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Spain’s “Faulty Towers” for sale at €26M – 11 lifts and bank debt included

InTempo Tower, Europe’s highest residential skyscraper is up for sale for €26 million in a double your money deal that includes 269 apartments, lock, stock and 11 elevators.

The golden twin towers of Edificio InTempo soar 180 metres (590 feet) above Benidorm Bay on Spain’s Costa Blanca, but the development company remains grounded as a victim of the recession and its loan status with the funding bank.

Social media buzzed when a local newspaper reported that design changes meant there were no lifts to apartments on the 31 floors above level 21 and jibes of “Faulty Towers” followed, Developer Rafael Ballesta Alcaraz denied this, describing the claim as “ridiculous”.

Today he confirmed there were four high speed lifts in each of the Intempo twin towers and a further three serving duplex penthouses in a “floating” cone linking the towers. They have been supplied by international specialists, Krone, and provide a rapid transit in the towers.

And in a surprise move, the developer company announced it would be prepared to sell out for a “non negotiable” €26 million ($35.7 million). This price includes all rights to the InTempo near completed site and all payments to partners, shareholders and clients. It also covers the cost of completing the remaining 6% of the construction work.

Buyers of the bayside condominium would have a fully completed project with a developed value of €116,000,000 ($159,000,000), even allowing for a 30% discount on the current asking prices on apartments and penthouses. This would be enough to settle the outstanding bank debt and produce a return of €26 million, according to figures seen by sales brokers,

Walker Property Spain who are handling the sale of the InTempo twin towers project. Said spokesman, Terry Walker: “This is a potential double your money deal and the buyer would own a prestige piece of real estate for just €26 million – around 20% of the developed value – with the same amount in profits from the sale of the apartments. “I understand the bank will negotiate further on a debt that has already been heavily discounted in its assets register.”

[infobox] InTempo statistics

  • 269 apartments of 1,2 and 3-beds
  • €3M for duplex penthouses
  • 20% apts pre-sold at average €300,000 from 2012 price list
  • Waitlist of 100s more buyers from around the world
  • 1,000 residents enjoy leisure on 4 floors includes lounges, gyms
  • Location Avenida de Mexico,7 Benidorm, Alicante, Spain
  • Site 12,879.39 sq metres
  • Tower plot 6,422 sq metres
  • Apartments build 36,223 sq metres
  • Penthouses cone is 8 levels deep
  • Olympic size (almost) pool for use of residents and guests
  • 3 months to completion
  • €3M bill to completion

[/infobox]

InTempo was launched in 2007, the peak year before Spain’s property bubble, which imploded the following year with devastating economic consequences on Europe’s favourite holiday destination. The skyscraper’s construction has been hit by planning changes and disputes with the builders who are demanding a million euros ($1.3M) in unpaid bills from the developers.

50 apartments were sold in the short period when the tower was marketed as buyers around the world were attracted by the luxury high life style and prospects of premium rentals in Spain’s best-known holiday resort. The loan that financed construction was transferred in 2012 to Spain’s “bad bank”, Sareb, set up to pool the financial industry’s toxic assets as part of a European Union-financed banking sector rescue for Spain.

Sareb executives are expected to negotiate the loan settlement with the new owners.

Author: Kevin Barnett, Walker Property Spain

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