"We are pleased to have signed an agreement to sell InterContinental Montreal, which we have owned since 2007 and have developed in stages since then. The timing is right, the sale price is attractive, and the buyer has a strong local presence in Montreal. With the sale, we prove that Pandox's value creation model works well in all our markets. The divestment realises value and frees up capital for continued expansion in our main markets", says Liia Nõu, CEO of Pandox.
The total transaction value amounts to approximately MCAD 80, corresponding to approximately MSEK 660. The InterContinental Montreal has 357 rooms and is operated under a management agreement. In 2019, the hotel, which is reported in the business segment Operator Activities, had revenues of approximately MCAD 30 and a net operating income of approximately MCAD 5.
The transaction is made in form of divestment of assets and liabilities and is expected to be finalised in the first quarter of 2023, following a customary due diligence process, according to Canadian practice, where the buyer pays a deposit that is forfeited if the transaction is not completed. The buyer is a well-established real estate investor and developer with operations in eastern Canada.