It was just a year ago that FONATUR had an auction for the development lots that would be available at the Litibú development. One of the primary purchasers of land at this auction was FADESA, a very large Spanish real estate development company. Well, things aren’t going very well for FADESA lately.
(AGI) – Madrid, 16 July – Spanish banks are taking measures following the crisis which hit the property company Martinsa-Fadesa, which requested receivership on Monday evening. The Spanish bank Caixa Galicia announced that it was earmarking 78 million euro to cover the losses and the decision follows that of Caja Madrid which has earmarked 250 million euro and that of Caixa, shareholder of Abertis and Telefonica, who instead earmarked 192 million in the accounts in the first six-month period. Martinsa-Fadesa, which is one of the most important property groups in the country, was severely hit by the sub prime crisis and has to face debts of 5.2 billion euro.
What will this mean to the land that FADESA has spoken for in Litibú? A good question. What is good is that they never broke ground. There are not projects there that they have begun and could have left partially built. Not good news for the development of Litibú or those that did decide to break ground. It will be interesting to see where FONATUR goes next with this one.