Undaunted by Spain’s property crash, Asturion Foundation, a Lichtenstein-based company linked to the Saudi royal family, has signed an agreement with David Valadez, the new Socialist mayor of Estepona (the former mayor is in jail), to build a luxury development of close to 1,500 properties on 590,000m2 of land in the municipality, to the west of Marbella, on the Costa del Sol.
In return, Estepona’s town hall will get close to 50,000m2 of land for building social housing, and 8 million Euros for infrastructure projects and buying land.
Valadez expects the building work to start in 2010 and provide employment for 1,000 people over the following years.
The development, which will be built on land bought by Asturion Fondation in 1978, still needs to clear some planning hurdles before construction can begin.
Negotiations between Asturion Foundation and the town hall were held up when former Socialist mayor Antonio Barrientos was arrested on property-related corruption charges in June last year, on the same day that Asturion Fondation paid the town council 1 million Euros.
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