Published
Fri, Jul 14, 2023, 11:30
- The running of the nightlife conglomerate will be split between FIVE Holdings and existing owners Trilantic Capital Partners.
Dubai-based company
FIVE Holdings has acquired a €320 million stake in Pacha Group, Diario De Ibiza reports.
Kabir Mulchandani, CEO of FIVE Holdings, struck the deal with the nightlife conglomerate's existing owners, Trilantic Capital Partners. Pacha Group will now be divided between the two companies, with
FIVE Holdings managing the hotels and nightclubs, including flagship Ibiza venues Pacha and Destino, as well as spots in Mykonos, Barcelona and Munich.
This leaves Trilantic with the upmarket club brand Lío, renowned for its cabaret shows and fine dining. According to Diario De Ibiza, the plan is to open branches in Miami, Las Vegas and Dubai, where it will sit within the Five Luxe Hotel, owned by FIVE Holdings. Lío is currently in Ibiza, Mallorca, Mykonos and London.
"Yes, we can confirm that this operation has taken place," a source close to Trilantic told Resident Advisor. "However, the company won't go into figures or make comments about the deal, as it hasn't done so at any time since the process of finding a new partner began. In the future, Pacha Group will continue to be one of the world's leading lifestyle and music brands."
FIVE Holdings has invested in a profitable brand. According to Bloomberg, Pacha Group's umbrella company, Universo Pachá SA, closed its most successful season last year with a 40 percent rise in revenue on pre-pandemic figures. The deal will also allow Pacha Group to repay its €18 million loan from the Spanish government, handed out during the pandemic.
FIVE Holdings is a Dubai-based real estate and hospitality group. It originally launched under the name SKAI Holdings in 2011 before rebranding in 2017. Trilantic acquired Pacha Group for €350 million, also in 2017.
Resident Advisor approached FIVE Holdings for this article but a spokesperson said the company declines to comment at this stage.
We'll report more on this story as it unfolds.