May 14, 2008 at 11:27 am #53943
I am not sure if this has been mentioned:
“Spanish developer San Jose Inversiones went into voluntary administration late last week, filing for protection against its creditors in an Alicante court as the slowdown in the Spanish property sector continues to take its toll on the industry.
It is believed that despite having assets to the value of €300million, it was recently unable to meet repayments to its creditors of around €30million.
San Jose Inversiones applied for ‘concurso de acreedores voluntario’ or voluntary administration which allows companies in Spain a period of time to try and renegotiate the terms of its debt with its creditors. If a company fails to do this then it will eventually end up in liquidation.
The developer has built thousands of properties across Murcia and the Costa Blanca which it has sold to foreign buyers including the Jumilla Golf & Country Club, Playa Golf in Le Dehesa de Campoamor, Alberta Golf and Dolres Golf.”
According to the OPP magazine
May 15, 2008 at 8:12 am #82504
San Jose are a big player in my area and have been for years. I think their problem along with many other builders is that most of their assets are land and at the moment nobody wants to buy it from them. I know a builder who is sitting on more than 20 million square metres of land and cant develop any of it because there are no buyers. The other problem is a lot of this land was bought at the height of the boom and top prices were paid. Now there is no chance to sell it again at the same price or more.
Only those with very big pockets can hold on to the land for a few years and hope it returns to the price they paid for it, or maybe it never will.
May 16, 2008 at 9:00 am #82584
i have just taken this from an email from the eyeonspain website. Its for any buyers with San Jose about a meeting with a lawyer where they will try and arrange a group action against Sane Jose as it appears not everyone had a bank guarantee etc. If you need any more help I would suggest you look at thr thread on the EyeonSpain site.
EYEONSPAIN: They have agreed to hold a meeting next week to explain to people what the situation is, what the options are and what action they propose.
They explained that there are essentially three groups of people here:
1. Those with bank guarantees should be ok
2. Those with no bank guarantee but did use a lawyer (can possibly sue lawyer)
3. Those with no bank guarantee and no lawyer
They have set a provisional date for a meeting in their offices in Birmingham on Wednesday 21 May 2008. They need to know how many people would be interested/ are able to attend.
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