Spanish developer Fadesa struggling to avoid administration

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This topic contains 19 replies, has 10 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 4 months ago.

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  • #54169
    Profile photo of Anonymous
    Anonymous
    Participant

    Now it’s Fadesa’s turn. Be interesting to see if they scrape through. With an office in London, and a big marketing push in the UK back in the fat years, they must have sold to quite a few British buyers.

    http://www.spanishpropertyinsight.com/buff/?p=165

    Mark

  • #85197
    Profile photo of Anonymous
    Anonymous
    Participant

    I, understand that:

    The ICO (Official Credit Office) has declined Fadesa’s bid for a € 150 MM loan for it’s developments in Eastern Europe. That is the pretext but in reality it’s for refinancing it’s debt and the ICO know only too well.

  • #85203
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    Anonymous
    Participant

    The company is suspended today at the stock market after falling about 20% in the early hours this morning.

    http://elmundo.es/mundodinero/2008/07/14/economia/1216016190.html

    The company is facing bankrupt and the debt of this company with some spanish banks is really huge:

    Caja Madrid: 1000 million euros.
    La Caixa: 1000 million euros.
    Banco Popular: 400 million euro.

    But there are around 43 banks more….

    If the company goes bankrupt we are going to be in another critical step of this crisis.

  • #85205
    Profile photo of mike
    mike
    Participant

    @peterparra wrote:

    But there are around 43 banks more….

    If the company goes bankrupt we are going to be in another critical step of this crisis.

    Financial armageddon

  • #85211
    Profile photo of Anonymous
    Anonymous
    Participant

    From yesterday’s Mail On Sunday – Letters to Tony Hetherington:

    Failed Spanish deal has cost me £75,000

    J. F. writes: In February 2003, we paid a deposit on a Spanish property being developed by a company there called Fadesa. There were phased payments for the balance, with completion expected early in 2005.

    Since then we have had no contact from Fadesa despite chasing it for a completion date. So last November I cancelled the contract and was promised a refund within six weeks. When I chased this in January I was told I had to go to Spain to sign the cancellation, which I did on January 29. The cancellation agreement provided for a refund four weeks later, but I have phoned 12 times and just get excuses and delays. I still have no refund of my 94,000 euros (£75,000). I feel people should be made aware of Fadesa’s practices.

    Answer

    Fadesa is a Spanish company with a subsidiary in London called Fadesa UK Limited, so I contacted this as well as the head office in Spain. The Spanish company offered absolutely no comment, explanation or excuse for failing either to complete the development or to refund your money.

    In London, one member of staff said: ‘We sent your enquiry to our head office to see if they would reply, but they didn’t have any. We cannot tell you anything if they do not give the go-ahead.’

    Fadesa UK Limited is, by the way, almost a year in arrears with filing its accounts with Companies House. This is illegal and so it would not surprise me if the company was eventually struck off. One suggestion from Spain is that Fadesa was caught up in the huge scandal over developments that had no proper planning permission. Whatever the explanation, you and other buyers clearly need to get together and instruct a Spanish lawyer to sue. Other customers of this company should learn from your experience.

    http://www.thisismoney.co.uk/news/columnists/article.html?in_article_id=447218&in_page_id=19&in_author_id=5

  • #85212
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    Anonymous
    Participant

    What, I read does not surprise me. Which development is it ?

    I, notice the lack of defence by the agents of Fadesa on the forums as their commission dries out.

  • #85232
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    Anonymous
    Participant

    FADESA has declared itself this night in bankruptcy.

    http://www.elpais.com/articulo/economia/Martinsa-Fadesa/anuncia/mayor/suspension/pagos/historia/Espana/elpepueco/20080714elpepueco_4/Tes

    This mean the mayor bankupt in the history of Spain. Tomorrow is going to be a terrible day at the stock market and the economy in general.

  • #85233
    Profile photo of Anonymous
    Anonymous
    Participant
  • #85236
    Profile photo of Anonymous
    Anonymous
    Participant
  • #85238
    Profile photo of Anonymous
    Anonymous
    Participant

    As recently as the end of March, a website was still turning out PR blurb for a new project of theirs in Bulgaria (link below).

    “The first-sod ceremony of the Modera Residence residential complex took place on March 18”

    – despite Martinsa Fadesa knowing trouble was looming.

    http://www.propertywisebulgaria.com/article/spanish-developer-martinsa-fadesa-starts-construction-of-first-bulgarian-project/id_2836/catid_25

  • #85248
    Profile photo of Anonymous
    Anonymous
    Participant
  • #85249
    Profile photo of katy
    katy
    Spectator

    Yes peter, in practice it all sounds very easy but we all know in theory what happens…some more work for the Lawyers. The people who have already completed (most of whom are without electric) will be living on a half completed site for years to come.

  • #85334
    Profile photo of katy
    katy
    Spectator

    I have seen a few posts concerning the Fadesa development in Costa Esuri from Lawyers on Fora this week. One was obviously farming for business (probably the other too!). The first Lawyer said anyone who had paid deposits to get in touch with him to find out the situation! His post was followed by a client of this Lawyer who said he had been e-mailing the said Lawyer all week and hadn’t received a reply

    The second Lawyer (one of our old posters!) said that Fadesa had been in touch and were still in control( 🙄 ) and could negotiate a discount for purchasers. Not sure what that was about but it sounds contrary to all I have read!

    I know some of you on here have excellent Lawyers but there are certainly some Mavericks out there!

  • #85340
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    Anonymous
    Participant

    Martinsa-Fadesa announced again yesterday that it will complete the properties which have seen payments by clients. They say they’ll complete and hand over the keys for 12,578 properties which are pending and for which families have already made payments. These properties have an estimated value of 2 billion €.

    A statement from the company yesterday said they deeply regretted the current uncertainty, and promised to work intensely to overcome this ‘transitory situation’ in the shortest time possible.

    The company has also announced a halt to its building activities in Morocco.

    A new telephone information line has been established by the company – 900 380 900.

  • #85343
    Profile photo of katy
    katy
    Spectator

    I predict when/if the truth comes out that Fadesa debts will be much higher than the figure given and the asset value much lower. Already many conflicting reports in the Spanish media.

    The Apartments just completed in Calahonda are only 20% sold and what value half-completed unsold units in Bansko, Bulgaria! Everything will have been written-up for the bank loans.

  • #85373
    Profile photo of Anonymous
    Anonymous
    Participant

    Very interesting article about MARTINSA-FADESA:

    http://www.elpais.com/articulo/semana/Martin/suelo/pies/elpepueco/20080720elpneglse_2/Tes

    In it we can read the lies of Zapatero…

  • #85434
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    Anonymous
    Participant

    billions of euro’s of cash is owed by developers who were living in la la land for the last 5 years. unbelievable how the greed of man is blind to common sense. We all knew that the market was overheated and that the property prices were getting higher than even the UK. But still they kept building. The banks were mad to finance the fools as blindly as they did, but who has any sympathy for the banks? Let them take a bloody nose for their incompetence. Of course I have sympathy with the individuals that lost their deposits – it’s just a shame that the spanish legal system doesn’t sympathise with them.

    Now there are some 2 million surplus properties and they have wrecked the beauty of large tracts of their country.

  • #85573
    Profile photo of Anonymous
    Anonymous
    Participant

    Probably covered by most of the other links and comments but a link to the story in Costa Blanca News http://www.costablanca-news.com/news/last.htm

  • #85576
    Profile photo of Anonymous
    Anonymous
    Participant

    “Two things are infinite: the universe and human stupidity. But I’m not sure about the the universe.”

    Albert Einstein

  • #85598
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    Anonymous
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