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Grupo Jale – developer of Duquesa Fairways – in financial difficulty.
The builder Jale Construcciones, part of Grupo Jale, has filed for protection from creditors, citing market difficulties and a lack of new credit. Grupo Jale has many developments on Spain’s southern coasts, for example Duquesa Fairways in Manilva on the Costa del Sol.
Buyers on developments where the promoter goes bust before finishing the job are going to have serious problems. The developer Llanera went under last year. There is going to be plenty more examples of developers going under in the months to come.
If anyone hears of developers with liquidity problems, or other financial difficulties please post here.
Mark
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Looks like Habitat – the biggest developer in Catalonia – has avoided insolvency by the skin of its teeth. A consortium of banks, including Barclays and Deutsche Bank, appear to have agreed new terms for Habitat’s 1.6 billion Euros of syndicated debt, letting Habitat off capital repayments until 2010. Barclays resisted agreement until the 11th hour, but I hear they will sign up lunchtime today. There has been a lot of political pressure from the Spanish government and the Catalan government (Generalitat) on the banks to do a deal. The last thing the government wants is one of Spain’s biggest developers to go bust just before a general election. Smaller developers won’t get the same help. I hope the stock markets punish banks like Barclays and DB for being such fools with their shareholders’ money.
Mark
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There has been a lot of political pressure from the Spanish government and the Catalan government (Generalitat) on the banks to do a deal. The last thing the government wants is one of Spain’s biggest developers to go bust just before a general election. Smaller developers won’t get the same help. I hope the stock markets punish banks like Barclays and DB for being such fools with their shareholders’ money.
I just knew this was going to happen. The PP, the opposition party, is keeping very quiet about this sort of thing, demolitions etc , there is tremendous political capital for them. But they keep mum say the economy is in a mess and leave it at that. Think the PP would n´t mind losing this election as the chickens will really come home to roost when the election is over, the mess will probably take the life of the next parliament to sort out, the PP will be swept to pwer with a landslide majority and the cobblers party will be in the wilderness for 15 years, similar pattern to the Tories in the UK many voters still reluctant to vote for them as they still remember Black Wednesday which was 15 years ago.
I fear the effluent will really hit the airconditioning when the election is over on March 9th.
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Just been looking at the prices on the Ibex 35, Inmobliaria Colonial which I think has already fallen 90% from its peak ,fell 14% today there was a hope that an overseas buyer would take the company over because the shares had been rallying for the past 10 days or so but have been weak again over the past few days . It looks as if some bad news could be just around the corner with this latest fall.
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