Value in Crete
​Minoan Group is engaged in the holiday/leisure business. It has a long standing project for a luxury leisure/holiday complex in Cavo Sidero in Eastern Crete, and also operates in the UK travel agency sector.
The Presidential Decree ('PD') authorising Minoan's major development in Crete outshines the group results for 2014/15 just published. The results themselves are satisfactory, if not exciting - but the Greek decision turns attention back to the company as an asset play of significant potential value.
The PD is the first approval for a major foreign leisure development in Greece for the past 30 years. It opens the way to a 2,000 bed luxury hotel and residential project in the spectacular North-East corner of Crete, and will be a 'trophy asset' in the making.
On activation of the contract with the Toplou Monastery Foundation ('the Foundation') Minoan will have a number of options open to it to realise value. The most likely of which we believe would be a partnership deal with a leading international operator, combined with investment from other sources: Middle Eastern and, more recently, Asian financial institutions have been persistent investors in high end hotel and leisure assets, and some very high prices have been realised.
Valuation is difficult at this stage, but we have calculated a range of possible values, which translate into the following target prices for Minoan shares: Short term 21p / Medium term 41p / Long term 61p.
Minoan Group is a holding and management company of a group involved in the design, creation, development and management of hotels and resorts and in the operation of independent travel businesses, through which the group acts as agent in providing a range of services including, inter alia, transportation, hotel and other accommodation and leisure services. Co. is organized into three divisions both by business segment and geographical location: the luxury resorts division, being the development of a resort in Crete; the Travel and Leisure division (U.K.), being the operation and management of the travel businesses; and the corporate development division (U.K.).
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