Court to Tender Land of Promalar Worth €60 Mn

31/10/2014 – Faro de Vigo

As soon as in November, Vigo-based Pontevedra Mercantile Court number 3 will auction more than one hundred pieces of land belonging to real estate firm Promalar. Jointly valued at €59.3 million, the properties are located nearby the towns of Cangas, Bueu, Aldan and Beluso.

The tender, to take place on November 27th, is a result of asset liquidation closing the bankruptcy procedures of the company.

Specifically, the 103 land units, in majority situated in the mountains, will be grouped into seven portfolios. Also, large part of them is mortgage-free. The most expensive package asks €20 million, next €17.5 million, €10 million and €8.5 million. The cheapest may be acquired for €385.500.

In 2006, Promalar bought canning firm Bernardo Alfageme and five years later it went bankrupt with €185 million owed to Banco Popular and NCG (now Abanca).

The process took its toll in shape of other real estate assets of the firm. In November 2013, 20 property packages were auctioned for a total of €38 million. Banco Popular and Sareb (that received the loans from NCG) seized a €22 million worth of Promalar’s assets. For instance, Spain’s bad bank repossessed a historic building at 30 Colon street which was being renovated by the company with aim of converting it into a high-end housing development. Sareb was awarded the unit for €9.5 million.

Whereas Banco Popular snapped up, among other properties, an industrial building on the Jacinto Benavente street for €5.3 million.

Also, six portfolios including homes and rural properties of a par value of €3.63 million, situated nearby the town of Redondela, were actioned.


Original article: Faro de Vigo (by Marta Fontán)

Translation: AURA REE