Polaris World struggling to repay debts says local news website in Murcia

 

Polaris World struggling to repay debts says local news website in Murcia

A news website in Murcia claims that Polaris World – one of Spain’s biggest developer with a focus on holiday homes – is struggling to pay some of its debts to local government.

In an article entitled ‘Critical situation at Polaris World and its companies’ Vegamediapress.com claims that Polaris World cannot get banks to guarantee millions of Euros that it owes to municipal governments in Murcia for planning agreements.

The article reports that, amongst other debts, Polaris World still owes the town council of Torre Pacheco more than 4 million Euros for a planning agreement for the Mar Menor Golf Resort – the first Polaris World development in Murcia.

According to the article, Polaris World is looking for an extension on its debt payments, with company executives blaming a temporary lack of liquidity, rather than structural problems. The company is alleged to have offered its office buildings – already mortgaged – and the golf course at Hacienda Riquelme as collateral for an extension on its debts.

The article also claims that the company has been laying off staff, and that there is an “air of crisis” at the firm.

A “breaking point” could be reached in the following days or weeks, says the article.






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No wonder that their office in Torrevieja has been closed for some time.

It's no surprise though when you consider some of there sales ethics, buy the property off plan only pay 30%, and then sell it before completion, never works in my book.

 

Credit Suisse own 30% of Polaris and I very much doubt that they will let them go under. It's only my opinion of course.

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www.mortgagehelplinespain.com

 

This was a known ethic at one stage at the height of the property boom. Sell a property, if the buyer pulled out prior to completion a lot of the properties had gone up in value. So the developer made a bigger profit.

By the sounds of it, that has now turned full circle.

People who have put down deposits are pulling out, losing their deposits and buying an equal property for a lot less and still being better off by losing their deposit.

If the likes of the big boys like Polaris are going down, this is not good.

The property news articles that get posted on here from other on line sources so far, have been very reliable.

How many people will this one affect and I honestly hope they can get some kind of resolve. Something like this can kill a lot of confidence in the Spanish property markets.

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Well the ads are still on Telemadrid every weekend. They´ve changed their marketing though and are now offering a free weekemd to experience the place. Personally I´ve always thought that Murcia is just that bit too far from Madrid to work as a weekend destination throughout the year. Valencia at 3hrs is far more attractive to Madrileños.

 

With the collapse of Martinsa-Fadesa earlier this year, no doubt the property experts and reporters will be a bit jumpy and be seeing things that might mean nothing as an indication of something.

Martinsa-Fadesa collapse and the clear up operation since with many people wondering what is or will happen to their properties has no doubt made a lot of people very jumpy.

 

I very much doubt Polaris will go down.

There have been rumours going around for two years now. I deal with their completions team on a daily basis, and without a doubt they are a little less relaxed now than they were a year ago, but nothing to suggest their imminent collapse.

 

Polaris World is one if many developers and big RE firms in Spain that are in big trouble... Aifos had huge problems and being involved with the Malaya case in Marbella got hit even harder, Habitat in Barcelona is struggling repaying loans calling for an emergency shareholder meeting to avid bankruptcy, the list goes on... All you have to do is open a Spanish Newspaper and you will see it.

It's funny though how many people still don't see it...