Defence Sells a Plot of Land Next to Castañón de Mena for Nearly €4 Million

27 April 2018

The sale is awaiting a final adjudication. The plot, in Hacienda Cabello, has 6,000 meters and a development potential of 8,572 meters.

The Ministry of Defense has put two properties on sale in recent months in Malaga’s capital, and both transactions are nearing a conclusion as they come close to completing the formal procedure of final adjudication. On the one hand, the divestment of the former Military Government building, located on the Paseo de la Farola, is going through a process of analysis of the documentation that was submitted by a company that made an offer to acquire the property at the end of last January by direct sale, with an assigned value of about 4.5 million euros. On the other hand, the ministry has just finalised the adjudication of a 6,036.24-square-meter plot of land in Hacienda Cabello, next to the Castañón de Mena residence, for almost 4 million euros.

The estate has an allocated residential development potential of 8,572.97 meters. The Institute for Housing, Infrastructure and Defense Equipment (Invied) confirmed the conclusion of the sale, although the sources consulted declined to provide official details of the sale value, as the adjudication has been awarded on an interim basis, and still requires the completion of the corresponding procedures.

The financial value related to this sale confirms that it would have been in a second auction. The estate’s exit value amounted to 4,431,860.23 euros, falling to 3,988,674.21 euros in the case of a second round. The property is in the vicinity of the military residence Castañón de Mena. According to the information sheet incorporated by Invied, the plot of land was awarded to the Ministry of Defence within the sector’s subdivisioning project, and the development works were already underway, with 14% completed up to the present moment. The development works were awarded by the Compensation Board to a temporary joint venture (UTE) composed of Dragados-Ervega-Insersa, with an initial budget of 4,744,075 euros (VAT excluded), an amount which was increased by another 551,825 euros in October 2017.

Original Story: Málaga Hoy – S. Sánchez

Translation: Richard Turner