnerships with a network of distinguished international players in hospitality, food and beverage and luxury apparel, MHV focuses on creating premium quality destinations, the company notes.

It adds that MHV's competence and know-how are key drivers for optimizing the value of its assets, while at the same time enhancing the development of local communities in its areas of operation and its shares are listed on the Cyprus Stock Exchange, in the Emerging Companies Market category.

In its distinguished hotel portfolio, MHV has Parklane, a Luxury Collection Resort & Spa, Limassol, Nammos Limassol, LPM Restaurant & Bar, Park Tower Residences and The Landmark Nicosia in Cyprus. In addition, the portfolio is expanding in Greece with Nikki Beach Resort, Porto Heli and Porto Paros.

MHV has also said it is committed to expanding its portfolio with new investments in the wider Eastern Mediterranean region, with a primary focus on Greece and selective investment placements in Cyprus and Italy. As MHV continues its pursuit of excellence, it remains committed to creating top-quality experiences and making a positive contribution to the areas it serves, the company said.

YODA Plc had also announced the sale of its investment in MHV Mediterranean Hospitality Venture Plc (MHV) and the purchase of a stake in Prodea Real Estate Investment Company S.A.

In a notice submitted to the Cyprus Stock Exchange (CSE) on 24 January, YODA said, "Further to the announcement issued by YODA PLC on 11 December 2023, the Company hereby announces that Prodea Real Estate Investment Company S.A. (Prodea), being listed on the Athens Stock Exchange obtained the necessary approval from the Commission for the Protection of Competition of the Republic of Cyprus on 11 January 2024 and that on 24 January 2024 the transfer of MHV shares, which are listed on the CSE Emerging Companies Market, from Ascetico Limited (Ascetico), a 100% subsidiary of the Company, to Prodea, took place."

As mentioned in the announcement dated 11 December 2023, the Company’s wholly-owned subsidiary has entered into certain sale and purchase agreements.

More specifically the following transactions have been unanimously approved by the board of directors of the fully owned subsidiary company Ascetico and entered into by Ascetico:

(a) The sale of the entire stake, i.e., 66.109.196 ordinary shares or c. 55.0% of MHV’s issued share capital held by Ascetico in MHV to Prodea (the MHV Transaction). The total consideration payable to Ascetico for the MHV Transaction is €254m in cash (the MHV Consideration). Prodea’s obligation to pay the MHV Consideration is secured by a pledge over Prodea’s total shareholding in MHV (representing c. 80% of MHV).

MHV financial position as of 30 June 2023 as well as the historical financial reports are available on MHV website (https://mhvgroup.com/), the notice said.

(b) The acquisition by Ascetico of shares in Prodea from Invel Real Estate BV, a private company incorporated in Netherlands and registered with the Dutch Trade Register of the Chamber of Commerce under number 74406043 (Invel).

Ascetico acquired from Invel 13.333.333 ordinary shares in Prodea, representing approximately 5.2% of Prodea’s issued share capital (the Prodea Shares). The total consideration for the Prodea Shares is €68m paid in cash, reflecting a price per share of €5.10.

As of 30 June 2023, the total assets of Prodea on a consolidated basis amounted to c. €3.0bn, its total liabilities to c. €1.4bn and its total equity to c. €1.6bn, YODA's announcement to the CSE concluded.