Namibia: PE fund invests in tourism asset
Eos Capital, the Namibian private equity firm, will acquire The Mushara Collection through its Allegrow Fund, pending approvals from the Namibian Competition Commission and a land waiver application with the Ministry of Lands and Resettlement.
Mushara is a tourism asset located near Etosha National Park. Mushara comprises of three main lodges, namely Mushara Lodge, Mushara Bush Camp and Mushara Outpost. The Mushara Villa is part of the Mushara Lodge and is the most exclusive offering at Mushara with only two exclusive villas available.
Tourism and its related activities are uniquely exposed to the Covid-19 pandemic and were among the hardest hit sectors in the Namibian economy in 2020 due to local and global travel restrictions. Whilst Mushara is no exception, Eos Capital believes it offers significant upside potential as tourism is expected to recover over the next three years. The asset will be sufficiently capitalised to sustain a resurgence or persistence of Covid-19 restrictions for another year.
“We are confident of a strong recovery of the Namibian tourism sector as we will be a preferred destination of choice for overseas tourists as the trend is shifting towards open and sparsely populated destinations. Eos is planning to expand and enhance Mushara’s excellent offerings, and we are excited to work with the highly competent team on the ground to take the asset to new heights,” says Ekkehard Friedrich, the partner in charge of the transaction at Eos.
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