Eurobank SA and Piraeus Bank SA successfully completed the sale of their loan exposures to G. Kypriotis & Sons SA in funds managed by HIG Capital. AXIA Ventures Group acted as the Exclusive Financial Advisor of the Banks in relation to the transaction.
Eurobank and Piraeus Bank instructed AXIA to act as an exclusive financial advisor in relation to the identification of a potential investor for the acquisition of their loan exposures to the Company. AXIA has developed and implemented a two-stage competitive process and approached several institutional investors with a strong track record in similar transactions.
The total amount of the Bank’s loan exposures amounted to almost € 135 million with collateral on the hotel properties. The company owns and operates a complex of 3 four-star and 2 five-star hotel units on the island of Kos, with a total capacity of over 1,500 keys.
Despite the outbreak of Covid which caused significant upheaval in the tourism and leisure sector worldwide as well as the rejection of the application of the Banks for special management of the Company by the competent courts, the sale process was successfully completed with the selection of HIG Capital by the Banks as preferred investor.
Through this sale process, the Banks managed to successfully sell one of the largest non-performing loans they have in the Greek tourism sector, while making high recoveries.
Mr. Alexandros Argyros, Managing Director & Head of Investment Banking of AXIA Ventures Group said: “I am very proud of our team and our ability to offer an excellent result to our customers. This was a very difficult case, as not only coincided with Covid, but also because it was a situation with a lot of adversity both in terms of the industry and its assets and stakeholders.Our real estate & hospitality team managed to navigate all of them successfully challenges and complete the transaction “.
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Source From: Capital
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