FOR IMMEDIATE RELEASE
Business Updates and Estimated Proforma Revenue and
EBITDA
Dubai, UAE - 30 January 2024
Recent Business Updates
FIVE Holdings completes successful acquisition of Chioro ITG,
SLU
FIVE Holdings (BVI) Limited ("FIVE
Holdings") is pleased to announce the successful completion of the
acquisition of Chioro ITG, SLU ("Chioro"), including the attainment
of ownership rights over the real estate of El Hotel Pacha and its
adjacent land plot.
FIVE Holdings, which already has the
leasing rights for El Hotel Pacha, has now acquired Chioro for an
adjusted final enterprise value of EUR 52.75 million, securing
ownership of El Hotel Pacha and its adjacent land plot. This
strategic move reinforces FIVE Holdings' commitment to diversifying
its real estate portfolio and capitalising on premium investment
opportunities. The acquisition was financed through an equity
contribution of EUR 11.25 million from FIVE Holdings, deferred
payment of EUR 4 million and an external loan of EUR 37.5
million.
One of the highlights of this
acquisition is the development plan for the land adjacent to El
Hotel Pacha. FIVE Holdings envisions creating Pacha Residences, a
new ultra-luxury development featuring branded residential
apartments.
The decision to expand into branded
residential apartments is a testament to FIVE Holdings' enduring
commitment to delivering unparalleled luxury and exceptional
experiences to a global community of discerning travelers looking
for an incomparable Ibizan experience.
Pacha Residences will set the Gold
Standard for luxe living, music, culture and unforgettable memories
amidst the iconic surroundings of Pacha Ibiza and El Hotel
Pacha.
Estimated Proforma Revenue and EBITDA
(unaudited)
Based on a preliminary outlook, FIVE
Holdings foresees the Group's estimated proforma revenue to be AED
2.09 billion (USD 570 million) and proforma EBITDA to be AED 770
million (USD 210 million) for the full year of 2023[1]. FIVE Holdings plans to release its audited
consolidated financial results for the full year of 2023 in April
2024. It is worthwhile to note that FIVE Holdings repaid USD 115
million of its revolving credit facility in three months (Oct-Dec
2023), as a result of which the principal amount of this facility
as of December 31, 2023 reduced to USD 70 million. Additionally,
FIVE Holdings repaid USD 14.25 million of its Swiss facility
bringing the principal amount of this facility down to USD 51
million as of December 31, 2023. Concurrently, FIVE Holdings
repurchased its green bonds amounting to approximately USD 8
million in face value from the open market demonstrating strategic
deleveraging across the board. The preliminary proforma figures
presented in this press release are being provided prior to the
completion of the audit procedures by the Group's auditors, hence
they are subject, and susceptible, to adjustment.
Commenting on the preliminary
projections, Kabir Mulchandani, Founder and Chairman, of FIVE
Holdings, stated, "I am pleased with the Group's accomplishments in
2023 and excited to achieve further significant milestones in 2024.
We continue to remain focused on expanding within our current
markets, and successfully implementing our development and
hospitality initiatives, all while achieving a robust performance
and consistently demonstrating operational discipline."
For investor related inquiries,
please contact investor.relations@fiveglobalholdings.com.
For media inquiries, please contact
Farah Palia at farah.palia@fiveglobalholdings.com.
Forward Looking Statements
This press release contains
"forward-looking statements" based on FIVE Holdings current
expectations, forecasts, and beliefs, which includes, among other
things, the statements related to Pacha Residences, estimated
unaudited proforma revenue and proforma EBITDA for full-year 2023,
business development, financial guidance, commercial strategy,
execution, expansion, operational performance, and growth. The
projections set forth in this press release reflect FIVE Holdings'
current preliminary projections, are subject to the completion of
FIVE Holdings audit process and are subject to change. FIVE
Holdings' revenue and EBITDA results for full-year 2023 could
differ materially from the preliminary projections provided in this
press release. These forward-looking statements are subject to
inherent uncertainties, risks, and assumptions that are difficult
to predict. Actual outcomes and results could differ materially due
to a number of factors, including the risks and uncertainties
described more fully in the section titled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" contained within the offering circular dated
October 3, 2023, published in respect of the recent bond offering
of FIVE Holdings. Forward-looking statements contained in this
announcement are based on information available to FIVE Holdings as
of the date hereof. FIVE Holdings undertakes no obligation to
update such information except as required under applicable law.
Factors that could cause FIVE Holdings' actual results to vary from
the preliminary projections noted in this press release include
variances between FIVE Holdings' proforma revenue and proforma
EBITDA projections and its actual results. These forward-looking
statements should not be relied upon as representing FIVE Holdings'
views as of any date subsequent to the date of this press release
and should not be relied upon as a prediction of future events. In
light of the foregoing, investors are urged not to rely on any
forward-looking statement in reaching any conclusion or making any
investment decision regarding any securities of FIVE
Holdings.
FIVE Holdings does not, as a matter
of course, publicly disclose estimated unaudited proforma revenue
and proforma EBITDA, whether on an annual or quarterly basis, due
to the unpredictability of the underlying assumptions and
estimates. FIVE Holdings' announcement of estimated unaudited
proforma revenue and proforma EBITDA information in this press
release should not be regarded as an indication that FIVE Holdings
considered, or now considers, estimated unaudited revenue and
EBITDA information to be material or to be a reliable prediction of
actual future results, and the estimated unaudited proforma revenue
and proforma EBITDA information set forth in this press release
should not be relied upon as such. Readers should not expect FIVE
Holdings to make similar disclosures of estimated unaudited revenue
and EBITDA information in the future.
FIVE Holdings cautions that the
estimated unaudited proforma revenue and proforma EBITDA
information set forth in this press release is subject to
adjustment and based upon subjective decisions and assumptions.
Accordingly, there can be no assurance that the results reflected
in the estimated unaudited proforma revenue and proforma EBITDA
information will be realized, and actual results may differ
materially from those reflected in such projected information. As a
result, the estimated unaudited proforma revenue and proforma
EBITDA information should not be relied on as necessarily
predictive of FIVE Holdings' actual results.