Marbella’s Hotel Don Miguel Will Reopen In 2019

4 May 2017 – Hosteltur

The Magna Hotels and Resorts group will invest €70 million in order to reopen Hotel Don Miguel de Marbella in 2019, fifteen years after it was closed. The property will be managed by Club Med and will be a high-end complex aimed at family tourism.

The project will result in the creation of around 300 jobs during the construction phase, as well as of many permanent jobs once it has been reopened, according to the President of Magna Hotels and Resorts, Jihad D. Megharief, and the Vice-President of Club Med, Gregory Lanter, both speaking at a press conference.

Megharief explained that the Arab investor group, which has owned the hotel since 2013, conducted an 18-month selection process to choose Club Med as the “most appropriate” operator from more than twenty candidates, which means that the French group will manage “this resort successfully for twenty years”.

“We are very happy to be investing €70 million in the transformation of an iconic hotel to convert it into the most important family resort in Spain”, said the President of Magna Hotels and Resorts, who highlighted that the project “is going to bring a lot of prosperity to Marbella”.

The event to unveil the hotel initiative was chaired by the mayor of Marbella, José Bernal, and was attended by the CEO of the public company for Tourism and Sport in Andalucía, Javier Carnero.

One of the best resorts on the planet

The complex, which will be called Magna Palace, will have 486 rooms and almost 1,000 beds. It expects to attract between 30,000 and 40,000 clients per year, according to remarks by the Vice-President of Club Med, who said that the resort will be aimed at families with children aged over 4 months.

Lanter explained that the hotel will also have several swimming pools, a golf course, sports facilities, a spa, two restaurants, a stage and significant facilities for conferences, with the aim of also appealing to European business tourists.

The leader of the French operator said that the project “is a wonderful idea that is already underway” and that it will convert an iconic hotel on the Costa del Sol into “the best Club Med complex on the Mediterranean and one of the best resorts on the planet”.

The heads of Magna Hotels and Resorts and Club Med thanked the Town Hall of Marbella for its support and requested backing from the Junta de Andalucía because “this project will only be a success if we continue to move forward together”.

Meanwhile, Bernal highlighted the importance “not only of reopening the hotel, but also of doing so with the backing of the two exclusive firms”, and the repercussions that the investment will have for Marbella in terms of employment .

Original story: Hosteltur

Translation: Carmel Drake

La Zagaleta’s Owners To Build Luxury Homes For Millennials

30 April 2017 – Expansión

Located in the municipality of Castellar, in Cádiz, alongside the exclusive urbanisations of Sotogrande and Valderrama, the latest estate in the area is awaiting approval from the Town Hall to become a modern and luxurious residential resort. The site will also include a first-rate golf course and a five-star hotel. The project in question is Valderrama 2, an estate with a surface area spanning 220 hectares, which was acquired by the company La Zagaleta Limited last year.

The firm, which is headquartered in London and which owns another luxury residential development, known as La Zagaleta, purchased the Valderrama group, the company that owns this plot, as well as a golf course of the same name, regarded as the best in Spain and one of the best in the world, in an operation worth €40 million (…) in December 2015 (…).

The new project from the owners of La Zagaleta, considered the most luxurious urbanisation in Europe and located in the Malagan municipality of Benahavís, will also be for millionaires, but with certain differences. “In La Zagaleta, there are two lines: one with homes worth between €5 million and €8 million and the other with homes worth more than €11 million, which is the line we are promoting. Valderrama 2 is a different concept, its homes are worth between €3 million and €5 million, which buyers can easily finance if they want”, said Ignacio Pérez, Director of Business Development at La Zagaleta.

An integrated resort

Similarly, the new development, which will have a maximum of 200 homes, with plots of between 2,000 m2 and 3,000 m2, will be targeting a different public to La Zagaleta. (…). “The idea is to build homes without fences, like in Los Angeles or Florida, where you can see without being seen, which will incorporate the latest developments to meet the demands of the millennials”, he added. The objective of La Zagaleta is to sell these homes in advance so that its clients can personalise them during their construction. (…).

La Zagaleta expects construction to begin within three years. (…).

In total, the group expects to invest €200 million of its own funds developing the urbanisation over a ten year period, although that figure could rise to more than €400 million. “We will get on with building the homes, at a rate of around 20 per year, for example. The logical thing is to finance them over the long term so that buyers can easily subrogate those loans and purchase the properties using minimal own funds”.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

The Seven: Sotogrande Unveils Its Latest Ultra-Luxury Villas

11 April 2017 – Cinco Días

Unless you have €5,000 a month to spent on the service charge, then these exclusive villas are not for you. In fact, they are a concept that has rarely been seen anywhere in the world: a residential development comprising seven homes, each of which is going to be designed by an internationally-renowned architect, in a natural setting designed by a famous landscaper. The development is called The Seven. And it is the latest ultra-luxury initiative in Sotogrande, San Roque (Cádiz).

Sotogrande is undergoing a complete transformation. Established in 1962 by the millionaire Joseph Rafael McMicking, a businessman of Filipino origin, it quickly became one of the poles of attraction for domestic and overseas millionaires alike. Following the purchase from NH Hoteles in 2014 by the funds Cerberus and Orion, for €225 million, the management company has spent a while reflecting on what this urban complex in the Mediterranean should look like in the future. And the answer came from the past. “When you look at the history of Sotogrande, everything revolves around exclusivity and quality”, explains Marc Topiol, CEO of the company. (…).

The villas will crown a small outcrop in one of the highest areas of Sotogrande, with views over the sea, in the closed reservation of La Reserva, spanning 467 hectares. Construction of these dream homes, in the middle of this natural setting, will begin this year, with the aim of selling the properties by 2020.

The company has chosen seven internationally renowned architects to integrate their designs into The Seven (…).

A home in The Seven will cost between €14 million and €18 million. Each property will have a surface area of between 1,800 m2 and 2,400 m2, with the main bedroom measuring more than 120 m2. All of the homes will be equipped with everything a millionaire could wish for: a private spa, indoor and outdoor swimming pools, a cinema and gym. “We will take care of everything. From paying bills to maintaining the garden and the home, opening up the home when the owner so requests, daily room service, chef, shopping, cleaning, restaurant reservations, transport, it will be live living in a hotel”, says Topiol. All for €5,000 per month (excluding extras).

In addition, residents will enjoy use of the shared facilities that Sotogrande has designed for La Reserva: a spa resort, one of the largest navigable lakes in Europe, tennis courts, golf, an artificial beach, a beach club….in an investment made by the company amounting to €40 million. Not to mention the well-known facilities at the urban complex, such as the Santa María Polo Club, horse riding facilities, the port and the famous golf courses, such as Valderrama and Real Club de Sotogrande. (…).

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Golf Property Sales Boost Recovery Of RE Market

9 September 2016 – Opp.today

Spanish property sales in major tourism areas have been starting to rise over the last year or so, with a little help from the golf sector.

In fact, the golf industry is a key driver of Spanish home sales, achieving nearly 3,000 transactions in 2016 alone – and buyers can benefit from prices that often rise faster than similar homes elsewhere.

Being close to a golf course can add up to a quarter to the value of a property compared to a regular home, says a new report from the Arum Group, which develops and manages luxury resorts in Spain including Abama Luxury Residences, La Manga Club and Eldorado Playa.

More than two-thirds (68%) of golf courses in Spain have a direct or indirect link with a real estate development, according to the data produced in conjunction with the Real Federación Española de Golf.

The Arum Group has seen strong demand at its Abama Resort in Tenerife with 45 sales in 2015, almost 50% more than predicted, and rising sales from sports enthusiasts at La Manga in Murcia, which has three golf courses.

Agustin La Rocca, Sales Director at Arum Group, says, “The Spanish property market is currently on an upward curve and one of the main drivers is the golf industry. We have certainly noticed the appeal that having world class golf courses adds to real estate developments.

“At both La Manga Club and Abama, we are graced with outstanding examples and there is no doubt that they add to the appeal for our buyers. For a start it means that their views will never be interrupted or built upon and also means that the peace and tranquility of the area will be preserved.”

Golf is a big draw for foreigners in Spain and it is estimated that 160,000 Britons in the country are close to a golf resort. In total, 234,500 properties enjoy ‘direct’ access to a golf course.

Most overseas demand for Arum Group Spanish golf properties comes from the UK, Belgium and Scandinavia, but it has buyers across the globe.

The EU Referendum vote has not affected UK buyer demand, says Agustin La Rocca.Despite Brexit, British buyers will undoubtedly continue to aspire and want own their own luxury holiday homes in Spain. We have found that our clients are very focused and know exactly what they want from a second home. We do not have many competitors with the same standard of services and facilities and we expect UK demand to continue to grow.”

“The reason for buying depends on the project. Investors at La Manga Club are attracted to its renowned sporting facilities. The gated community offers world-class sporting amenities and wellness facilities perfect for second-homes investors looking for a home in the sun. On the other hand, Abama is more focused on luxury and glamour for those looking for the ultimate cuisine, golf and hotel facilities.”

With a high buyer demand, other developers are considering entering the sector, but it takes experience to be successful, says Agustin La Rocca.

“Over the past year, there have been a number of developers in Spain who have tried to develop golf resort but this is a science that needs lots of technology and it takes a lot of practice. It essential to have a highly experienced team behind the resort in order for it to be a success. In that sense, Arum Group has more than 20 years of experience in developing some of the top golf resorts in Spain.”

As well as boosting real estate sales, golf has also had a positive impact on the Spanish tourism industry with visitor numbers increasing 36.3% in the first quarter of 2016 compared to the same period in 2015, in the region of Murcia alone.

La Manga Club, a 1,400-acre resort in Murcia popular with sports enthusiasts, has seen strong sales thanks to its on-site sporting facilities including three golf courses. It also reports, a rise in visitors using the available rental accommodation. These findings are supported by the Murcia Tourist Board, which recently released data highlighting that tourists staying in private rented accommodation in the region has risen by 25.6% in 2016 compared to the same period last year.

There is a similar story at the Abama Resort in Tenerife, which features an 18 hole Dave Thomas designed golf course and tennis academy. 45 units were sold in 2015, almost 50% more than predicted, with all purchasers attracted by the lifestyle offered by the resort and its amenities. (…).

In May 2016, across all Spanish property sales, not just golf villas, 32,512 homes were sold, up 23% year-on-year, according to the National Statistics Institute. It is the highest figure since January 2013 and the fourth consecutive month of double-digit annual increases.

Original story: Opp.today

Edited by: Carmel Drake

La Zagaleta To Replicate Its Luxury Marbella Complex In Sotogrande

8 January 2016 – Expansión

La Zagaleta, one of Europe’s most exclusive residential developments, located on the Costa del Sol, is going to replicate its business model in Sotogrande (Cádiz), the other major hub for luxury real estate in Andalucía.

Through its English subsidiary, the group has acquired the prestigious Valderrama golf course from the British company MGI for €40 million. Moreover, it will invest another €200 million in the development of the project.

As an indication of its exclusivity, this sporting venue is the only place that has hosted the Ryder Cup in Continental Europe (in 1997). The Ortiz Patiño family converted it into a first-class facility in 1984 and since then the complex has been sold several times. La Zagaleta will continue to lease the venue to the golf club that currently operates there.

Several companies are included in the operation, which encompasses the residential estate, the land that is still undeveloped and the project for a new golf course in the municipal area of Castellar, in other words, Valderrama II. In total, the site covers 220 hectares. This plot is one of the few that has been granted a licence by the Junta de Andalucía to construct homes after IU (la Izquierda Unida or United Left (Political) Party) – which led the Ministry for Tourism under the previous government – approved a restrictive regional policy to limit urban expansion.

Residential and tourist properties

La Zagaleta’s plans include placing it in the “current golf course’s frame of reference” and constructing a residential tourist and hotel resort “in keeping with the quality standards synonymous with La Zagaleta”. Thus, it will develop villas and homes on this land, which will require additional investment of €200 million over the next ten years.

According to a statement by the company, all of the necessary permits and licences are in place to begin the work, but the start date has not been confirmed yet because the design phase is still being completed. In any case, the design “will be inspired by the philosophy and values of La Zagaleta”, an urbanisation that is accessible only to those individuals who have assets worth ten times the value of the property that they acquire.

The CEO of the firm in Spain, Jacobo Cestino, said that “this operation strengthens our leadership position in the luxury property market and links us to one of the most prestigious golfing brands in the world”. Similarly, he said that the company has not ruled out acquiring other brands in the medium term.

La Zagaleta, founded by Enrique Pérez Flores and currently chaired by Oswald Grubel, the former CEO of UBS and Credit Suisse, has 235 mansions with a market value of €1,800 million, which increases to €3,000 million if we include the two golf course and other facilities at the 900 hectare site.

Original story: Expansión (by Rocío Ruiz/Lidia Velasco)

Translation: Carmel Drake

‘La Zagaleta’ Tripled Its Profits In 2014 To €10M

15 June 2015 – Expansión

La Zagaleta is regarded as the most luxurious residential development in Europe / The complex in Marbella, which has 235 homes, tripled its profits in 2014 to €10 million.

In just 900 hectares of land nestled in a Mediterranean forest a few kilometres from Marbella, and guarded by the highest level of security, the residential development of La Zagaleta hides a real estate oasis to which only a few wealthy individuals can aspire.

The Chairman of the company, Oswald Grübel, estimates that the 235 mansions that comprise the residential development are worth €1,800 million at market prices, although that figure increases to €3,000 million if we include the golf courses and other facilities at the site, which is linked together by a 60km-long internal road.

Considered the most luxurious and exclusive urban development in Europe, La Zagaleta is located in the middle of the Golden Triangle – between Marbella, Benahavía and Estepona – the area where the real estate recovery has started in Spain, driven by the pull of international investors.

Grübel, a former CEO of the Swiss bank UBS, took over the reins in 2013, after the Chairman and founder, Enrique Pérez Flores, decided to stand down from his role, at the age of 90. Last year, the company reported record sales of €40 million and tripled its net profit to €10 million. One of the drivers (behind these results) was the sale of several plots of land to a US fund, whose identity has not been disclosed for confidentiality reasons.

An agreement has been made with that fund to manage its assets, i.e. to build villas (on the acquired plots) and then sell them. The contract provides for the construction of the first two (villas) through a joint venture, on which work will begin this year; and then to build several more (villas) over the next five years, although that figure may increase.

According to Jacobo Cestino, CEO of La Zagaleta, in 2006, a strategic decision was taken for the firm to develop the land, in order to generate higher margins and so it reserved all of the available land. “Homes may end up forming part of the stock for a year and a half. That is a risk we run, but the reality is that we have sold properties that have not even been completed”. Thus, this year, the company will invest €15 million in three new mansions, whose market price will be around €40 million.

Cestino also revealed that the company is considering corporate operations, “because our aim is to grow and export our brand. We are analysing operations to form partnerships overseas on a daily basis. We expect to finalise at least one purchase between now and the end of the year”.

In La Zagaleta, around 150,000 m2 of land is occupied, although the buildability ratio is reduced to 15%. Thus, there is still 200,000 m2 available, divided into 185 plots. In terms of rotation, Cestino indicates that “there is still quite a lot”. In recent years, there have been 8 or 9 re-sales per year on average.

Original story: Expansión (by Lidia Velasco)

Translation: Carmel Drake

Colonial To Open 4-Star Hotel In Former Palace In Almería

9 June 2015 – Expansión

The real estate group Colonial is branching out from its traditional office market. It will open a resort hotel in Mojácar (Almería) in the next few weeks.

(…)

The building has been closed for years and so Colonial has undertaken a complete renovation of the property over the last few months. The facilities include the former Palace of the Marqués de Chávarri, constructed at the beginning of the last century, which will house some of the hotel’s common areas as well as some of the suites. It also has a large modern annex building which contains 140 rooms in total.

The hotel will be operated by the Catalan chain Fergus, under its Fergus Style brand. It will be called the Gran Hotel Palacio de la Marina and will be a four star establishment. It is located in the Marina de la Torre development, next to Marina Golf, an 18-hole course. The hotel has a fitness room, spa and several rooms for conferences and events.

Fergus Hotels, headquartered in Santa Susanna (Barcelona) operates 17 hotels in Mallorca, Ibiza, the coast of Barcelona, the Costa Brava (Gerona) and the coast of Almería.

(…)

Original story: Expansión

Translation: Carmel Drake

Sareb Is Selling The Assets It Inherited From Polaris

7 May 2015 – Expansión

The company has appointed N+1 to manage the sale of 3 golf courses, two 5-star hotels and several residential estates.

Sareb wants to cut its ties with one of the ‘great chapters’ of the real estate bubble as soon as possible. In the last few days, the company chaired by Jaime Echegoyen has started the process to dispose of the property it inherited from Polaris World, by putting a portfolio with a nominal value of €500 million up for sale. The market price may amount to less than half of that value.

The portfolio comprises three golf courses, two five-star hotels and several residential complexes, built in Murcia by Polaris, which Sareb inherited in the form of property developer loans from Banco Valencia and Bankia. The sale also includes loans with real estate collateral that have not yet been foreclosed.

Sareb has appointed N+1 to manage the process and according to sources at funds consulted by Expansión, the firm has already distributed information to potential investors (corresponding to the so-called) Project Birdie.

The assets and loans up for sale come from Inversiones en Resorts del Mediterráneo (IRM), a company created in 2009 by Bancaja, Banco de Valencia, Popular and CAM to manage the Polaris assets that were left after the property developer’s debt was restructured.

Sareb’s decision to sell has generated confusion for the other two creditors, Banco Popular and Sabadell – following the latter’s absorption of CAM – because they were not notified (in advance) and because they believe that the best way of maximising the value from IRM’s assets is a block sale, given that they comprise a single residential estate and six golf courses. As a result, it is likely that these entities will contact Sareb over the next few days with a view to repositioning the sale.

When IRM was created, the company held assets worth €991 million, although by the end of 2013 – the latest available accounts – they had deteriorated (in value) by almost €500 million. The owners of its capital are Sabadell – covered by CAM’s EPA (Asset Protection Scheme or Esquema de Protección de Activos) – Bankia, CaixaBank and Popular.

Original story: Expansión (by Jorge Zuloaga)

Translation: Carmel Drake