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Kronos Forces the Auction of Salvador Vila’s Star Plot in Valencia Worth €67M

20 February 2019 – Expansión

The court has approved the execution requested by the fund (Kronos), which purchased the debt associated with the plots on Avenida de las Cortes Valencianas, opposite the former Hilton hotel, from Sareb and is claiming €47 million from the Valencian property developer (Salvador Vila).

One of the last undeveloped plots on Avenida de las Cortes Valencianas has just gone to judicial auction. It is the plot of land located opposite the Hotel Meliá Valencia (formerly the Hilton), where the plan was to build a 114-metre tall tower containing homes. It was set to be a genuine icon but was never constructed because of the real estate crisis.

The land still belongs to one of the large Valencian property developers, Salvador Vila Soria, who also constructed several of the large towers located on the same avenue. Nevertheless, a change of hands appears imminent, given that the Court of First Instance number 27 of Valencia has approved the mortgage auction of the property at the request of Vistanova Developments, a company linked to the manager Kronos, which through Kronos Homes is one of the new large operators in the residential market.

Kronos acquired the debt that Salvador Vila held with Sareb and which included the mortgage secured by this land as collateral. In fact, the Managing Director of Kronos, Saïd Hejal, explained to Expansión in May his firm’s intention of starting construction on a 34-storey residential tower this year, which was going to be the tallest in Valencia, after taking over the debt from Sareb.

The legal auction officially started on 8 February and the period to submit bids ends at the beginning of March. According to the court, the debt claimed from Salvador Vila in the mortgage foreclosure lawsuit amounts to €47.62 million, of which €40 million proceeds from the principal and the rest from interest.

The value of the property for the auction is set at €67 million. The plot spans 6,926 m2 and has a buildability of 20,900 m2 (residential use) and another 3,100 m2 for tertiary use (…).

Original story: Expansión (by A.C.A.)

Translation: Carmel Drake