GlobalWealth signs €2.5m investment agreement for Corfu hotel development

Barbati, Greece. Cyprus-based GlobalWealth Group PLC has approved and signed an investment agreement to acquire interests in a €2.5 million hotel development in Barbati, Corfu. The investment forms part of the company’s strategy to expand its luxury tourism property portfolio in Greece.

Investment structure

The Cyprus Stock Exchange-listed company said the agreement concerns the Aspro Spiti Barbati Corfu project and supports its wider plan to build a portfolio of high-yield properties in Greece’s luxury tourism sector.

GlobalWealth said the investment is intended to strengthen the value of its assets and generate stable future cash flows.

The agreement involves Alexander Corfu S.A. as contractor and founder of the implementation entity, GlobalWealth Group as investor, Alpha Alexander S.A. as project financier, and Alexander S.A. Holding Commercial and Provision of Services S.A. as hotel manager.

Property acquisitions

Under the agreement, GlobalWealth will gradually acquire full ownership of 32 hotel unit properties from the 99 units in the wider Aspro Spiti project, which has a total capacity of 220 beds.

The 32 units will be acquired through two special purpose vehicles established in Greece.

GlobalWealth will also gradually acquire a 49 per cent equity stake in Alexander Corfu 2, a subsidiary of Alexander Corfu S.A.

Funding and fund plans

The total consideration for the investment has been set at €2.5 million, payable in five instalments of €500,000 each.

Part of the investment is intended to serve as seed capital before potentially becoming part of the portfolio of the Global Private Equity Real Estate Fund, which is to be managed by GlobalWealth subsidiary GMM Global Money Managers AIFM Ltd.

Any future transfer or contribution of assets to collective investment undertakings managed by GMM Global Money Managers AIFM will be subject to an independent valuation and a fairness opinion, in line with the Alternative Investment Fund Managers Directive and the company’s internal procedures for managing conflicts of interest.