Tag: cash payment

1 July 2015 – El Confidencial

The countdown has begun. The Valdebebas Compensation Board has approved the terms and conditions for the auction of two plots of land destined for residential use measuring 18,000 m2 in this urban development, where 190 social housing homes will be built. The Board expects to receive at least €14 million for both plots, i.e. around €700 per square metre.

The plots, which will be auctioned individually, are located next to the site that will house the future Valdebebas shopping centre. One of them, which the Compensation Board has set an asking price for of at least €5.6 million, contains 7,400 m2 of land for residential use, whilst the other measures 10,200 m2 and will have an initial auction price of €8.3 million. (…).

In order to participate in the auction, interested parties must pay a deposit of €300,000 – before the first week of September – which will be deducted from the final auction price in the case of the winning bidder and returned upon completion of the process to all other bidders.

The interested parties, expressly invited by the Compensation Board, will have access to all of the legal, economic and environmental information about the plots and must submit their bids before 12:00 (midday) on 30 September, when all of the envelopes will be opened. On 1 October, the Advisory Council of the Compensation Board will award the plots and one day later, the sale and purchase deeds will be signed. All of the auction details are available on the Valdebebas website.

The plots owned by the Compensation Board have aroused interest from the cooperative manager Ibosa, which was hoping to offer €70 million for all of the land owned by the Compensation Board – with the exception of one of the plots up for auction that has been promised to FCC -. An agreement that has not yet been finalised, although discussions are continuing with the Board for the purchase of the remaining land that will not be auctioned.

Payment options: in cash, deferred or by instalment

The terms and conditions stipulate three possible forms of payment: in cash, deferred or by instalment. Cash offers will prevail over deferred payments, unless the latter exceeds the former by 2.5%. Cash offers will also prevail over payments by instalment, except when the latter exceeds the former by 5.5%. Finally, deferred payments will prevail over payments by instalment, provided the party that chooses the latter option does not present an offer that exceeds the former by more 3%.

If any bidders choose the deferred payment option, then they must pay the total amount, i.e. 100%, five months after the plot of land is awarded, i.e. by 2 March 2016. Meanwhile, 70% of any payment by instalment must be paid by March 2016 and the remaining 30% by September 2016. (…).

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake