Blas Herrero Bids for One of Foxa Hotels in Madrid

In an order issued recently by judge Javier Yanez Evangelista of the Commercial Court number 9 in Madrid, a day and hour has been set for the auction of one of Foxa chain hotels in Madrid. It opens on Monday at 10 am with the initial price of 20 million Euros.

Businessman Blas Herrero, the owner of Kiss FM, will bid for the property with 5 other offers which have already locked their 4.6 millions needed to participate. (…)

Grupo Trome, the company owning Foxa hotels – 4 of them in Madrid (Foxa M30, Foxa 32, Foxa 25, Foxa Tres Cantos, all of them 4-star), one in Valladolid (also 4 stars), and two rural ones, Balneario de Carabaña and Molino de Cantarranas, both in the Community of Madrid – entered the arrangement in January 2012. On May 21st the judge confirmed the liquidation plan and a month later the hotel doors closed.

Grupo Trome agreed upon refinincing its debt of more than 162 million Euros in 2009 with 13 financial institutions, converting entire debt into the mortgage-backed debt, according to the Mercantile Registry. The company was bound by the contract to sell the assets with the thirty-month operating reserve of 150 million Euros. The main creditors are Santander, Caixa and BBVA.

Six Offers

On December 10th the company received offers for the Foxa Hotel from such firms as: Asterion International Investment with Ringkobing, Platinum Estates, Sularna SL, Desarrollos Portocervo and Abjasia Enterprise, apart from Blas Herrero. His offer is a cash deal.

(…) Blas Herrero presented his willingness to take part in the auction through the company HVB Casas. The businessman is an advisor of quoted real estate Renta Corporación, in the creditors´arrangement, he holds 9,8 %.

HVB Casas disposes of own funds of 18.5 million Euros. Last year the company set up in 1998 owed 6.6 millions to fellow firms. Blas Herrero controls 51% of Inmobiliaria Porceyo and 50% of Fuente Nozana, Argia Inversiones Inmobiliarias (47,8%), BVCR Títulos and Cornelia Diary Products, among others.

The judge authorised Popular and Caixa banks to conduct the alienation of the hotels.

Hotel Foxa of Valladolid and Batano Tres Cantos building will be allienated for 30.5 millions in support of Popular and the office building Foxa 25 in Madrid for 15.3 millions in favor of Buildingcenter, a real estate of Caixa (…).

Source: Cinco Días