Tag: Benidorm

Sareb Will Take Ownership Of The ‘In Tempo’ Skyscraper In Benidorm

25 August 2016 – El Economista

The In Tempo skyscraper in Benidorm is the tallest residential tower in Spain and the second tallest in Europe, however, it is proving difficult to find an investor willing to pay the asking price. The property is weighed down by debt amounting to €100 million, which is in the hands of Sareb, but is reportedly worth around €90 million.

According to the newspaper El Confidencial, none of the offers for the skyscraper, which has been on the market since the end of last year, have exceeded €60 million. For this reason, Sareb has not waived its right to submit a higher offer to take over the asset, in an operation that would form part of the liquidation process of its current owner and developer, the company Olga Urbana.

According to online media, the bad bank has confirmed this information, however, “they assure that they have not yet received the asset foreclosure notice from the judge”.

The 52-floor building, which is 189m tall and contains 300 apartments is a symbol of the real estate bubble. Once the judge has authorised the award of the asset to Sareb, the bad bank could begin a new sales process involving negotiations with the two funds that have already expressed interest in the property.

Although construction work is still underway and the degree of completion ranges between 83% and 97%, apartments in the skyscraper are being sold for between €190,990.80 and €1.6 million, according to the online portal Idealista.

Original story: El Economista

Translation: Carmel Drake

Two Funds Submit Bids For InTempo Skyscraper In Benidorm

26 May 2016 – El Confidencial

(…). InTempo, the tallest residential skyscraper in Spain and the second tallest in Europe could have a new owner within a matter of days.

Two offers were presented for this bizarre and unfinished building in the Commercial Court of Alicante on 4 May. The Court is trying to resolve the liquidation process of the company that constructed the tower, Olga Urbana, which filed for bankruptcy at the end of 2014 at the request of its largest creditor, Sareb, to whom it owes around €100 million.

According to sources, two investment funds have submitted the offers, which reportedly amount to between €50 million and €60 million, and it is now up to Sareb, whose Board met yesterday, to decide whether to accept either of them or, on the contrary, foreclose the asset, given that the amount obtained would not be sufficient to cover the debt.

Valued at just over €90 million, according to Olga Urbana’s liquidation plan, Sareb has already acknowledged that it would be willing to accept offers equivalent to 70% of the appraisal value (in other words, €63 million), provided the payment is made in cash. (…).

Recovery of the Alicante Coast

If the sale of this asset goes ahead, experts say that it would represent a clear sign that the real estate recovery is now reaching one of the areas that was hardest hit by the crisis, namely Levante and, specifically, the Alicante Coast. Since the end of 2013, we have been seeing signs of improvement there, thanks mainly to the growth in secondary residence purchases by foreigners, which have enabled the absorption of a significant proportion of the “stock” and a slight increase in prices. (…).

Further proof of this renewed appetite for the Alicante Coast came in the form of the sale of the former Hotel Sidi de San Juan, whose owner, Sidi Española, filed for creditor bankruptcy in June 2011. A few weeks ago, at the end of April, the hotel was auctioned, and the property developer TM Grupo Inmobiliario submitted the highest offer to acquire the land and building that houses the former hotel, which for many years was the only five star property in the city. Located on the beachfront on San Juan beach, the consideration paid amounted to just over €19 million. (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Judge Approves Liquidation Plan For Olga Urbana

15 December 2015 – Valencia Plaza

Commercial court number 1 in Alicante has approved the liquidation plan for the developer of the In Tempo building in Benidorm, the tallest residential skyscraper in Europe, construction of which began in 2006. Olga Urbana is the construction company behind this unfinished building, which has now been put up for sale. The company has filed for bankruptcy and Antonia Magdaleno has been appointed as the bankruptcy administrator.

The company that constructed the building filed for bankruptcy after its main creditor, Sareb, which inherited the loan originally granted by Caixa Galicia amounting to just over €100 million, requested legal intervention in the company. According to the court order, Sareb proposes that the direct sales phase last for at least five months.

In addition, if during the first three months of this phase, an offer is received to directly purchase the building for a price equivalent to at least 70% of its appraisal value, then Sareb asks that it be awarded to the bidder without waiting for the five month period to end. Nevertheless, the sale must involve the property in its entirety; offers will not be accepted for individual homes.

Original story: Valencia Plaza (by Estefanía Pastor)

Translation: Carmel Drake