● 2006 - No legally required Bank Guarantees for Off-Plan deposits totalling 1.5 million Euros
● February 2011 - Lawsuit against CAM Bank & developer Cleyton GES SL filed to Court
● 12 January 2012 - First Instance Court Preliminary Hearing
● 21 & 22 May 2012 - Trial held in First Instance Court - Hellín
● 8 June 2012 - Judgment released in favour of Finca Parcs Action Group
● CAM Bank and Cleyton GES SL sentenced to return deposits amounting to almost 1.5
million Euros to the buyers with the addition of legal interest and costs
● July 2012 - CAM Bank appeals the First Instance Court Judgment
● July 2012 - Finca Parcs Action Group submits Opposition to the CAM Appeal
● July 2012 - Finca Parcs Action Group file Provisional Enforcement Order to the Court
● August 2012 – CAM Bank pays full amount of deposits plus legal interest and costs
to the Court
● Appeal to be heard by the Albacete Appeal Court – decision expected within 1 year
PROVISIONAL ENFORCEMENT ORDER
Following the Finca Parcs trial in May of this year Spanish property developer Cleyton GES SL and CAM Bank (now SabadellCAM) were convicted jointly and severally by the First Instance Court to repay in full the off-plan deposits paid by members of the Finca Parcs Action Group plus interest and costs. Cleyton GES SL did not appeal the First Instance Court Judgment; however neither defendant paid the funds to the Court within the time limit set by the Judgment. Therefore the Finca Parcs Action Group filed a Provisional Enforcement Order with the Court which resulted in CAM paying the full value of the deposits plus the amount tentatively set for interest and costs to the Court.
Keith Rule coordinator of the Finca Parcs Action Group comments:
“We continue to make progress in this case and it shows that the Provisional Enforcement Order can work in a timely and efficient manner if you are enforcing a judgment against a solvent entity. Our case differs to other similar cases due to the fact that we also included the Bank in our Lawsuit. We filed our Provisional Enforcement Order with the Court on 18 July, it was admitted and enforced by the Court against both defendants on 19 July and on 1 August CAM paid the full amount to the Court. In due course the Court will transfer the funds to our Lawyers client account and we will have ‘interim’ possession of our funds pending the result of the Appeal”.
OPPOSITION TO THE CAM BANK APPEAL
Finca Parcs Action Group filed their Opposition to the CAM Bank Appeal on time and the Appeal will now be heard by the Albacete Appeal Court.
Keith explains, “The Appeal is not a physical hearing so we will not be called to appear in person again. Three magistrates in the Albacete Appeal Court will preside over the Appeal reviewing all the evidence and the first instance Judgment. Based on the timescales of other appeals in the Albacete jurisdiction, we expect the appeal decision to be released within one yeaspaña parece abocada a un rescate. La mayoría de los expertos apuestan por esta salida para la actual situación de dificultad para financiarse a intereses razonables en los mercados.
Esta nueva solicitud de ayuda podría consistir en la petición de que los fondos de rescate compren deuda española logrando unos intereses menores a los del mercado, una acción que combinaría con la concesión de una licencia bancaria para que el Banco Central Europeo pueda inyectarles más dinero.
"España tal y cómo está haciendo las cosas tendrá que pedir un rescate", explica Soledad Pellón, de IG Markets. "El rescate es inevitable y la única duda es cómo se hará", afirma Víctor Alvargonzález, director general de Profim.
"La solución ya no está en manos de España, que ha perdido totalmente la confianza de los acreedores. Para que vuelva esa confianza, España necesita un avalista", añade Alvargonzález, quien cree que sólo un mensaje de que el BCE comprará deuda de manera "ilimitada" podrá sacar al país de esta situación.
Para ello, Alemania, principal contribuyente a los fondos europeos, exige dos condiciones: un supervisor bancario europeo y un organismo que controle las cuentas de los diferentes organismos públicos -en España, las comunidades por ejemplo-. Alvargonzález destaca que ya se ha acordado el supervisor bancario pero que aprobar el segundo organismo será más difícil por la previsible oposición de países como Francia.
En cualquier caso, la cuestión ahora es si esa petición de ayuda acarreará más ajustes exigidos por Europa. "[Estas exigencias] Posiblemente serían muy agresivas, pero se intentarían camuflar en lo posible. Irían orientadas en dos líneas: reducción de déficit y mejora de competitividad", afirma Alberto Matellán, de Inverseguros.
Los analistas creen que las reformas son inevitables, tanto si se exigen externamente como si no. "En algún momento habrá que volver a salir a los mercados a emitir deuda dado que no podemos estar rescatados eternamente. Con lo que además del rescate se necesitan hacer las reformas necesaria para volver a ganarnos la credibilidad perdida", explica, por su parte, Pellón.
Mayor recorte en los gastos
Los analistas creen que los nuevos ajustes deberían centrarse más en la partida de gastos que en la de ingresos -impuestos-. "El ajuste que se ha hecho hasta ahora es sólo testimonial. Se ha afrontado más por el ingreso", remarca Matellán.
Pese a ello, este experto cree que aún hay margen para más subidas de impuestos. "Ya han subido mucho, pero todavía se puede más, tanto en IRPF como en IVA y Sociedades. Sin embargo es posiblemente la medida menos efectiva y Europa lo sabe", añade.
Un Estado 'sobredimensionado'
Para realizar ese ajuste en el gasto, todos los expertos consultados coinciden en que la Administración en España está "sobredimensionada".
"Se está reduciendo el gasto en inversión, que afecta al crecimiento económico, pero el gasto corriente no ha dejado de crecer", explica Pablo Almagro, economista del Servicio de Estudios del IEE. "Es vital, en este punto, eliminar las duplicidades de gestión entre distintas administraciones", añade este experto.
"Es uno de los temas que más preocupa a Europa por el pozo sin fondo que son las comunidades autónomas y porque realmente tampoco hacen ajustes significativos; algunos incluso hasta ridículos", asegura, por su parte, Matellán, de Inverseguros.
"Valen dos soluciones. Máxima descentralización o máxima centralización. Lo que no puede haber es dos -o incluso tres- 'Estados' que gastan varias veces en lo mismo. El ahorro podría ser de al menos 20.000 millones de euros", afirma Alvargonzález, de Profim.
Empleados y empresas públicas
En esa línea los expertos consultados creen que se podrían producir despidos de empleados público. "No necesariamente funcionarios, sino contratados laborales y en empresas públicas", apunta Matellán, quien también asegura que se puede apostar por realizar privatizaciones.
Por su parte, Pellón cree que se deberían liquidar empresas públicas "ineficientes" y "reducir también ciertas subvenciones".
Otros expertos inciden en que el Estado debería deshacerse de edificios públicos de gran valor económico -la consultora Aguirre Newman valora el total en 40.000 millones de euros- y trasladar sus oficinas a barrios más baratos para ahorrar.
Mercado laboral
El Banco Central Europeo ha recomendado en un informe esta semana que España baje el salario mínimo y que se produzcan bajadas de salarios para hacer más competitiva la economía.
Soledad Pellón, de IG Markets, también cree que se debería aumentar la edad de jubilación "de manera más apresurada" y ajustar aún más la prestación por desempleo, que ya fue recortada en el último paquete ajuste aprobado por el Gobierno.
Por su parte, Alberto Matellán, cree que el ajuste en el mercado laboral debería centrarse "no tanto en el despido", como en la última reforma laboral, sino en las cotizaciones sociales.
Jaime de Castro, Lawyer for the Finca Parcs Action Group comments, “After reviewing the Banco CAM appeal and submitting our Opposition to that Appeal, I feel confident of a successful outcome in this case given the strength of the First Instance Judgment against CAM and the available Case Law relating to Banks liabilities and obligations according to Spanish Law, LEY 57/1968”
Maria de Castro, Director of Costa Luz Lawyers, one of the two legal teams that have been working on this and other similar cases over the past few years adds, "The success of this appeal will enhance confidence in our judicial and banking systems abroad which have been severely weakened during these years of crisis. We are confident that the precise interpretation of LEY 57/1968 by the courts will help to encourage future real estate investment by ensuring that these abuses do not occur again"
Despite its actions being described by the First Instance Judge as ‘banking malpractice’ CAM Bank continues to maintain that it is not responsible for the situation and that all irregular actions and illegalities were committed only by the developer.
APPEAL DECISION EAGERLY AWAITED BY OTHER OFF-PLAN VICTIMS
Other buyers of off-plan property who were not issued with the legally required bank guarantees will be awaiting the outcome of this appeal with interest as an Appeal Court decision can be used as a Case Law precedent in other similar cases.
Keith says; “During the past few years buyers without Bank Guarantees were advised to take legal action only against the developer. They win the case, but enforcing the judgment proves very difficult as on most occasions the developers have asset stripped, gone missing, declared bankruptcy or entered Administration.
For buyers in that situation it is important their cases are now reviewed by their legal teams to see if they have the necessary evidence required to file a Lawsuit against either the Bank who knowingly accepted the off-plan deposit and failed in its legal obligation to issue or verify the existence of the corresponding Bank Guarantee or against a Bank who may have issued a Generic or Collective Bank Guarantee to the developer”.
LICENCE TO BUILD AT LAS HIGUERICAS, FINCA PARCS EXPIRES
The Ayuntamiento de Hellín (Hellín Town Hall) has issued a Resolución de la Adjudicación
del Programa de Actuación Urbanizadora en el sector de Las Higuericas.
The result of this is that Finca Parcs developer Cleyton GES SL has had the contract for the licence to build the Las Higuericas Finca Parcs development cancelled after they failed to complete the urbanisation within the time limit set according to the Contract signed with the Town Hall.
The Town Hall has now claimed the funds under the security bond that was given by Cleyton GES SL at the time of signing the contract.
Cleyton GES SL abandoned the Las Higuericas Finca Parcs project in May 2009 completing only 10% of the planned 617 detached villas and none of the properties were granted a First Occupation Licence.
CAM Bank (SabadellCAM) as the single largest creditor now owns the properties that were constructed but they or any other developer or promoter cannot continue with the Urbanisation without first submitting a new draft plan to the Town Hall and requesting a new licence.
HUGE FOREST FIRE ALMOST DESTROYS LAS HIGUERICAS, FINCA PARCS
In July a huge forest fire burned out of control for 2 days in the mountains of the Sierra de los Donceles. The fire came very close to the Las Higuericas Finca Parcs site and although the infrastructure was not affected, much of the forest area at the back of the site was destroyed.
August 12, 2012 6:54 pm
Spanish commercial property on the brink
By Ed Hammond in London
The Spanish and Italian commercial property markets have all but collapsed with the number of transactions in both countries falling more than 90 per cent in the three months to July as investors worry about the future of the eurozone.
Only three property transactions were registered in Spain during the second quarter, down from 58 deals in the previous quarter. In Italy the slide was even more pronounced, with just two buildings being traded during the period, down from 56, according to data from Real Capital Analytics.
The severity of the decline highlights investors’ concerns about the risk of owning fixed assets in the two countries given the uncertain direction of the eurozone economy.,
The total value of transactions for offices, shops and industrial property in Spain was €67m for the second quarter, down 74 per cent from €260m in the first quarter. The inactivity meant Spanish property transactions were below those of neighbouring Portugal for the first time.
“Heightened risk aversion, particularly among cross-border institutional investors, has led to an almost complete collapse in southern European acquisitions,” said Joseph Kelly, director of market analysis at RCA.
In Italy, a few property sectors, such as the Milan retail space market, had held up well during the downturn. However, growing concern over the country’s economy and its future position in the eurozone appear to have snuffed out investor confidence across the market.
The decline of the Spanish property market, previously among the most active in Europe, has been more gradual.
During the early 2000s, the country’s property sector grew bloated on cheap debt and inflated expectations about future demand. But the global credit crunch dented confidence in the market, wiping hundreds of billions of euros off the value of Spanish property. The country’s banks were left holding vast portfolios of offices, shops and development land, most of which could only be sold at heavily discounted prices.
The drop off in activity during the last quarter, which has coincided with sharp rises in the borrowing costs for Spain, suggests even the appetite for buying distressed real estate has dissipated.
“We are not pricing in deals where revenues might end up being in pesetas, not yet anyway,” said one senior principal at a Spanish private equity firm.
“There is no reality in how to price anything there at the moment. You have eight years of unsold supply sitting in the banks, so how do you put value on anything else?” the person added.
Leading property economists have suggested that Spanish and Italian investors have been in denial about the state of their respective real estate markets.
Christian Ulbrich, European head of Jones Lang LaSalle, the property services group, said that reality had dawned as a result of further declines. “Things have deteriorated a lot since end of last year and prices are coming down drastically.”
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