JLL advises on the sale of Kempinski Hotel Adriatic and Skiper Residences

The leading South East Europe real estate advisor JLL has advised HETA Asset Resolution on the sale of Kempinski Hotel Adriatic and Skiper Residences to MK Group. Situated in Savudrija Croatia, only 15 km away from Umag – Kempinski Hotel Adriatic and Skiper Residences represent one of the most sought out vacation destination in the westernmost point of Croatia spreading across the country side of Istria. Apart from the 186 keys which the Kempinski Hotel Adriatic offers, the complex further extends across 22 villas, more than 160 apartments and suits with complementary content such as restaurants, bars, spa centers, a unique conference center overlooking the Adriatic coast and a one of a kind 18 hole golf course in the region, and two private beaches directly accessible to guests staying with the complex. With the number of tourist arrivals growing year-on-year along with the significant upside value offered, the complex attracted a high level of investors looking to either enter or further expand their operations in the region and Croatia in particular.

JLL was the exclusive advisor to HETA which following its nationalization in 2009 is now a winddown company owned by the Republic of Austria which owns a EUR 9.913 billion portfolio as of December 2016. Its statutory task is to dispose of its assets as effectively as possible whilst preserving value. The new owner of the impressive complex is Istrian Hotels d.o.o. a member of the MK Group one of the leading firms operating in the agricultural, sugar, meat, trade, IT and tourism fields.

Uros Grujic - Head of Capital Markets JLL for SEE commented:

– Advising HETA Asset Resolution on one of the most important projects within their EUR 9 billion portfolio was a challenging yet exciting exercise as Croatia proved once again to be a highly sought out investment destination. With the tourism figures growing fueled by a double digit increase in overnight stays year-on-year, allowed us to gather a large amount of offers having this project become the most competitive process we have advised on up to date. Given the improving performance of the Kempinski Hotel Adriatic and the massive upside potential offered across the complex, the pool of institutional investors was deep. After advising on the disposal of numerous prime shopping centers and office buildings across the region, we were further able to expand our services in the hotel sector and achieve an impressive result for HETA in regards to the disposal of the Kempinski Hotel Adriatic further cementing our position as the leading investment advisor across the SEE region.

Andrew Peirson - Managing Director JLL for SEE stated:

– Both the client and JLL are extremely happy with the outcome of this sales process. Due to the specialist nature of the bank, and its clear directive of ensuring assets are sold for the best price possible, JLL’s role here was vital in order to both demonstrate a fair process for potential buyers whilst at the same time ensuring the client, and the Austrian state, got the best deal possible. Our network of international investors ensured that interest was high, with bids coming in from three continents, and is further proof that using international real estate advisors such as JLL helps to open up this region to the foreign investment all these markets need.