Dubai-based holding company Five Holdings has closed the purchase of Grupo Pacha's hotel and nightclub division in Ibiza for a total of 320 million euros, according to El Diario de Ibiza.
The private equity fund Trilantic Capital Partners acquired Grupo Pacha in 2017 and decided to put it up for sale at the end of last year, with the aim of finding a partner to finance international expansion. With the deal, Five Holdings becomes a majority shareholder in Grupo Pacha alongside Trilantic Capital Partners.
The fund maintains ownership of the Lío cabarets, with a presence in the marina Marina Ibiza, Mallorca, Mikonos (Greece) and London (UK) and with the prospect of reaching Miami and Las Vegas (USA) and Dubai in the short term. Precisely, the Five Luxe hotel complex, owned by Five Holdings, will host the Lío venue in the country.
Founded as Skai Holdings in 2011 by Indian-origin entrepreneur Kabir Mulchandani and renamed Five Holdings in 2017, the Dubai group focuses its business on real estate development and a hospitality division. Its assets include the Five Palm Jueirah and Jumeirah Village hotels in Dubai, and the Five Zurich in the Swiss city, which was its first international investment after buying the asset in 2020.
Five Holdings' deal confirms the strong interest of Middle Eastern capital in the Spanish hotel and leisure segment. Earlier this month, the Saudi investment group The Olayan Group acquired the Mandarin Oriental hotel in Barcelona.
The amount of the transaction was not disclosed, but Reig Capital, owner of the establishment, and Farallon, owner of Reig's debt, had set a sales target of around 220 million euros when they initiated the sale process last March.
On the other hand, at the end of June, the Abu Dhabi sovereign wealth fund closed the purchase of seventeen hotels owned by the Equity Inmuebles fund. The transaction was worth more than 600 million euros. The acquired portfolio consists of seventeen hotels, although the most prominent asset is the ME Madrid Reina Victoria hotel, located in the heart of Madrid.
In addition, there are also five other Meliá branded hotels in Madrid, Marbella (Málaga), A Coruña, Chiclana de la Frontera (Cádiz) and Baqueira Beret (Lleida). Finally, there are eight Tryp brand hotels (two of them on Madrid's Gran Vía and three Sol brand establishments).