Acquisition of Sunce Hoteli by Eagle Hills
Å avoriÄ & 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 valued at HRK 760 million (approx. 101 million euros).
Eagle Hills Zagreb Real Estate has acquired 4.1 million shares, representing 69.7% of the share capital of Sunce Hoteli, which is listed on the Zagreb Stock Exchange. Sunce Hoteli operates under the Bluesun Hotels & Resorts brand and operates 11 hotels and a campsite along the Croatian Adriatic coast in addition to other tourism assets. The total accommodation capacity of its sites is 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 BraÄ.
The Å avoriÄ & Partners team was led by the senior partner Boris Å avoriÄ and the partner Lovro GaÅ¡parac.
Lawyer Monthly had the pleasure of speaking with Boris Å avoriÄ, Senior Partner at Å avoriÄ & Partners to give us a more detailed overview of this transaction:
Can you tell us more about your team’s involvement in the transaction?
Our firm worked on this matter as an advisor to the buyers. In addition to taking the lead in all matters of Croatian law related to the transaction, we provided the buyers as well as the target team with support at all stages of the transaction and coordinated a number of activities. preparations to put in place the required structure before the transaction, leading to success.
Did you encounter any difficulties during the transaction? If so, how did you overcome them?
The timing was one of the main challenges of the deal, as it was determined by the disclosure requirements, so we had very little flexibility on the timing side. Since the deal included multiple concurrent workflows, everyone on the team had to work hard to get everything going on schedule. Everyone was focused on closing the deal as quickly as possible and were always ready to go the extra mile to ensure that we put in place a structure that would allow all parties to the transaction to meet their primary goals.
I would say that the whole deal in general went pretty well, especially when it mattered most: around signing and closing.
What impact do you think the agreement will have on tourism in Croatia?
Eagle Hills’ acquisition of Bluesun Hotels and Resorts will boost Croatian tourism, strengthening its position as an unprecedented destination. This transaction aims not only to offer world-class tourism in Croatia, but also to generate employment opportunities locally. This will happen not only through investments in Bluesun properties, but also by supporting the regeneration of surrounding areas. Local businesses will benefit immensely from the rejuvenation of existing Bluesun properties, which are expected to have a huge impact on the local economy. Eagle Hills’ property development and hospitality expertise will contribute immensely to its impending improvement efforts and planned quality improvements for Bluesun properties.