Gladstone Investment Corporation Expands its Investment in Nocturne Luxury Villas via an Acquisition of Grand Cayman Villas and Condos

Rhea-AI Summary

Gladstone Investment (NASDAQ:GAIN) has expanded its investment in Nocturne Luxury Villas through the acquisition of Grand Cayman Villas and Condos (GCVC). The company invested $18.5 million in secured first lien debt to complete the transaction. GCVC, founded in 2006, manages over 180 exclusive properties in Grand Cayman, ranging from luxury villas to one-bedroom condos. This marks Nocturne's seventh acquisition, bringing Gladstone's total investment in Nocturne to $88.2 million at cost. The acquisition aims to diversify Nocturne's destination experiences and enhance its offerings for high-end travelers, particularly along the prime 7 Mile Beach coastline.

Positive

• Expansion of investment portfolio with acquisition of Grand Cayman Villas and Condos
• Addition of 180+ exclusive properties to Nocturne Luxury Villas' offerings
• Diversification of Nocturne's destination experiences
• Increased presence in the luxury travel market, particularly in Grand Cayman

Negative

• Increased debt exposure with $18.5 million in secured first lien debt
• Potential integration challenges with new acquisition

News Market Reaction

-3.93%

1 alert

-3.93% News Effect

On the day this news was published, GAIN declined 3.93%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MCLEAN, VA / ACCESSWIRE / August 5, 2024 / Gladstone Investment Corporation (NASDAQ:GAIN) ("Gladstone Investment") announced today that it has increased its investment of debt support of its equity position in Nocturne Luxury Villas ("Nocturne"), an existing portfolio company, through its acquisition of Grand Cayman Villas and Condos ("GCVC"), a leading villa rental management company operating in Grand Cayman. Gladstone Investment invested $18.5 million of secured first lien debt to complete the transaction.

Founded in 2006 by Cayman property owner Jim Leavitt, GCVC manages and markets for rent more than 180 exclusive properties and condos in Grand Cayman. GCVC's villas and condos stretch from 7 Mile Beach to Rum Point, including the resort community of Cayman Kai. GCVC homes range from 11-bedroom private luxury villas to intimate one-bedroom condos and cottages, all professionally designed and serviced and offering guests a full range of amenities.

"We are thrilled to welcome Grand Cayman Villas and Condos to our portfolio of luxury villas and residences. This acquisition marks a significant milestone in our mission to diversify Nocturne's destination experiences. The premier locations in Grand Cayman enhance and elevate our offerings for discerning travelers, particularly in the sought-after stretch of prime coastline along 7 Mile Beach," said Scott Wiseman, CEO of Nocturne Luxury Villas.

"We are pleased to provide continuing support for the seventh acquisition of the Nocturne Luxury Villas platform," said Erika Highland, Senior Managing Director of Gladstone Investment. "This investment in GCVC complements Nocturne Luxury Villas' portfolio of iconic brands, including Exceptional Stays, WIMCO St. Barth Properties, CaboVillas.com, Exclusive 30A, and Paradise Retreats, bringing the aggregate of our total debt and equity investments at cost in Nocturne to $88.2 million."

Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market private businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Additional information can be found at www.gladstoneinvestment.com.

For Investor Relations inquiries related to any of the monthly distribution-paying Gladstone family of funds, please visit www.gladstone.com.

Forward-looking Statements:

The statements in this press release regarding the longer-term prospects of Gladstone Investment and Nocturne and its management team, and the ability of Gladstone Investment and Nocturne to be successful in the future are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current beliefs that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward looking statements whether as a result of new information, future events or otherwise, except as required by law.

For further information: Gladstone Investment Corporation, 703-287-5810

SOURCE: Gladstone Investment Corporation

View the original press release on accesswire.com

FAQ

What is the value of Gladstone Investment's (GAIN) recent investment in Nocturne Luxury Villas?

Gladstone Investment (GAIN) invested $18.5 million in secured first lien debt to support Nocturne Luxury Villas' acquisition of Grand Cayman Villas and Condos.

How many properties does Grand Cayman Villas and Condos manage?

Grand Cayman Villas and Condos manages and markets for rent more than 180 exclusive properties and condos in Grand Cayman.

What is Gladstone Investment's (GAIN) total investment in Nocturne Luxury Villas after this acquisition?

After the acquisition of Grand Cayman Villas and Condos, Gladstone Investment's (GAIN) total debt and equity investments at cost in Nocturne Luxury Villas amount to $88.2 million.

How many acquisitions has Nocturne Luxury Villas made with Gladstone Investment's (GAIN) support?

The acquisition of Grand Cayman Villas and Condos marks the seventh acquisition for the Nocturne Luxury Villas platform with Gladstone Investment's (GAIN) support.