news

23 Jul 2015

Caixa Capital exits Vila Galé (€ 33 million by 10% stake)

A fund managed by Caixa Capital sold a stake in the Vila Galé Group to its current shareholders. The value of the deal was € 33.075 thousand by selling a 10% stake.

A fund managed by Caixa Capital sold a stake in the Vila Galé Group to its current shareholders. The value of the deal was € 33.075 thousand by selling a 10% stake. 

The initial equity investment of Caixa Capital in the Vila Galé Group was realized in mid-2009 under a shareholding reorganization process that led to the exit of a minority shareholder and allowed the equity control by the current management team. 

Since then Vila Galé Group opened 7 new hotels - Lagos, Coimbra, Cumbuco, Palácio dos Arcos (Oeiras), Rio de Janeiro, Évora and more recently Douro - representing a total investment of over € 100 million. Currently, Vila Galé Group is the second largest Portuguese hotel group with operations in Portugal and Brazil totalizing almost 12,000 beds in 27 hotels. 

In the same period, economic growth was also very positive – from 2008 to 2014 the turn-over increased from € 92 million to € 118 million and EBITDA from € 30 million to € 40 million. Also, this group continued to demonstrate a strong financial position by presenting at the end of 2014 a 55% ratio of Equity / Assets and very low level of net financial liabilities. 

José Carrilho, Caixa Capital’s CEO, stated that "the shareholder stability is a key strategic factor in ensuring sustainable growth. As a financial investor, Caixa Capital helped the company to create the conditions that allowed the Vila Galé Group to grow organically and to study new investment opportunities.” 

Finally, it should also be noted that the venture capital arm of the CGD Group will continue partnering Vila Galé Group, by investing in its subsidiary for the development of a new hotel in Évora (185 rooms, with opening last April). The total capex in this hotel amounted to € 15.3 million (financed by debt + equity), of which € 2 million were invested back in 2013 by a fund managed by Caixa Capital.