287
287

Baraka Triggers the Immediate Suspension of the Building Work at Edificio España

23 November 2018 – El Economista

The magistrate of the Court of First Instance nº 67 of Madrid has ruled that the building work on Edificio España in Madrid be suspended immediately due to the risk alleged by Baraka before that legal body.

Baraka, the company owned by the businessman Trinitario Casanova, filed a lawsuit before the courts of Madrid in August requesting the suspension of the building work on the hotel in Edificio España, in Madrid, which is now owned by the hotel chain Riu. The hotel firm purchased the iconic building in Plaza España from Baraka last year.

Baraka is claiming in the courts that the commercial premises inside the building, spanning 15,000 m2, belong to it and that Riu is refusing to sign across the deeds.

The hotel group Riu indicates that it has not yet received any notification to suspend its building work, according to sources speaking to El Economista. The hotel chain clarifies that Baraka does not have any contract with purchase rights or to register on public record the commercial space in Edificio España. Indeed, they note that at the time of Riu’s purchase of the building, Baraka signed “a non-representative mandate contract to search for investors for the commercial area, which it has failed to do”, despite repeated requests from the hotel chain.

The firm points out that a sales agreement has been reached with Corpfin Capital Real Estate for the commercial area, which was signed in September and which is on the verge of being executed. Riu is threatening to sue Baraka for damages and losses if the building work at Edificio España is affected. The hotel chain is going to invest between €380 million and €400 million in the project, including the purchase of the building (around €272 million) and its renovation.

The future hotel will be a four-star property and will have 589 rooms, 15 meeting rooms and almost 3,000 m2 for social and corporate events. The inauguration of the hotel is planned for September 2019 and the property will operate under the brand Riu Plaza.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake