The Owners of La Zagaleta Will Create a Luxury Development for Millennials

28 April 2017

The British firm, which owns the most luxurious resort in Europe, is working on a development in Cádiz, with homes which will cost between three and five million euros, aimed at the younger generations of extremely wealthy families.

Located in the municipality of Castellar in Cádiz, next to the exclusive developments of Sotogrande and Valderrama, the last available estate in the area is awaiting the approval of the local town council to become the site of a modern and luxurious residential resort, which will include a top-level golf course and a five-star hotel. The estate is called Valderrama II, a 220-hectare farm that was acquired last year by the company La Zagaleta Limited.

The firm, based in London and owner of another luxurious residential development called La Zagaleta, bought the Valderrama group, the company that owns the land, as well as the golf course of the same name, considered the best in Spain and one of the best in the world, in a deal valued at 40 million. “The agreement was closed in December 2015. There are a number of possibilities but we intend to convert Zagaleta Limited into a holding that integrates several luxury brands, and that is why we choose only projects that have established brands that are well-known in the real estate market. Here we have a unique opportunity to develop the land from scratch. The land has a total of 220 hectares, where we can build 200 homes, a golf course and a hotel,” Ignacio Pérez, Business Development Director of La Zagaleta, explained.

The owners of La Zagaleta’s new project, considered the most luxurious development in Europe, and located in the Malaga municipality of Benahavís, will also be for millionaires, but with some differences. “In La Zagaleta there are two lines: one with houses of between five and eight million euros and another one starting with eleven, which is the one we are promoting.” Valderrama 2 is another concept, with houses of between three and five million euros, that the buyer can easily finance,” Ignacio Pérez stated.

Also, the new venture will have a maximum of 200 homes, each with between 2,000 and 3,000 square meters of land, which will be aimed at a different public than the norm in La Zagaleta. “In this area, we could build townhouses, but that is not our thing. We will make an integrated resort, with private streets, similar to the luxury developments that exist in the United States, and where the nature of the surroundings mitigates prevailing winds found in the area,” the Director of Business Development pointed out. “The idea is to make homes without fences, like in Los Angeles or Florida, where you can see without being seen, and that incorporate the current demands of millennials,” he adds.

The objective of La Zagaleta is to pre-sell the homes so that each client can customise it during its construction. “We believe that buyers of these homes will be an international mix: people who like to play golf but we will also go after clients in Tarifa, which is very close to Valderrama 2. And don’t forget that we are 20 minutes from Gibraltar airport,” Ignacio Pérez stressed.

La Zagaleta has given itself three years to begin construction.” We will spend 2017 solving some critical steps and setting a timetable, but we want to have the development under construction by 2020 and then complete it rapidly.”

In total, the group plans to invest 200 million of its funds in developing the development over ten years. The total investment could reach over €400 million. “We will be building the homes, for example, at a rate of about 20 a year. The logical thing would be to finance them in the long term so that the buyer can easily take on the outstanding loan and buy the property with a smaller downpayment.”

Original Story: Expansión – Rocío Ruiz

Translation: Richard Turner

189