Fattal Holdings, controlled by David Fattal, yesterday signed a deal to acquire 18 hotels in Europe belonging to the hotel fund in which he is a partner. The deal reflects a €200 million value for the properties.
This hotel fund, founded by Fattal in 2007, consists of the Tshuva group (21%), Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) (20%), Menorah Mivtachim Holdings Ltd. (TASE: MORA) (6%), Amitim (10%), Liberty Properties (11%), and the Fattal group (32%).
The fund, founded just before the outbreak of the 2007 European economic crisis, was designed to acquire four-star municipal and business hotels in Europe. The fund's hotels include 12 hotels in Germany, one in Switzerland, and five in Belgium.
Investments by the partners in the fund totaled €89 million in 2007-2009, and the return for the partners has totaled €54 million to date.
A year ago, Fattal bought the Leonardo Royal Hotel in Munich, Germany from the fund for €95 million, giving the partners in the fund a 110% return on that hotel.
The current sale of hotels to Fattal Holdings will give the partners a €124 million return, amounting to 37%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2015
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