Benidorm Grants Approval for Intempo Development

19 July 2019 – Richard D. K. Turner

The Benidorm City Council has approved the modified project for the Intempo high-rise. Its new owner, the Strategic Value Partners (SVP Global) fund, can now finish the development and put the flats up for sale.

While the building’s structure is complete, the common areas and individual flats still require work, especially has construction on the project halted in 2013. The developer forecasts that work on the development will wrap up in 18 months. The building will have 256 luxury flats, with prices running from 250,000 euros up to one million.

Original Story: Alicante Plaza – Alba Mercader

Photo: Rafa Molina

InTempo Case: Judge Ratifies Sareb As Privileged Creditor

16 February 2017 – Diario Información

The ruling dismisses claims made by companies and individuals in the bankruptcy of Olga Urbana, by stating that the bad bank was not responsible for administering the company.

“The engagement of Suasor was justified by the circumstances of the construction work” and “there is no evidence” that that company, Abanca or Sareb acted as de facto administrators. The judge of Commercial Court number 1 in Alicante has dismissed three claims, made by companies and professionals that participated in the construction of the InTempo building in Benidorm, and has rejected the possibility of revoking Sareb’s status as a privileged creditor. This decision, which according to sources close to proceedings could still be appealed, opens the way for the so-called bad bank to end up being awarded ownership of the tallest skyscraper in the tourist city. Construction of the skyscraper is currently suspended, pending resolution of the liquidation process in which its developer, the company, Olga Urbana, is immersed.

The ruling, to which this newspaper had access yesterday, is uncompromising given that it does not reflect the claims of the minority creditors. By contrast, it attributes the exhaustive control exerted by the financial entities involved, Abanca – formerly Caixa Galicia – and Sareb – which inherited the loan due to a legal mandate to free Abanca from its toxic assets – through Suasor, to the situation in which the construction of this concrete giant found itself, which meant that engaging an external company to control and verify how the project was being managed was completely “justified”. (…).


The incidental claims that the judge has now dismissed were filed by Kono Estructuras, a company that participated in the construction work and which is represented in the creditors’ bankruptcy to claim the payment of just over €1 million; the architect Robert Pérez Guerras, who also demanded the payment of a debt amounting to €133,019 for fees that he failed to receive when he left the Project Management team; and Isidro Bononat. All of them challenged the list of creditors prepared by the bankruptcy administrator, on the basis that Sareb, which is claiming the payment of just over €108 million, should not be accorded the status of privileged credit, but rather should rank as a subordinated creditor, given that it served as a de facto administrator of Olga Urbana and therefore, should assume some of the responsibility for its bankruptcy. (…).

The ruling from Commercial Court number 1 is clear. It states that the engagement of an external supervisor is “normal” in high-profile developments, such as the case of InTempo and that, in this case, Suasor limited its scope to controlling the progress of the construction work, and did not interfere the internal operations of the construction company.

Progress towards liquidation

This ruling represents another step forward in the InTempo liquidation process and, moreover, opens an important avenue in Sareb’s favour. The open auction to sell the building received just two bids: one for €47 million and the other for €52 million, which was ruled out because it arrived 20 days late. Both bids fell well below the appraisal value of the property, €90 million, and so Sareb, as a privileged creditor, submitted its own offer of €58.5 million, to be awarded the building. The claims paralysed that process but now that they have been resolved, all indications are that it may be reactivated.

Original story: Diario Information (by R. Pagés)

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