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Latin America Investment News on Viva Tropical

Funding Falls Through for Prestigious Real Estate Project in Panama

Article Summary:

Funding has fallen through for one of Panama’s exclusive real estate projects, ‘Los Faros’ in Punta Pacifica. To date $100 million has been spent on the project, but it now sits stranded because there is no funding nor interested investors.

Photo Credit: INE

Original Article Text From INE via Google Translate :

The Mall Group Leaves Spain and Seeks Solutions to their Works in Mexico and Panama
The Mall Group, the employer Spaniard Julio Noval, is out of business and real estate developer in Spain to focus on taking forward the luxury development that began in Campeche (Mexico) and one in Panama, both paralyzed.

The first legal conflict with the developer and the Mexican State itself, in the very Noval. The second, for lack of funding, which is negotiating with U.S. investment funds. The future of the Asturian company passes through investments in Latin America and probably in Arab countries, although currently there is nothing firm on the table, as confirmed by the president of the company.

The Mall group claimed a year ago, the Government of Mexico $1,214 million dollars (843 million euros) in compensation and return on investment that the company had made ​​in the luxury resort of Campeche, which was “impractical” for the company by Julio Noval defaults The Mexican Administration, as the employer.

The Campeche Playa Golf Marina & Spa Resort was the largest resort community that promoted a Spanish company in Mexico. This is an exclusive area with 3,045 homes, a five star hotel with 500 rooms, a marina for 150 boats, a conservation Biocentre of the hawksbill turtle and a golf course with 18 holes designed by renowned golfer Jack Nicklaus.

The term of the project was the spring of 2010, but has not yet delivered a single floor. Julio Noval group signed the construction and financing of the complex with the Mexican construction company ICA. “Linking both was the biggest mistake we could make.

The works were delayed and delayed … “. And both companies ended up litigating. “We terminate the contract with ICA, but ignored. So we had no choice but to initiate arbitration against Mexico based on the Treaty of Reciprocal Protection of Investments between Mexico and Spain, “Noval said. Still, the Spaniard businessman claims that “after much difficulty, I think this can come to an end soon through negotiations we are having right now. ”

The business of Campeche Playa Julio Noval was to participate with fellow Spaniard Celuisma group in the airline Air Asturias, which broke a few months after starting flights. “We stepped out of that business after the first flight. It was not our world, we knew nothing about it, and did not see clear, “said the owner of the group Mall This business was after the scandal that occurred in Asturias in 2000, when Cajastur and Caja Spain reached an agreement which meant canceling a debt of 1,500 million pesetas Julio Noval.

It was the year of political confrontation for control of the Fund, when President of the Principality, Vicente Álvarez Areces, placed for a few months as president of the bank to Paulino Garcia, Manuel Menendez until it was reinstated in office.

Panama was chosen by Noval another country to develop a luxury resort. Already invested $ 100 million in the foundation, “but now stands because there is no funding. Banks have turned off the tap to real estate worldwide, not only in Spain, “said the businessman. Hence you have decided to negotiate with investment funds to take the project forward. “There are currently directors of the company in New York for that matter,” he said.

In the case of Spain “we have no activity, although we are seeing opportunities in parks, supermarkets, mall type. But only in study. ”

Link to Original Article:

From INE

Latin America Investment News on Viva Tropical