Weekender Alicante North Issue 120

30 FRIDAY 6TH DECEMBER 2019
www.weekender.news
DEVELOPERS FACE
BANK SQUEEZE
by Alex Trelinski
Pedreguer Club for sale
Club for sale
ONE of the landmark properties as
you drive along the N-332 in the
Pedreguer area is up for sale.
The El Quijote show bar, a “hostess
club” that has had various run ins
with the authorities down the years
is now on the market with a local estate
agent for €2.5 million.
The properties official function is
as a cabaret bar with hotel rooms and
it is now being marketed as an aparthotel.
It is certainly a sizeable place,
by Simon Russell
with 50 rooms and over 3,500 m2 of
space and boasts of its “excellent location
near schools, a chemist and bus
stop”, amenities which were probably
not uppermost for the majority of El
Quijote’s clientele.
Many locals will be glad to see the
establishment repurposed although
its future function remains vague.
& SOLD!
When it comes to selling your
SPANISH property builders are
facing a lack of bank loans for
small and mid-sized developments,
according to industry
representatives.
The comments were made at
a conference organised by the IE
Real Estate Club, part of a business
school, and Urbanitae, a real
estate investment platform.
Representatives from building
and investment groups talked
about the financing options open
to Spanish developers in the current
market.
Carolina Roca, General Manager
of the developer Grupo Roca,
and VP of the Asprima builders’
association in Madrid, said
that banks are cutting off loans
to small and mid-sized developers,
many of whom need 100 per
cent financing above land acquisition
costs.
Banks are reportedly tightening
up their lending conditions,
meaning that only the biggest developers
backed by international
funds who can afford to finance
30 to 40 per cent of development
costs from equity can now get financing
from banks with interest
rates of around two per cent.
The problem is that if small
and mid-sized developers turn
to alternative sources of funding
other than banks, interest
rates shoot up to eight per cent or
more, making development projects
harder to go through win.
In a large number of cases, the
sums then don´t add up in a competitive
market in terms of new
house prices.
Spain is dominated by large
builders like many other European
countries like Britain, with
smaller developers being the
main factor in this country.
According to industry estimates
the top two biggest home
builders in Spain have a tiny
share of just a per cent of the
market, compared to around 20
per cent in Britain.
That means if the banks are
getting tight, the logic is that new
builds in Spain could start to fall
over the next few months or so.
property, choose people who
care. List your property with us...
+34 965 270 636
info@coastandcountry.properties
www.coastandcountry.properties