Tag: residential block

Kronos Forces the Auction of Salvador Vila’s Star Plot in Valencia Worth €67M

20 February 2019 – Expansión

The court has approved the execution requested by the fund (Kronos), which purchased the debt associated with the plots on Avenida de las Cortes Valencianas, opposite the former Hilton hotel, from Sareb and is claiming €47 million from the Valencian property developer (Salvador Vila).

One of the last undeveloped plots on Avenida de las Cortes Valencianas has just gone to judicial auction. It is the plot of land located opposite the Hotel Meliá Valencia (formerly the Hilton), where the plan was to build a 114-metre tall tower containing homes. It was set to be a genuine icon but was never constructed because of the real estate crisis.

The land still belongs to one of the large Valencian property developers, Salvador Vila Soria, who also constructed several of the large towers located on the same avenue. Nevertheless, a change of hands appears imminent, given that the Court of First Instance number 27 of Valencia has approved the mortgage auction of the property at the request of Vistanova Developments, a company linked to the manager Kronos, which through Kronos Homes is one of the new large operators in the residential market.

Kronos acquired the debt that Salvador Vila held with Sareb and which included the mortgage secured by this land as collateral. In fact, the Managing Director of Kronos, Saïd Hejal, explained to Expansión in May his firm’s intention of starting construction on a 34-storey residential tower this year, which was going to be the tallest in Valencia, after taking over the debt from Sareb.

The legal auction officially started on 8 February and the period to submit bids ends at the beginning of March. According to the court, the debt claimed from Salvador Vila in the mortgage foreclosure lawsuit amounts to €47.62 million, of which €40 million proceeds from the principal and the rest from interest.

The value of the property for the auction is set at €67 million. The plot spans 6,926 m2 and has a buildability of 20,900 m2 (residential use) and another 3,100 m2 for tertiary use (…).

Original story: Expansión (by A.C.A.)

Translation: Carmel Drake

Núñez i Navarro Invests €45M To Build 166 New Homes

3 May 2017 – Expansión

Núñez I Navarro (NiN) has started its largest real estate development since before the crisis. The development in question is known as the Nou Can Gambús urbanisation, close to Sabadell (Barcelona), and its first phase has a surface area of 23,336 m2. The company is planning to construct 66 family homes and four residential blocks containing 100 flats in total.

During this first phase, the company will spend €45 million, excluding the price of the plots of land. The company, which is owned by the family of FC Barcelona’s former president, Josep Lluís Núñez, acquired the estate years ago in a deal completed in equal part with Anova. During the recession, the property developer took ownership of 100% of the site.

Several months ago, NiN completed the construction of the first row of homes, comprising eight houses, and it has already agreed their sale or rental. Now, NiN has started to build the second row of houses, comprising 16 units in total. The deadline for their completion is the second quarter 2018. The property developer expects to begin construction of the first two residential blocks around that date.

Low level of debt

NiN is one of the largest Catalan property developers and also one of the entities that is best avoiding the economic crisis thanks to its very restrictive indebtedness policy, with debt amounting to zero in the case of some of its developments. The property developer has strengthened its refurbishment business, although it has not stopped building at any time.

The main business of the family company is the real estate sector, comprising homes, commercial premises, warehouses and offices. Its area of influence is Barcelona, although its presence extends across the whole of Cataluña. It also has some parking and hotel businesses.

The market for new homes in the autonomous region is recovering, although more slowly than the sector had expected. The Association of Property Developers of Cataluña (APCE) states that last year construction of 8,313 homes was started. That figure represents a 34% increase compared to 2015 but is 18% lower than the 10,000 new homes that were planned.

Original story: Expansión (Gabriel Trindade)

Translation: Carmel Drake