Tag: licence

Colau Announces Fines Of Up To €600K For Unlicensed Tourist Flats

29 June 2016 – Expansión

Yesterday, the Town Hall of Barcelona announced that it will impose tougher fines in its attempt to eradicate illegal tourist apartments. The sanctions will amount to €30,000 in the case of individual apartment owners and up to €600,000, in the case of virtual platforms promoting unlicensed apartments against which legal proceedings have already been started. The fines will not affect individuals who rent out a room in their homes, but will apply to those who rent out entire homes and do not have the necessary tourist licences, issued by the Generalitat.

Legal proceedings were launched against Airbnb last year and yesterday, that company issued a strong statement against the municipal regulations, which it described as “disappointing” and “archaic”, given that, in its opinion, “they protect traditional companies and leave no room for individual (entrepreneurs)”.

The main trade association in the sector, Apartur, predicted that the plan “will not work at all”, given that (for it to be successful) it would have to be accompanied by the lifting of the veto that prevents the legalisation of new tourist apartments. Apartur represents 210 companies, which own 7,000 of the 9,600 legal tourist apartments in the city.

The fight against illegal tourist apartments is one of the battle horses that Ada Colau set herself when she was elected mayoress of Barcelona, just over a year ago. The Town Hall said yesterday that in the last year and a half, it has performed 2,505 inspections, of which 2,701 have concluded with the opening of disciplinary proceedings. It also confirmed that it hired more inspectors on Monday.

Last year, Ada Colau opened the first legal proceedings against Airbnb and Homeaway, and following the continuation of the new requirements, nine online portals have stopped advertising unlicensed tourist homes, including Fotocasa, Tripadvisor and Rent4days.

Original story: Expansión (by David Casals)

Translation: Carmel Drake

Villar Mir Receives Approval To Resume Work At Canalejas

24 May 2016 – Cinco Días

The Canalejas Complex has returned to cruising speed after overcoming one of the obstacles that stood in its path. In April 2015, the Local Heritage Committee (comprising the Town Hall of Madrid and the regional Government) opened an investigation into the construction work that the Villar Mir Group was carrying out, after it detected that damage had been caused in the first bay (the space between load-bearing walls). After months of work, it completed its investigation in January 2016 – confirm sources at the company – and so Villar Mir was allowed to continue with the building work at the site, which will house a Four Seasons Hotel, luxury homes and a shopping arcade right in the centre of the capital.

“The investigation into the first bay was resolved and the suspension (of the building work) was lifted”, explain sources at OHL, the listed company that forms part of the Grupo Villar Mir and which is responsible for developing this complex. The Committee’s investigation was opened by municipal technicians when Ana Botella (PP) was still the mayoress. Sources at Estudio Lamela Aquitectos, which was appointed to design Canalejas, confirm that the construction work has continued as normal since then.

The problem arose when part of the bay, located in a small area, threatened to break off, say sources at the company chaired by Juan Miguel Villar Mir. For the time being, although the investigation has been closed, they do not know whether the listed company will face any financial penalties in the future.

The team led by the Government of Manuela Carmena (Ahora Madrid) has also granted OHL a structural licence to raise the frame of the building, and so construction work has continued apace during the first few months of the year. “We received the structural licence in January”, say sources at Estudio Lamela. “That licence has allowed us to carry out the work that is visible from the outside”, say sources at OHL. Now the only licence pending is the one relating to the completion of the refurbishment.

The project was unblocked at the end of last year by political and legal means. On the one hand, a trial judge dismissed the application to suspend the building works, which had been filed by a company that alleged that it had signed a previous sale and purchase contract with Santander. Villar Mir ended up acquiring this central block for €215 million and whereby took ownership of the properties in the Canalejas area, next to Puerta del Sol.

On the political side, after Carmena took over the reins of the city, the Town Hall decided to review the project and it opened a negotiation table with the company and the regional Government. In October, the parties agreed to reduce the volume of the block at its highest point so as to reduce the visual impact. The agreement meant that the listed company had to relinquish its plans for the height of the building in order to unblock the construction work and accept a lower return on the project.

The last remaining stumbling block now is the public prosecutor, which is continuing its investigation, following a claim by the Madrid, Ciudadanía y Patrimonio Association that an alleged crime has been committed against the historical heritage of the city during this refurbishment.

The renovation involves seven adjoining properties located between Calles de Alcalá, Sevilla, Plaza de Canalejas and Carrera de San Jerónimo. For the last few decades, those historical buildings have housed the headquarters of financial institutions such as Banesto, Central Hispano and Zaragozano.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: 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

Operación Campamento Delayed Until Mid-2016

23 September 2015 – El Confidencial

According to the popular proverb, Rome wasn’t built in a day. And Operación Campamento, a development that has already been delayed for more than a decade, may not be completely “clean” to be put up for auction until the middle of 2016. In other words, one of the most anticipated urban planning projects in the capital, whose expected sale was announced in style by the Ministry of Defence – which owns the land – through the real estate website Addmeet in April, will have to wait almost a year. And all because of the urban “paperwork”.

At the beginning of September, Pedro Morenés, from the Ministry of Defence, blamed the Town Hall of Madrid for the delay, as it “has to grant the licences for the project to go ahead. The Ministry of Defence has already gone to the Town Hall to ask for the permits”, he assured the Senate.

According to the experts consulted by El Confidencial, “although the pending urban planning procedures are simple, they will take time. And, in this case, we could be talking about months”. However, far from harming the Ministry of Defence, which expects to generate revenues of €80 million from the sale – as reflected in the State’s General Budget for 2016 – the delay may end up benefitting the central government department, given the significant level of interest the land has sparked amongst investors over the last year. At the beginning of July, the State Land Company (‘Sociedad Estatal de Suelo’ or Sepes) awarded the largest package of land in Madrid to date – measuring 120,000 m2, on which more than 1,200 social housing properties will be constructed – for €50 million.

On a smaller scale, but of no less importance for the purposes of measuring the temperature of this market, have been the on-going sales of land in Valdebebas, which has also witnessed this renewed buyer appetite at first hand, along with the slight “overheating” that is starting to be seen in some land purchases. Prices in this development bottomed out a few years ago at around €800/m2 and currently stand at around €1,100/m2, although some operations are being closed at higher prices.

The experts consulted calculate that Operación Campamento may be put on the market for between €200 million and €250 million, and that the urban planning delay may tip the balance towards an even higher figure. It is worth remembering that this development has a surface area of almost 1.5 million m2, of which 1.3 million m2 are buildable, and almost 11,000 homes (social housing and unsubsidised homes) may be constructed. (…).

In any case, the Town Hall insists that “the procedures that the Ministry of Defence says depend on the municipal institution, are being carried out within the appropriate timeframes” and they criticise the Ministry of Defence for trying to make the general public believe that the Town Hall is to blame for the delay to the Operación. (…).

Original story: El Confidencial (by Elena Sanz and Paloma Esteban)

Translation: Carmel Drake

Town Hall Seeks To Resume ‘Canalejas’ Construction Work

20 July 2015 – El Confidencial

Almost four months have passed since Madrid Town Hall’s Department of Town Planning decided to suspend some of the construction work at the monumental Canalejas Project, as a precautionary measure. The council, which was led at the time by Ana Botella, took the decision because it considered that some of the demolition work being carried out by the Villar Mir Group was affecting certain areas that are protected due to their historical value and was exceeding the work permitted by the municipal licence.

Following the electoral change, the new team responsible for Town Planning at Madrid’s Town Hall, led by Manuela Carmena, seems willing to resolve this situation as soon as possible. According to sources close to the project, the council is working to create a technical committee that will allow the works to recommence, however the Town Hall has denied that this is the case, at least for the time being. (…).

At the end of 2012, the Villar Mir Group purchased seven buildings located on Plaza de Canalejas (number 1), Carrera de San Jerónimo (number 7) and Calle Alcalá (numbers 6, 8, 10, 12 and 14) from Banco Santander. The group paid more than €200 million for the buildings and with an additional investment of around €300 million, is going to create a unique complex that will house around thirty luxury homes, a shopping centre measuring 16,000 m2 spread across three floors and a five-star hotel to be operated by the Four Seasons chain with 215 rooms and measuring 26,000 m2.

To achieve this, all of the buildings need to be joined up and to make that possible, Madrid’s Town Hall (PP) changed the protection in place on some of the buildings a few months ago. Specifically, it reduced the ‘Building of Cultural Interest’ protection to the front bay (crujía) and roof of the building at Canalejas, 1 and the front bay (crujía) and patio at Alcalá, 14; it also reduced the protection on all of the buildings to confine it to the façades.

Suspension of the building work

And it was the work performed on the front bay (crujía) between Calle Alcalá, 14 and Plaza de Canalejas, 1 that led to the stoppage of the works, as the Town Hall considered that protected pillars, slabs and stairs had been demolished…Nevertheless, sources linked to the project say that all of the work has been performed in accordance with the scope of the licences granted. The rest of the works – which affected 90% of the complex – have continued in the meantime, in accordance with the licences obtained.

In order to resume the suspended work, the planning experts consulted say that the licence for the next phase of the work needs to be granted, i.e. the licence for the new construction work. And for that to happen, the construction company must legalise their actions. The creation of a technical committee could accelerate the process, whereby leaving the final decision in the hands of professionals and not Madrid’s Town Hall.

It is worth remembering that Canalejas, along with other projects such as Operación Chamartín, Campamento and the shopping centre that is planned for Madrid Río, are coming under the spotlight of the new mayoress, Manuela Carmena, who is now less critical of these projects than she was in her electoral program. Carmena recently met with Antonio Béjar, the head of the Distrito Castellana Norte project, and promised that she would evaluate the most important urban planning project in the capital.

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake