Reply To: More Bad news for Spanish Property!


Hi mg – no insult taken – no I am not personally experienced as I have never bought such volume. In my line of work I have had several developments or part of all fully legal, all licenses in place urgently given to me from developers or thei banks all desperate to sell, exclusivity given for a few weeks but has to go wuickly, usually before the next mortgage payment due.

The pressure they exert is tremendous, calls and visits every few hours!

I have access to large funds, not just pension funds, worldwide via intermediaries I know and work with. also clients in various banking institutions shall we say with access to large sums of money. I send them the info and they have been to see, BUT unless some form of yield can be shown, they are not interested – on the basis that the prices will drop further and when the bank is squealing, they will pick it up from there.

After the info is sent, a report will be undertaken, its not enought o just have licenses in place – after all the reason for the purchase is to make money somewhere down the line, so where does it come from?

As an example I have a development above a 5 star hotel. 164 units keyready and 62% of the bank valuation. It came on in november. December a rep came over and we went to eh site. A full detailed report was made – they were looking at using it as an aparthotel. Unfortunately the numbers didnt stack up and they declined the deal.

I have one in Banus 45% discounted, top end luxury. 61 units – no takers either and Ive had that one for a few months.

And before yu say it must be me – others are now trying to sell them to all areas of the world – no joy.

Reason being is there is no yeild, therefore whats the point – when do you try and get your money back, how do you earn?

Not for nothing have the banks stopped bankrolling developers.

Hence my post.