Statement sets out catalysts for potential rerating

Minoan’s statement for the year to end October 2021 sets out the status of its Cavo Sidero project in Crete, and details of the progress made during the period (and post the year-end) to bring the development towards implementation.

The project is a luxury hotel and villa development that will house four luxury five-star hotels and villa complexes. Minoan commissioned new studies for the detailed environmental assessment of the project and site during FY21. These underpin a revised masterplan which incorporates a new, more luxurious development that fully capitalises on the asset’s ‘Strategic Investment’ status.

The investment case pivots on potential for Minoan to secure (a) an amended agreement with the Foundation in 2022 and (b) development partners to undertake or partner / purchase discrete components of the scheme’s hotels or villas, typical for this type of development.

The current business plans forecast, once the resort becomes fully operational, a stabilised turnover for hotel & villa rental rooms above €100m pa which excludes real estate profits. Catalysts for rerating, short term, will be provided by firm evidence that MIN has navigated key challenges and made the development a reality. In the immediate term, any revised agreement with the Foundation should prompt a reappraisal of the group’s investment appeal.