Tag: Murcia

Nickelodeon Opens First Entertainment Space In Thader Shopping Centre

18 May 2017 – La Verdad

Parques Reunidos, Viacom International Media Networks and Metrovacesa have reached a strategic agreement to build leisure parks with Nickelodeon characters in shopping centres. In this way, the first one will be opened by Metrovacesa in 2017 in the Thader shopping centre.

This new agreement expands the current relationship between Parques Reuindos and VIMN following the success of Nickelodeon Land at the Amusement Park in Madrid and NickLand in Movie Park Germany. It also represents the first incursion by Parques Reunidos and Nickelodeon into the Mall Entertainment Centres (MEC) business.

Thanks to this collaboration, which combines the experience of Parques Reunidos and the brand recognition of Nickelodeon, the development of this new concept of leisure parks in shopping centres is already in advanced negotiations in several countries in Europe such as the United Kingdom, France, Italy and Portugal, as well as Murcia.

The new theme park in Murcia will have a surface area of approximately 5,000 m2 and will be equipped with interactive attractions, an adventure zone, an area for toddlers, a driving school and themed Nickelodeon rooms, ideal for holding birthday parties and family get-togethers.

Children and their families will be able to enjoy all of the theming and attractions, as well as have the opportunity to get to know some of the most well-known and loved Nickelodeon characters, such as Sponge Bob Square Pants, Dora the Explorer, the Ninja Turtles, Paw Patrol and The Fairly Oddparents. In addition, the centre will have a restaurant area and a store selling Nickelodeon products.

Fernando Eiroa, CEO of Parque Reunidos, said that he was convinced that “the magic of Nickelodeon, and the innovation and uniqueness of this new space will make it an important focus of attraction for local residents, not only in Murcia but also in its area of influence, replicating the success we have achieved with Nickelodeon Land at the Amusement Park in Madrid and NickLand at Movie Park Germany”.

“The objective of Nickelodeon is to have a presence wherever there are children, and so we are very pleased with the opportunity to diversify our portfolio, extend the Nickelodeon brand and bring our characters to life through these new family entertainment centres”, explained Gerald Raines, Senior Vice President of Global Recreation for Viacom International Media Networks.

Meanwhile, Manuel Gil, Senior Vice President and General Manager for Spain, admitted that he was excited to see how Nickelodeon, the entertainment brand for children and families “is continuing to expand its global business with the opening of its first leisure park in a shopping centre in Spain”.

Pedro Cortés, Director General of Strategy and Corporate Development of Parques Reunidos, said that “this is the first step of an ambitious and promising strategic growth project for the company, which will continue soon with important agreements to build leisure parks together with the main shopping centre companies in the main countries in Europe”.

In the words of the Director of Real Estate at Metrovacesa, Jesús Vicente, “this is a very important step in the strategy to strengthen the leisure offering in our shopping centre portfolio, with a differential product, in partnership with innovative partners who are leaders at the global level, which will allow Thader to serve as a benchmark for family leisure in the Community of Murcia”.

Original story: La Verdad

Translation: Carmel Drake

Is Murcia’s ‘Ghost Airport’ Finally Set For Take-off?

24 April 2017 – El País

The government of Murcia has made definitive steps toward reviving the region’s international airport in Corvera and is once again putting the management contract for this ‘ghost’ travel hub out to tender, despite the failure of other similar ventures in Spain to pay off and in spite of the fact that it is still embroiled in a long-running legal battle with the first company to win the concession back in 2007.

The new phase of this cripplingly expensive aviation saga began on March 25 with the bidders’ conditions released in the Official Journal of the European Union. Interested companies have until May 2 to register. After that date, those who can provide proof of financial buoyancy and experience will have two months to provide detailed technical and economic plans.

Corvera airport received an initial investment of €270 million and building work on it is all but finished. But the facility was never opened to the public and, in December 2015, the regional government was forced to cancel the contract with Madrid-based Sacyr on the grounds that the company granted the concession had exceeded its allotted time period.

The subsequent legal battle between Sacyr and Murcia’s authorities has become increasingly complex and is now headed for the High Court.

Corvera is the first regional airport to be put out to tender since the frenzy to open small airports across Spain began sapping resources and leading – in the case of Castellón and Ciudad Real, to years of disuse – or, in the case in Huesca, Lérida, Salamanca, León, La Rioja, Burgos and Albacete, to crippling losses absorbed by the airport networks. When it opens, it will replace the region’s San Javier airport.

According to estimates from Murcia’s Department of Development and Infrastructure, Corvera will be able to welcome 800,000 foreign tourists in the first four years, pushing total passenger traffic up to 3.5 million a year, a figure which could, in time, rise to 5 million. It will also create 20,000 jobs and raise regional GDP by 3.5 percentage points.

These passenger figures would mean revenue of €495.8 million (€600 million including sales tax) in the first 25 years. A complementary activities zone totalling 600,000 square meters is also on the cards, with profits from it remaining in private hands.

The successful bidder will be able to establish fees and negotiate with airline operators – a freedom which should improve competitiveness in the Alicante, Murcia and Almería regions and allow for more efficient management, according to the authorities.

Meanwhile, the regional government has introduced two conditions to recoup some of the taxpayer money that has been sunk into the project: the successful bidder will pump €0.73 per passenger into state coffers for the first 10 years, €2.09 per passenger in the five years following that, €2.27 in the subsequent five years and €2.56 for the last five years. A total of 10% of income earned by cargo airline companies on cargo weighing more than 50,000 tonnes will also be paid to the region.

There will also be incentives to increase passenger traffic; if there are more than 2.5 million passengers a year, the successful bidder will get a discount of 5%; another 5% discount will be applied if numbers exceed 400,000 in the winter months, or from November to February.

Original story: El País (by Ramón Muñoz)

Edited by: Carmel Drake

Trivago: Hotel Prices 30% Lower In Sept vs. Aug

19 September 2016 – El Economista

According to the tHPI study prepared by trivago.es., hotel prices in Spain are 30% lower in September compared with August, with an average cost per night of €115, whilst the average in Europe amounts to €134.

The most expensive cities to spend the night in a hotel this month are Palma de Mallorca (€176), San Sebastián (€175), Barcelona (€168), Cádiz (€132) and Madrid (€117).

At the other extreme, Lleida, Lugo and Murcia (€60 each), Castellón (€62), Vigo (€67) and Teruel (€68) are the cheapest cities.

The Spanish destinations that have experienced the highest increases in average prices over the last year are: Mojácar, Roquetas de Mar, Zahara de los Atunes, Oropesa del Mar and Almuñecar, where prices have risen by 54.9%, 54.8%, 52.9%, 52.6% and 51.5%, respectively.

By autonomous region, the most expensive places to spend the night in September are the Balearic Islands and Cataluña, which cost €167 and €138 on average, respectively. At the opposite end of the spectrum, the cheapest regions are Galicia (€71), Murcia and Asturias (€73) and Aragón (€74). (…).

Original story: El Economista

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

Brexit May Shatter British Dream Of A Home In Spanish Sun

6 July 2016 – Bloomberg

Londoner Joanne Connor may sell her holiday home in southern Spain as a falling currency drives up the cost in pounds of her household bills and mortgage payments following the U.K.’s decision to leave the European Union.

“The cost of living in Spain has shot up for us overnight,” the 39-year-old mother of two from London said in a phone interview. “If the pound stays this low or continues to drop, we will end up having to sell.”

Sales in some coastal areas of Spain could tumble by as much as 20% in the next 18 months as a sliding pound erodes the spending power of British buyers and owners following the vote to leave the EU, according to Aura Real Estate Experts, an independent advisory firm focused on Spanish property. Britons make up the largest contingent of overseas home buyers in Spain.

Connor has to change pounds into euros to meet the 400 euros ($445) a month mortgage payments on the two-bedroom home. The 9 percent decline in the pound’s value against the euro since the Brexit vote will limit her visits to Spain to just one this year, compared with six times in previous years.

“It’s not just the mortgage which is now more expensive; it’s the car hire, the utility bills, food,” Connor said.

Foreign and domestic home buying in Spain evaporated when the economy collapsed during the financial crisis, leading to an international bailout of its banks and the worst recession in the country’s democratic history. While overseas buyers have begun to return to the market, prices are still well below their pre-crisis peak.

Connor purchased her Spanish property in 2005 for 120,000 euros and says it may now be worth 75,000 euros, based on the price for which similar properties are selling in the Mazarron Country Club in the southern region of Murcia, where her holiday home is located.

U.K. citizens represented 21% of the 46,090 purchases made by overseas buyers last year, data from Spain’s College of Property Registrars show. Foreign buyers made up 13% of all Spanish house purchases in 2015. In Murcia and Andalusia, Britons account for 54% and 29% of transactions by foreigners respectively, according to the study by Aura Real Estate Experts.

Purchases on hold

“We had 10 would-be buyers and two have put their plans on hold after Brexit,” said Mary Arro, partner at Mia Property Boutique in Alicante, which specializes in real estate deals along the Spanish Costa Blanca. “The concern is sterling — they want to know where the pound goes next.”

In the municipalities of Benitachell in Alicante and Benahavis in Malaga, sales could drop by around 20% and prices decline by around 9% in the next year-and-a-half as Britons sell or up or shun future purchases, according to Aura Real Estate Experts. The firm also identified 15 other towns in Alicante and Almeria where sales are expected to fall as much as 17% over the same period.

Spain attracted the largest number of British tourists in Europe, with 16 million people arriving in 2015, according to data from Euromonitor. In the five months through May, they spent almost 5 billion euros in Spain, 14% more than a year earlier, the Spanish statistics office said on Tuesday. Britons accounted for about a fifth of all spending by foreign tourists.

Dario Fernandez Palacios, an agent a Marbella-based real estate broker Prime Invest, said home sales to British buyers had already slowed “noticeably” in the months leading up to the U.K. referendum on June 23. “Now they are totally paralyzed,” he said by phone.

“The coming months, and probably years, are expected to be marred by uncertainty in and outside the U.K.,” said Wouter Geerts, a travel analyst at Euromonitor International.

Original story: Bloomberg (by Sharon R. Smyth and María Tadeo)

Edited by: Carmel Drake

Phoenix Buys Hotel Intercontinental In Torre Pacheco

18 January 2016 – La Opinión de Murcia

A Chilean group has acquired the five-star Hotel Intercontinental La Torre from Polaris World, the property developer from Balsicas, which filed for liquidation following the suspension of payments that ended with the transfer of the majority of the homes that it had constructed in urbanisations in Murcia to Sareb.

The new owner of the property, considered the jewel in the crown of the company created by Pedro García Meroño and Facundo Armero, is the company Phoenix, which already owns a luxury resort in Marbella called La Quinta. The so-called bad bank is also negotiating sales operations with a Spanish chain, which, if they materialise, may result in the sale of other assets by the property developer.

The Chilean group Phoenix is a business conglomerate backed by family capital, headquartered in Santiago de Chile. It holds investments in the real estate, tourism, renewable energy and finance sectors. One of its most high profile projects is Haciendas Talinay, a megaproject involving real estate and tourism developments located to the north of Santiago, in the IV Region of Chile, covering a surface area of 25,000 hectares, along 23 km of the Pacific Ocean coast.

Besides the Hotel Intercontinental La Torre, the Chilean group has acquired a retail centre containing a number of restaurants.

Polaris had constructed another five star hotel in Torre Pacheco called Intercontinental Mar Menor, which has 64 rooms.

The majority of Polaris’s urbanisations that have golf courses were transferred to the company IRM, which was constituted by the banks that had financed the company’s expansion until the burst of the real estate bubble halted its plans in their tracks….However, most of Polaris’s assets ended up in the hands of Sareb, which is now negotiating other operations. Sareb’s President, Jaime Echegoyen, declared in Murcia last May that he expected to see options to sell homes constructed by the property developer from Balsicas “in a piecemeal fashion”. (…).

The purchase of the Hotel Intercontinental, which has been closed to the public since 2013, is considered as an example of the interest that investor groups and tour operators have in Murcia. It is hoped that the operation will represent a new start for the region, which has endured severe economic hardship in recent years, since the crisis put a stop to the ambitious tourism projects of the boom years (…). CAM and Banco de Valencia both become major creditors of Polaris World, which ended up transferring the hole caused by debts with Polaris, which reportedly amounted to around €900 million, to Bankia.

Meanwhile, legal investigations that are being undertaken, following the collapse of CAM and Bancaja, have identified irregularities in terms of the granting of loans to the company from Balsicas.

Original story: La Opinión de Murcia

Translation: Carmel Drake

Britons Buy Homes In Spain, Driven By Strong Pound

5 March 2015 – El Economista

The strength of the British pound makes (house) purchases in Spain more affordable.

Low returns on deposits (at home) encourages Britons to seek alternative investments.

Sun, financial repression and low prices. This perfect cocktail is converting Britons into the main buyers of homes in Spain, especially in areas near the beach. That is because, in addition to the traditional appeal of the coast, Britons are now facing poor returns on their savings at home, due to measures taken by the Bank of England, and because they expect to see a recovery in the real estate sector in Spain. The appreciation of the pound against the euro makes the investment even more affordable for the average Brit, who is also seeing prices in his own country year on year.

An example is Londoner Barry Leverington, who thinks that his money is better off in a Spanish home than it would be earning next to nothing in a British savings account. The bank employee, aged 33 years old, is looking at properties in the Mazarrón Country Club, in Murcia, where two-bedroom villas cost as little as €75,000.

“Anyone who has some capital can buy in Spain, with almost no mortgage, and there is potential for prices to rise”, explains Mr Leverington in a telephone interview. “I grouped together some savings, and with the current low interest rates, I realised they were dormant, not doing anything”.

Foreigners return to Spain

Mr Leverington is not the only one. Foreigner buyers are returning to the Spanish real estate market, attracted by economic growth that exceeds the rates in most of the rest of Europe and by the signs that prices are bottoming out after years of decreases. In fact, sales of homes to foreigners accounted for 13.9% of total sales in the fourth quarter of 2014, a new record.

Britons are the biggest foreign investors, because the zero interest rates on savings accounts (at home) and the prospects for rising house prices in Spain mean that keeping their money in their own country is a much less attractive option.

In total, foreigners invested €6,050 million in Spanish properties during the first nine months of last year, 30% more than during the same period in 2013, according to data from the Ministry of Development. The 40,338 homes purchased represented an increase of 27% with respect to the same period a year before, with Valencia, Andalucía and Cataluña topping the list as the favourite destinations for foreign purchasers.

Interest from overseas investors is increasing after many left scarred, following the collapse of the Spanish real estate market with the onset of the global financial crisis and the burst of the local property bubble. The legacy from this collapse is a stock of more than 1 million homes, many of them in the South and East of the country, in areas very popular with Britons and Europeans.

House prices have also suffered a corresponding crash, having fallen by 42% since their peak in 2007, although in coastal areas, some properties have lost up to 50% of their value, according to estimates from the property appraiser, Tinsa. Nevertheless, it seems that the trend has changed, as the rate of decrease slowed from 9% in 2013 to 3% last year.

Deposits with no returns

The Bank of England has maintained interest rates at a historical low of 0.5% since 2009, which has impacted the interest rates offered by banks on British savings. A financial repression, which is making Britons look for alternatives for their savings, and from there Spanish property looks like a good option.

In addition, it is becoming increasingly expensive to invest in homes in the United Kingdom, where prices increased by 25% between December 2007 and December 2014, according to the Office for National Statistics, led by London, where prices increased by 18% last year alone.

Moreover, the recent increase in the value of the pound against the euro, which has appreciated by 13.5% in the last 12 months, means that homes in Spain are even cheaper for the Brits. This is an important effect to consider, according to the real estate expert José Luis Ruiz Bartolomé, “when something is gifted, it is even more attractive than when you purchase it with a strong currency”.

“People like me want to achieve some kind of return on their savings and they won’t get very far in the real estate market in the UK at the moment”, says Mr Leverington. “Properties in Spain are currently under-valued. It is a win-win situation for everyone”.

Spaniards are also returning to the market, although at a slower rate. The purchase of homes by Spaniards increased slightly by 2.2% in 2014 to reach 319,389 properties, the first increase since 2010, according to date from INE. A ray of light for the sector, although it is still a long way from the highs of 2006, when 955,186 homes changed hands.

Marbella, at its peak

Another symptom of the improvement is that despite the (housing) stock, cranes have reappeared in some areas of major cities and on the coast. Darío Fernández, from the consultancy Jones Lang LaSalle, explains that “we are seeing demand for primary residences from Spaniards in Madrid and Barcelona, and demand for second homes from foreigners in coastal regions. People are confident that the economic risks have disappeared, and see that prices are still very low”.

In fact, in some areas, such as Marbella, demand is so high that international funds are partnering up with local players to buy land and build new homes, adds Fernández. Currently, there are 400 homes under construction in the Malagan town, the highest number in the last six years.

Mr Leverington, the London bank employee, is going to travel to Murcia in June to get to know the area, and if he finds a property he likes, he will buy it. “I have already spoken to some estate agents, I don’t want to wait much longer, because as soon as there is any good news, the market will recover and I don’t want to miss out”.

Original story: El Economista

Translation: Carmel Drake

Housing: Rental Prices Increase By 2.6% In 2014

21 January 2015 – El País

Barcelona is the most expensive regional capital in Spain and Lugo is the most economical.

House rental prices in Spain closed the year (2014) with a slight increase of 2.6%, to reach €7 per square metre per month. During the last quarter of the year, prices continued to rise, up by 0.2%.

“The data shows a stable outlook for the rental market, which although is now recovering, is not showing any signs of a sudden increase in prices. In any case, as with the market for house sales, we have to recognise that the rental market has two speeds. Thus, the increases recorded in markets such as Madrid, Barcelona, tourist areas and specific areas of the País Vasco have sparked interest from investors towards these regions, however this has been at the detriment of other less profitable areas”, says Fernando Encinar of idealista.com.

By autonomous region, the greatest increase was recorded in Cataluña, where landlords are now charging 9.8% more to let their properties than a year ago. It is followed by the regions of Extremadura (3.9%) and the Balearic Islands (2.4%).

By contrast, Murcia and Galicia have experienced price reductions of around 4% and 3%, respectively.

Madrid continues to be the most expensive autonomous region, at €10.20 per square metre. It is followed closely by the País Vasco (€10.00/m2) and Cataluña (€9.20/m2).

Barcelona consolidated its position as the most expensive regional capital in Spain, with an average price increase of 11% to take it to €12.50 per square metre; it is followed by San Sebastián (€11.80/m2) and Madrid (€11.40/m2). At the opposite end of the table, we find Ourense and Lugo, as the cheapest regional capitals, with an average price of around €4.10/m2 in both cities.

Notably, Jaén was the regional capital that saw the highest increase in rental prices in 2014, which grew by 10.4%.

Original story: El País (by Paula Cossío)

Translation: Carmel Drake