It's very interesting to read the press today and see what the Spanish papers are saying about the dire financial news which was released yesterday reference the Polaris World developments.
La Opinion talks in practical terms about what the developer has done, a legal business expert , Pedro Luis Saez explaining that the company is using the protection of an amended law to give itself "an umbrella" from its creditors.
The amendment to the law was only made in March of this year, in response to the changing economic climate, and allows companies to communicate their intent to negotiate with creditors, effectively buying them three months breathing space and preventing them from being forced into a bankruptcy situation.
La Verdad , on the other hand, are almost congratulatory of the move that has been made by Polaris saying that Pedro Garcia Merono, owner of 50% of the company, has "not lost control of the situation."
They say that, "Although the urban model championed by the group could be criticized from some viewpoints, it shouldn't be forgotten that at this point in time, it's collapse will benefit no-one. It could be said that Polaris has bitten off more than it can chew, but what is clear is that it is showing it's maximum capacity for resistance before the crisis, taking the bad weather on the chin unlike other big developers who collapsed at the first breath of wind."
The copy is clearly concerned about the effects that the collapse of the group could have on the local businesses who supply Polaris and the 700 employees, and categorically states that the business will not go into bankruptcy as it is bad for business should it do so.
Commendable loyalty.
Interestingly, there is not one word in either publication about the effect that this situation will have on the ex-pats who have recently bought on the Condado de Alhama complex and now find themselves in the position that the services they were promised will not be delivered.
Or the adverse effects that the negative publicity this news will undoubtedly generate in the British press back in the UK.
There is not one gesture, albeit empty, of understanding , or sympathy, for the ex-pats who have purchased these properties.
We had an email this morning from a local resident, who lives on the Condado de Alhama who was absolutely incensed by this news. He had originally committed to a second apartment off-plan, with a view to selling it on once the complex moved onto the second phase. He has recently been pressured by the group to accept an alternative apartment and make his final payment, so now feels angry, bitter, cheated and badly used.
Recently the 2500 people who paid deposits and payments on the projected Trampolin Hills development in North Murcia have had to stand and watch as the developer fought one court battle after another, the realization dawning that bankruptcy was the only option and they would all lose most of their money.
We wrote about the Santa Ana development in Jumilla this week, another 2500 homes that will now not be built after a court ruling accepted that the question of water provision for a development and golf courses had not been fully considered. The La Verdad article following that ruling waxed lyrical about the shepherd who had brought the case against the development, applauding his resolve to protect his home. As was stated on the story we wrote, we also applaud his resolution, as sheep owners living on an isolated finca, we would do exactly the same thing to protect our home.
But what about the 2500 people who had been sold the dream of the completed urbanization and paid over their money for homes that would not now be built?
Not a word was said about their plight.
Suffering from a moment of temporary patriotism this sentiment was posted on their forum, and at nearly 1am.
Yesterday a press release from the Region of Murcia talked about the plans to promote the region of Murcia as a tourist destination for the year 2010, the main targets for the campaign being the British.
Living here, we can't stress enough how much we still fervently believe that Murcia has an incredible amount to offer as both a tourist destination and a place to live. We have an incredible climate, amazing sports facilities, stunning scenery, mountains, the Mar Menor, an incredible wealth of history, culture and tradition, as well as an astonishing programme of cultural entertainments and activities to enjoy.
As both tourists and residents, we bring vast amounts of revenue to this region, so why are we treated with so little respect and our well being disregarded so blatantly.
The truth is, this last Condado development at Alhama should never have been built.
There is no point saying that the poor old developers have been caught out by the nasty economic climate and the poor things have lost lots of money. And it's not their fault, it's all down to the economic crisis.
La Verdad is talking about 100 million euros as though its' not a lot of money and it doesn't matter because the banks are able to pick it up and it will all be ok.
What school of business economics did they all go to?
This economic downturn has been well documented. The situation of over-supply has been written about to exhaustion. Over-supply places downward pressure on prices.
Forcing the banks to re-possess property forces prices downward as they attempt to off-load the assets and convert them back into cash.
Economists have been predicting this economic downturn for years, urging the Spanish government to rein in, slow down, put on the brakes.
But nobody wanted to listen because they were all too busy making lots of money and didn't want to believe it could ever end.
Facundo Armero, the partner who sold out in 2007 saw it coming and bailed at the right time, so why didn't anyone else?
What we find so incomprehensible is that no-one stops to think of the ripple effect these massive collapses cause.
The loss of confidence in the markets. The loss of confidence this adverse publicity causes.
The British are here because we thought it was safe to buy in an EU country. We thought our money was safe in Spain.
Now we know that it's not, are we really likely to keep ploughing more in?
Can Murcia afford to lose the money we bring to this region?
Honestly?
Don't sell us out. Don't let us down. Don't let us lose the faith in our dreams. Don't let the people who caused these problems for so many thousands of people walk away scot free, and leave the banks to bear the brunt of their short sightedness and blind greed.
We chose this region because we thought it was the best place in the world to live.
Don't allow us to lose faith in our decision to live here.
| Area | Town | Subject |
| Murcia Region | Region of Murcia | Spanish Property.. |
All Text and Images are Subject to Copyright |
