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land Market News: Spanish Real Estate Intelligence

Marathon & Colliers Team Up to Finance €200M of Land Purchases in Spain

25 April 2018 - Expansión

MCAP, one of the funds managed by Marathon, is going to offer financing to property developers and cooperatives for the acquisition of finalist land amounting to €200 million.

The current objective of many international investment funds is to take advantage of the strong performance of the house buying market in Spain at the moment, either through the launch of their own property developers or by forming alliances with third parties.

The latest to join the bandwagon is the US manager Marathon Asset Management. The firm has announced that it is going to allocate €200 million to finance the purchase of finalist land in the Spanish market through its London-based subsidiary.

The resources, which come from funds managed by MCAP Global Finance UK, will be shared between property developers and cooperative managers in search of alternative financing and bridge loans for their projects.

The objective is to finance up to 75% of the land value (LTV) depending on the commercial viability of each project, explained sources at Colliers Internacional, Marathon’s partner in this plan. “We expect to close financing agreements amounting to more than €100 million over the next six months”, said Mikel Echavarren, CEO of Colliers International.

The team at Colliers plans to close the first agreements with cooperatives and property developers that are carrying out projects located in Madrid, Málaga, Valencia and Sevilla over the next few weeks. The minimum investment volumes will amount to between €2 million and €3 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

 
Sareb's Puts Sanahuja Family's Land up for Auction to Recover the €13M Debt it Owes

20 April 2018 - Eje Prime

A new setback for the Sanahuja family. The Company for the Management of Assets proceeding from the Restructuring of the Banking System (Sareb) has decided to foreclose six plots of land in Madrid owned by the Catalan family by means of a judicial auction with the aim of recovering the €13 million owed to it by the clan.

Five of the plots are located in Vicálvaro and the other one is in Getafe. For the latter, Sareb has set a starting price of €12.7 million, whilst for the plots in Vicálvaro, the bad bank is asking for between €2.5 million and €5.7 million, depending on the plot for sale, according to El Confidencial.

The Sanahuja family were the kings of the Spanish property sector during the era of the real estate bubble, above all, after climbing to the Presidency of Metrovacesa, the listed property developer of which they became the majority shareholders. Afterwards, Román Sanahuja (pictured above), the patriarch of the family, led the company to bankruptcy.

Now, the clan has accumulated a debt of €44 million with the Tax Authorities, according to the most recent list of large debtors published by the public ministry led by Cristóbal Montoro.

The assets auctioned are owned by the companies Parque Residencial Vicálvaro and Sanahuja Escofet Inmobiliaria, both of which are, in turn, owned by Román Sanahuja, his wife, Ana María Escofet Brado, and their two sons, Juan Manuel and Javier.

Similarly, the string of bad news has not stopped for the family in recent times. A few months ago, Javier Sanahuja was evicted from the home that he lived in in the exclusive Barcelona neighbourhood of Sarrià. In Madrid, the patriarch of the clan, Ramón, founder of Sacresa, the seed of the Sanahuja family’s real estate empire, lost the Saldaña Palace, located on Calle Ortega y Gasset. Oddly enough, that prime property was purchased by the Catalan businessman from Juan Antonio Roca, one of the brains behind the Malaya corruption case.

Original story: Eje Prime

Translation: Carmel Drake

 
Town Hall of Madrid Criticised for Selling Plot Reportedly Worth €48M for €16M

18 April 2018 - La Vanguardia

The PSOE has denounced the Government of Manuela Carmena for breaching the agreed budget for 2017 and “the most basic municipal obligation” with its sale of a plot in Carabanchel for €16 million. It alleges that the sale was a “total waste”, given that the site was reportedly worth €48 million, up to three times more.

The socialist councillor, Mercedes González, condemned the delegate for Sustainable Urban Development (DUS), José Manuel Calvo, for the sale of the plot measuring 38,140 m2, which had belonged to the EMT, for a “modicum sum” in an auction in which the property developer Pryconsa participated on its own.

The plot is located on Avenida de Carabanchel, 21, in the district of Carabanchel, in a privileged location in the opinion of the PSOE – the investiture partner of Ahora Madrid – where a significant number of social housing properties could have been built.

The socialist spokesperson on the committee denounced that the plot had been sold with the knowledge and consent of the delegate, whose team also supported the “enormous" growth of the buildability from 2,600 m2 to 27,000 m2 (…).

The plot was sold for €427/m2, or €16 million in total, even though, according to the IBI (Property Tax) charge, the cadastral value of the site is €48 million (…).

In the face of these complaints, the councillor José Manuel Calvo defended that he had not intervened in the process or the sale decision (…).

The deal between PSOE and Ahora Madrid for the 2017 budgets established that the Town Hall would not sell any of its land or properties.

Original story: La Vanguardia

Translation: Carmel Drake