N+1 Mercapital avoids write-off with Hoteles Tecnológicos sale

The GP has divested the stakes held by its listed private equity fund Dinamia and closed-ended fund PEF I.

The sale generated proceeds of €642,000, which sees the GP recoup nearly all its original €650,000 investment in the hotel. The asset had been written off earlier this year.

In 2003, N+1 and Dinamia injected €23m into High Tech Hoteles, according to unquote" data. In 2005, both funds completed a secondary round of funding of €1.5m for the firm. The following year, both vehicles committed a further €2m, taking total investment in the hotel chain to €29.5m. Each vehicle holds 26% of the firm.

The GP explored the flotation of 60% of its shareholding in the firm in 2007.

Of the capital increase carried out in 2007, €11.6m was recovered through the redemption of preference shares.

In 2010, the shareholders in High Tech Hoteles agreed to incorporate Hoteles Tecnológicos into the chain in an investment project that envisaged the development of five new hotels. In order to maintain the structure of the original investment in High Tech Hoteles, Dinamia contributed €650,000 in equity and €231,507 in debt.

Company
High Tech Hoteles is a hotel chain focused on the 3-star and higher segment. It has 47 hotels in Madrid and other regional capitals in Spain. The company reported sales of €51m in 2012 and EBITDA of €6.7m. Net debt stood at €73m.

People
Ignacio Moreno is managing partner of N+1 Mercapital.

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