Eagle Hills’ Acquisition of Sunce Hoteli
Šavorić & Partners advised Eagle Hills Zagreb Real Estate, part of UAE-based real estate developer Eagle Hills, on its acquisition of Sunce Hoteli in a deal projected to be worth HRK 760 million (approx. EUR 101 million).
Eagle Hills Zagreb Real Estate acquired 4.1 million stocks, representing 69.7% of the share capital of Sunce Hoteli, which is listed on the Zagreb Stock Exchange. Sunce Hoteli acts under the brand Bluesun Hotels & Resorts and manages 11 hotels and one campsite along the Croatian Adriatic coast in addition to other tourism assets. The total accommodation capacity of its venues comes to 2,973, making it one of the largest hotel companies in Croatia. The company also owns 50.2% of the airport on the island of Brač.
The Šavorić & Partners team was led by senior partner Boris Šavorić and partner Lovro Gašparac.
Lawyer Monthly had the pleasure to speak with Boris Šavorić, Senior Partner at Šavorić & Partners to give us some further insight into this transaction:
Can you tell us more about your team’s involvement in the transaction?
Our firm worked on this deal as the buyers’ counsel. In addition to taking the lead with respect to all Croatian law matters related to the transaction, we provided the buyers as well as the target’s team with support in all stages of the transaction and coordinated a number of preparatory activities to set up the required structure prior to the transaction, leading up to successful completion.
Did you encounter any challenges during the transaction? If so, how did you overcome them?
The timeline was one of the main challenges in the transaction, since it was driven by the disclosure requirements, so we had very little flexibility on the timing side. Considering that the transaction included several simultaneous work streams, all team members needed to work hard to make everything happen within the planned timeline. Everyone was focused to get the deal across the line as swiftly as possible and was always ready to go the extra mile to make sure that we put in place a structure which would allow all parties in the transaction to achieve their main objectives.
I would say that the entire transaction in general went rather smoothly, especially when it mattered the most: around signing and closing.
What impact do you expect the deal to have on tourism in Croatia?
Eagle Hills’ acquisition of Bluesun Hotels and Resorts will boost Croatian tourism, reinforcing its position as an unparalleled destination. Not only does this transaction aim to deliver world-class tourism to Croatia, but also to generate employment opportunities locally. This will not only occur through investments in Bluesun’s properties, but also by supporting the regeneration of surrounding areas. Local businesses will benefit immensely from the rejuvenation of Bluesun’s existing properties, which are set to impact dramatically on the local economy. Eagle Hills’ expertise in real estate development and hospitality will contribute immensely towards its impending enhancement efforts and qualitative upgrades that are slated for Bluesun’s properties.
