Another building giant crisis hits Costa Blanca

Taken from COSTA BLANCA NEWS    July 18 - 24 2008

More than 1,500 properties in jeopardy in Oliva-Pego

By James Parkes
THE SUSPENSION of payments declared on Monday by Spain’s leading real estate company Martinsa Fadesa has jeopardised the construction of more than 1,500 properties in the northern Costa Blanca.

The announcement came on Monday following a stock value slump triggered by the resignation of its managing director last Tuesday, July 8. On Friday, shares of Martinsa Fadesa plummeted by 33.8 per cent in the Madrid stock exchange followed by a further 24% on Monday.

Pego is the area most affected by the Martinsa Fadesa crisis as the company is the developer of 1,175 homes in the controversial Bellarotja macro-urbanisation, which has spread across the mountains surrounding the Pego-Oliva marshes.

Mayor Carmelo Ortolá assured buyers that the company will finish the first 250 homes included in the first phase of the urbanisation.

According to company sources, the handing over of keys was scheduled for early 2009. However, employees from third companies contracted by the promoter had left the site on Wednesday.

Mayor Ortolá also said that Fadesa has sold 70 % of the land initially purchased for the project. This means that the company only has sufficient land to build between 450 and 500 homes at the most.

It was revealed yesterday (Thursday) that Pego council has speeded-up the bureaucratic procedures for the Bellarotja property title deeds to be signed.

Within the Valencia Region, Martinsa Fadesa has another two developments under construction, one in Alberic and another in Pobla de Vallbona, and in Murcia the company is building a complex in the Mar Menor and Ulea areas.

THOUSANDS AFFECTED

Martinsa Fadesa’s fall directly affects 12,578 families who purchased properties off-plan and have yet to see their homes completed.

Plans for an emergency reduction of staff were presented on Tuesday and affect 26.5 per cent of employees, leaving 234 people jobless.

The company also owns 28.67 million square metres of land, mainly in Spain, for future developments that may never begin.

Both Bancaja and CAM savings banks are also affected by the suspension of payments as they are owed 280 and 100 million euros respectively.

The initial report estimates Martinsa Fadesa’s creditors include 45 banks with which the company has subscribed loans for a joint amount of 4,000 million euros.

José Manuel Galindo, chairman of promoters’ association Asprima says that other cases could follow and insisted on the need for the government to study urgent measures to support the real estate and construction sector.

jparkes@cbnews.es

 Spam post or abuse? Please let us know

Fadesa's fall will impact thousands.  They are / were such a big company.

We'll monitor closely what happens now.

Justin

 Spam post or abuse? Please let us know

Justin:

I think it is important to make an effort so we can have all FAdesa people acting to be " privileged and special" creditors as they have been so much un-considered and abused during the building process  ( i.e.- lack of Bank Guarantees) and are the ultimate and real damaged ( in their personal and family dalily lifes).... not the companies who has been trading succesfully for many years with no care of consumers rights. So the Creditor´s Meeting procedure will play good tools for the protection of consumers.We also think  it is necessary for the spanish legal scenario to find real forces battling for consumers rights in this procedures. 

As we answered to you in that interview you made to Nacho and me, there is gate open to off plan purchasers to attack and  legally grab a particular asset ( the one they were buying or any other equivalent one) for the cashing of the credit so none else but them can have it for the guaranteed cashing of the debt. It is their money which has been ilegally unprotected by the lack of the due guarantees. Time to gaining guarantees now.

It is an important and necessary legal battle for the coming years, which will leave a better consumer oriented legal system in the Spanish real estate market according to European standards.

Best from Zahara,

Maria 


This message was last edited by mariadecastro on 7/21/2008.

 Spam post or abuse? Please let us know

It is time to stop this nonsense of trying to work within a system that is unfair and take a new tack completely. The current situation has been caused by the greed of the Spanish government. They have turned a blind eye to irregularities because they need foreign money to prop up what is essentially a failing economy, low productivity virtually no manufacturing industry to speak of and with the town halls relying on construction for their income. European Governments must now protect their citizens form the institutionalised scam that is Spain. All moneys that have been paid by foreigners and not guaranteed by banks must be underwritten by the Spanish government; after all it is an offence under Spanish law not to provide such guarantees. However it seems that not doing so is no problem as their appears to be no sanctions, nobody goes to prison. So everybody involved needs to contact their MP and pressure him of her to raise the question parliament. To insist that pressure is bought to bear on Spain to ensure British people who have done nothing wrong are protected from losses that are essentially sanctioned by the government.

 Spam post or abuse? Please let us know

Dear Twin:

In my opinion, you are ..... soooo correct. It is shaming and nasty. I do hope we can help a little bit to put things in order. It is time. It is needed. My goodness!

Maria

 Spam post or abuse? Please let us know

EOS team ,Don't just monitor,ACT my taking on board what Twin has said and form a petition on behalf of the forum's members, to be presented to the UK government. .I am sure  you will have no problems compiling a factual dossier as it appears that the majority of  forum members  who write  is because they have encountered devastation fom "Spain"

This petition would  also ( whom I agree with entirely) accommodate "Hall Of Shame " remarks ie name and shame..
By the way EOS your defense against libel is that it is true and in the public interest!

Clio

 Spam post or abuse? Please let us know

And to the Spanish government and  National Council of Lawyers too. We offer our help for the compilation and translation of testimonials.

Best,

Maria

 Spam post or abuse? Please let us know

Hola Maria,
                    Lo siento mucho for leaving out the Spanish government and lawyers and also thank you for your kind offer of help. Now to my story. I would regard myself as in the autumn off my life, having reasonable intelligence, very street-wise and also doing my homework regards buying in Spain.I was not buying to make a quick buck, but more to join in with the spanish way off life and offer my talents to your country. I had started to learn spanish.
Last year  I embarked on an inspection  trip with MRI and fell in love with Terrazas de Almerimar (Proindal), putting a reservation fee of 6000E on an apartment .I was not coerced into this purchase, I wanted this apartment.The signing was carried out by Violette vanherpe of Martinez- Echevarria Abogados, S.L She went through the necessary formalities and informed me that I would not have to sign the purchase contract until she was satisfied with her "DUE DILIGENCE".
Come December I received a summary of the Purchase Contract from her with a deadline to sign.Included in this contract was legal fees  amounting to approx 2800E plus  100Efor searches  at the land registry.
Repeated requests to her  for various confirmations i.e B.G., full contract etc.,were lelt unanswered and in the light of all this I did not sign the contract.
Come January, it turns out to be that Prondial did not own the land on which Terrazas de Almerimar was to be built (madre mia ).
I spent all of 2008 trying to get back my reservation fee which iI finally achieved LESS approx 500E for Violette's fees !!!.
Maria, I was one of the lucky ones, thanks to you and others who write on forums offering advice and kind words, keep up the good work. I cry for the ones who have had their dreams shattered and left penniless by people who are lower than Whales Dung.
The truth, the whole truth and nothing but the truth, so help me God..
Clio

 Spam post or abuse? Please let us know