24/01/2014 – El Mundo
One of the most visible effects of the real estate bubble burst in mid 2007 was the paralyze of thousands of housing developments under construction that arose the appearance of the “ghost cities” all over the country. Apart from being the ugly element of the landscape, beyond the developments there are loss of job positions and an unpayable debt.
After multiple change of the owner, (…) most of the constructions fell finally into hands of Sareb that now decided to make a move.
Last week the company declared readiness to invest 100 million Euros to complete its 130 developments under construction – about 600 to be finalized by the end of 2014 – that means around 3.000 dwellings on sale on the market. The score makes Sareb the most active real estate developer.
(…) The units are mostly residencial and holiday houses, all of the in advanced stage of execution. (…).
Shadow of Demolition
Once Sareb completes the 130 developments, still it will have about 500 projects hibernated in various stages of execution. (…) The fact generated certain expectations concerning next step of the bad bank, as demolition became a sad consequenece of the real estate bubble burst. The entity does not reject the possibility. (…).
According to the development by geographical areas scheme, one can notice that the first to aim at will be Catalonia (40 projects), followed by the Valencian Community (21), then Galicia (12), the Community of Madrid (11) and Castilla and Leon (10). In turn, the plans do not foresee developments in the Basque Country, the Region of Murcia and Ceuta and Melilla. (…)
“Each development will have its own DIP (Debtor in Possession) that will coordinate and control other companies” – inform sources from the entity. (…).
Sareb will hire extrenal companies to sell the completed dwellings (…) that will additionally establish their prices. (…) Also, in order to give the “maximum guarantee” to the purchasers, the bad bank will sign up the aftermarket and maintenance service firms.
Source: El Mundo