Construction Five Holdings plans ultra-luxury Pacha Ibiza residences By Andy Sambidge January 31, 2024, 4:26 PM Five Holdings Pacha has been central to Ibiza's club scene since the 1970s Five announces $57m Pacha plans Previously held leasing rights $350m green bond last year Dubai developer Five Holdings plans to build ultra-luxury residences in Ibiza following the completion of a $57 million hotel and land deal. The UAE real estate and hospitality group has acquired El Hotel Pacha and an adjacent land plot where it plans to build Pacha Residences, using the branding of the Balearic island’s most famous nightclub. Five Holdings previously had the leasing rights for El Hotel Pacha but the ownership move is part of its ambition to capitalise on premium investment opportunities, it said in a filing to Nasdaq Dubai. Deals surge as trade between Spain and UAE increases Dubai hotelier’s $350m green bond to fund Ibiza expansion Abu Dhabi fund buys share of hotel group in Spain The acquisition was financed through an equity contribution of $12.2 million from Five, deferred payment of $4.4 million and an external loan of $40.8 million. The Pacha brand has been a pioneer of Ibiza’s dance and cultural movement since 1973. Five, whose hotels include Five Palm Jumeirah, Five Luxe and its first international property, Five Zurich, said it expects to generate revenue of $570 million for 2023. Kabir Mulchandani, founder and chairman, said it was focused on expanding within current markets. In October, the company listed a $350 million green bond on Dubai’s Nasdaq to help fund acquisitions. In August, Coral Reef, a subsidiary of Abu Dhabi Investment Authority, and Melia Hotels International received approval to buy a portfolio of 17 hotels from Equity Inmuebles in Spain and the Canary Islands.
