180 metres tall, with 45 floors and dramatic sea views from most flats, the Intempo residential skyscraper in Benidorm has been taken over by the Sareb – Spain’s so-called bad bank – after a big write-down on the mortgage.
The Sareb has acquired the building from the developer Olga Urbana, owned by José Ignacio de la Serna, for 52 million euros – a 44pc discount compared to the original mortgage loan of 93 million Euros that savings bank Caixa Galicia lent to De la Serna.
Presumably De La Sarena planned to sell the flats in the building to the public for a total price well to the north of 100 million Euros. In which case the Sareb is getting the building for less than half of its original market value, perhaps much less than half.
De La Serna and Olga Urbana still hope to manage the sale of the flats in the building to the public. De La Serna is negotiating the final list prices with the Sareb, according to press reports.
Around 80 of the 269 apartments are reported to have already been sold, many of them off-plan during the boom, so there are doubts about how many of those sales will go through to completion. Many of the original buyers are said to have already pulled out citing long delays in construction to argue breach of contract by the developer for failing to deliver on time.
The new sales plan envisages selling out the development in the next three years, according to press reports. Foreigners are expected to be the main buyers.
Construction problems, and far from in tempo
The delivery of Intempo is way behind schedule, and the architects who designed the building, and did the project management, recently abandoned the project in a spat with the developer.
The developer says the building is 92pc finished, whilst the project managers say it is only 83pc done.
Assuming he is right, and he claims to have the town hall on his side, De La Serna hopes to finish building works in the next couple of months, and start completing sales in December.
Talks have been held with Russian investors interested in the snapping up the whole building, say press reports.