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Millenium explains the reason for the loss of confidence and the departure of Illán

On January 24, Millenium Hospitality Real Estate announced changes in the presidency due to the “loss of confidence” of the Board of Directors regarding Javier Illan. Almost a month later, they have explained the reasons behind the departure of the then president of the SOCIMI.

In a statement sent to BME Growth, Millenium details that “the acceptance of the resignation of Don Javier Illán as President, CEO and member of the Board of Directors of the Company took place after not having communicated a situation of conflict of interest and not having abstained from the decision-making and execution of an operation affected by said conflict.”

Millennium Hospitality Real Estate maintains that the facts have become evident “as a consequence of the process of reviewing the activity by the Company’s internal audit. The Board of Directors decided to carry out an investigation in order to know what had happened and the damage that could have been caused for the Society before making this information public.”

The operation linked to the conflict of interest was the purchase, in November 2022, of a property in El Palmar, Vejer de la Frontera, for a price of 12 million euros. This acquisition was communicated to the market on November 29. It is a plot of land for hotel use on the beachfront, which was purchased for the development of a luxury eco-resortas published by HOSTELTUR.

More information

– Millenium buys a plot for a luxury eco-resort in Cádiz

Javier Illán’s departure was announced on November 24. Source: Hosteltur archive.

“Neither the Board of Directors, nor the Audit Committee nor the Real Estate Executive Committee were informed when approving the Operation, that an entity wholly owned by Mr. Illán and of which Mr. Illán was the sole director, called Grupo Millenium Investment Partners, SL (“GMIP”) held a mortgage loan on the property. Indeed, GMIP acquired for a price of three million euros, through a deed executed on October 28, 2020, a loan guaranteed by a mortgage on the El Palmar property, which was unpaid and in judicial execution proceedings.

The document signed by Juan Gómez-Acebo Sáenz de Heredia, Non-Director Secretary of the Board of Directors of Millenium, explains that on the same day of the operation, November 11, 2022, with the previous protocol number and before the same notary before whom The acquisition of the El Palmar property by MHRE was formalized, GMIP received 10 million euros as payment of the loan.

“Mr. Illán did not communicate the conflict to the Audit Commission, so this body could not proceed with the preparation of the relevant report on the Operation by this body, nor did he abstain from participating in the decision-making process. He also did not reflect it in the declaration of conflicts of interest for the year 2022 that he provided to the Company’s auditors,” he comments.

These facts have been communicated to the Company’s auditors and will be reflected in a timely manner in the annual accounts and in the Company’s report, “in compliance with the transparency regulations on related-party transactions,” concludes the letter sent to BME Growth.

After the departure of Javier Illan, the presidency of Millenium Hospitality Real Estate is occupied by Luis Basagoiti.

The REIT has 13 hotels and resorts, in seven destinations and that operate with eight different brands. The valuation of the assets exceeds 580 million euros.


Learn more about Millennium Hospitality Real Estate

– The 13 most voracious investment funds in the hotel industry in Spain

– Millenium Hospitality boosts revenue and EBITDA although it reduces profits

– Millenium Hospitality appoints new CFO

Source: Hosteltur

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