Amir Dayan’s Vivion Valued at 2.5B Euros.
According to the Israeli newspaper Calcalist, Amir Dayan is in advanced negotiations with a group of British investors to issue a private placement in the real estate company Vivion to the amount of 375 million euros, which will grant them a 15% holding. In the future, they will be able to invest another 150 million euros and increase their share to 25%.
The Dayan family is one of the richest families in Israel and its business arms extend to many areas of activity. However, because family members do not operate in the public arena, the scope of their business is not publicly exposed. Now, due to contacts conducted by Amir Dayan, the dominant figure in the family, the value of a significant share of these businesses is revealed.
According to the report, it has been understood that Amir Dayan is in advanced discussions to issue private shares in the real estate company Vivion, which he founded in 2018 and operates in Europe, which gives it a value of 2.5 billion euros.
This is an issue of shares to a group of investors that includes funds, money management companies and family offices, which is being formed by a British investment company with most of the investors being British.
The group is expected to invest 375 million euros in Vivion in the first phase, thus acquiring 15% of the company’s shares. In the future, the group will be able to invest an additional 150 million euros and increase its holding to 25%. Since this is a share offering, the money will flow into the company’s accounts. According to a source in the British investment company, the contacts are in the final stages.
As mentioned, Vivion is a private company, but it has issued bonds that are traded on the pan-European Euronext stock exchange, so it reports its financial results. Vivion has two series of bonds, one of 700 million euros, with a final repayment date of 2024, and one of 640 million euros, with a final repayment date of 2025.
The company that Amir Dayan founded and which he and his brother Itzik Dayan have significant holdings in, currently owns 54 hotels in the UK (26 of them in London), most of which are leased to large chains such as Hilton. The company also owns 35 income-producing properties in Germany, mainly office buildings and properties leased for commercial use. The total value of its portfolio stands at 3.6 billion euros. In terms of value, hotels account for 63% of the portfolio (€ 2.1 billion) and offices for 35% (almost € 1.5 billion).
2021 was a record year for Vivion. The average occupancy rate of its assets rose from 93% to 95%. Among other things, during this year Vivion leased one of its most notable assets, located in Düsseldorf, to the German government on a long-term ten-year contract for 9 million euros a year.
This deal, along with other contracts it has signed that include protection mechanisms against inflation and an increase in interest rates, has led to an increase in the company’s revenue. Vivion concluded the past year with € 199.6 million in rental income, an increase of 6.7% compared to this figure in 2020, a year that was challenging due to the Covid-19 pandemic, which stood at € 187.1 million.
Vivion, which is registered in Luxembourg, has unencumbered assets worth 3.2 billion euros, and its debt volume is relatively low at 1.6 billion euros, so the debt-to-capital ratio stands at 35%. The value of the company’s net assets, including cash, stands at 5.3 billion euros.
Vivion has made several high-profile deals. In December 2019, it bought two hotels in London for £255 million from the firm that manages the capital of former Qatar Prime Minister Sheikh Hamed bin Jassim al-Thani. These are the Sanderson Hotel and the St. Martins Hotel, which the Sheikh bought in 2011 for £ 192 million. Earlier, in March of that year, the company acquired a portfolio of nine hotels leased to the global company Hilton for £ 246 million.
The Dayan family, led by brothers Miki Itzik and Amir Dayan, controls an international empire in the fields of real estate, hotels, automobiles, and other industries. The family immigrated to Israel from Iran and the 12 siblings, one of whom has since passed, grew up in a small apartment in the Hatikva neighborhood of Tel Aviv. In recent years, the family has become one of the richest in Israel.
In recent years, the Dayan family has increased the scope of its activities, it has been interested in buying Africa Israel from Lev Leviev’s creditors, but in the end, only bought Africa Israel hotels for about a billion Shekels.
