Baraka Invests €60M in the Construction of 2 Skyscrapers in Torrevieja

21 January 2019 – Idealista

Trinitario Casanova is on a roll with Baraka. Baraka Properties, the group’s arm specialising property development, has invested €60 million in the construction of two skyscrapers in Torrevieja, which will house more than 130 homes and 250 tourist apartments, according to explanations provided by the company to Idealista News.

The project is going to materialise into two 26-storey towers. Whilst the first will be dedicated to housing in its entirety, the second will be dedicated to hotel use. “Right now, the approval of the project is in the evaluation phase, although our plans are to finalise this first phase during the first quarter of the year”, explain sources at the group, “and once the project has been approved, we will request the licence”.

The land on which the two towers are going to be built is located on Avenida Doctor Gregorio Marañon, on the seafront next to the Doña Sinforosa park. “It is 200 metre from the marina, and all of the homes from the first floor up will have views of the sea. The homes from the fifth floor up will have 360º views”, say sources at Baraka Properties.

According to the company, these will be the first towers in the city, and the tallest to date. The other enclave with towers of this calibre is Benidorm. “The trend for tourists in the area is to look for more unique properties, with higher quality finishes, where they can be offered services like in an American condominium, and this plot fulfils all of those characteristics, both due to its location, and its scale/volume”, they conclude.

In total, 32,000 m2 of space is going to be built in the two towers, and by way of reference, the price per m2 of the penthouse will amount to around €7,000/m2, making it one of the most expensive developments in the area (…).

Original story: Idealista (by Custodio Pareja & P. Martínez-Almeida)

Translation: Carmel Drake

Santander, Popular & BBVA Transfer Land For 3,700 Homes To Metrovacesa

11 September 2017 – Levante EMV

Santander, Popular and BBVA have transferred land to Metrovacesa for the construction of 3,700 homes in the Community of Valencia. According to real estate sources, the three banks have contributed more than 440,000 m2 of buildable land in some of the best development areas of Valencia and Alicante. The operation includes plots for the construction of hundreds of homes and a retail space in La Patacona.

As a result, Metrovacesa has become the largest real estate company in the Community of Valencia. If we add these latest plots from the banking institutions to Metrovacesa’s previous portfolio, the company now has 660,000 m2 of buildable land for the construction of 5,700 homes.

The land transfer forms part of Project Horizonte, which has seen Santander, Popular and BBVA (all shareholders of the real estate company) contribute land worth €1,108 million to Metrovacesa for the construction of 40,000 homes across the whole of Spain. Santander (which has recently absorbed Popular) and BBVA relaunched Metrovacesa as a platform to provide an outlet for their land portfolios. The banks are looking to make a profit from the rising economic cycle in the construction sector.

Sources close to the operation specified that the most significant plots of land are located in Benimaclet, Moreras and Patraix (Valencia); the development area of La Patacona (the urban plan for Bodegas Vinival in Alboraia); Benalúa Sur and Albufereta (Alicante); Nou Nazareth (Sant Joan d’Alacant); El Acequión (Torrevieja); several plots in Castelló and Sagunt; and buildable land on the seafront in El Puig (…).

Restructuring

With Project Horizonte, BBVA and Santander have concluded the restructuring of Metrovacesa, which they were forced to take over during the crisis, when at the end of 2008, they foreclosed the debt of the Sanahuja family, which was the majority shareholder of the entity at the time.

By virtue of Project Horizonte, the entity chaired by Ana Botín has decreased its stake in Metrovacesa to 61.3%, from the 70.3% that it held until now. Nevertheless, its stake really amounts to 70.5% if we include the 9.2% owned by Banco Popular. Meanwhile, BBVA has increased its stake in the real estate company from 20.5% to 29%. These variations are a result of the various land contributions made by each one of the shareholder entities, which have materialised through a capital increase.

Original story: Levante EMV (by Ramón Ferrando)

Translation: Carmel Drake