Belgian-based Arrabal Investments is bidding to buy the landmark Hotel Incosol in Marbella, with plans to demolish the facility and build a residential and retail complex.
The Incosol has been closed since 2012 and is in the control of creditors and a bankruptcy court, according to the Sur newspaper.
Arrabal has offered €15.5 million for the property, which they argue is in tear-down condition. More than €40 million will be needed to refurbish the property, a well-known fixture in Marbella.
“Virtually all of the terraces are in dangerous condition because the rotten iron has been extended to the concrete core,” the company says in a court filing.
But the current owners say the offer is far too low. They place the value at closer to €59 million and have urged the bankruptcy judge to reject the offer.
The Belgian group’s proposal would be “highly detrimental to the interests of the insolvency and creditors,” the owners’ lawyers argue. They blame the deterioration of the structure on receivers, who they charge with not properly maintaining the facility in the wake of the bankruptcy.
Arrabal offered few details for its plan for the site, which was used as a luxury hotel and spa. In its filings, the company said it wants to “develop a residential project in which the ability to live comfortably with hotel space, great options, health center, market and commercial rehabilitation units and combine spa spaces,” Sur reports.
It will be up to the bankruptcy judge to decide the fate of the offer. But the deal is further complicated by legal issues surrounding the acquisition and local zoning, Sur notes.
SPI Member Comments