The Spanish developer Tremon (Grupo Tremón) has been forced to seek protection from its creditors as it struggles under the weight of 900 million Euros in debt. Tremon is the second largest Spanish developer to fail in the Spanish property market crash after the collapse of Martinsa-Fadesa.
Tremon expanded rapidly on the back of Spain’s recent property boom, and even made a failed attempt to float 35% of the company on the Madrid Stock Exchange in the middle of 2007. It’s rapid expansion at the height of Spain’s property boom meant that Tremon paid more for its land bank than other, longer-established developers, and financed its expansion with debt. Now that property sales have dried up, Tremon has a cash flow problem, and is unable to meet its financial obligations.
Like many other Spanish developers, Tremon also had ambitious international expansion plans, which had to be financed by borrowing. Just like most other Spanish developers with expansion plans, Tremon started building in Poland, Hungary, The Czech Republic, and Morocco. That’s the problem with Spanish developers – they all do exactly the same thing at exactly the same time.
Tremon businesses include hotels, office buildings, and car parks, but the company also has residential developments, like El Mirador de la Duquesa, on the Costa del Sol in Malaga province, that have been sold to foreign clients.
Anyone who has bought off-plan from Tremon, and still has no home to show for their stage payments, should contact a good lawyer immediately.