Llanera Spanish properties to be completed

February 03, 2008

Banco de Valencia and Caja del Mediterráneo guarantee to complete two projects left unfinished by developer's insolvency.

The first major casualty of the slowdown in property sales in Spain has been Llanera, an important developer.

Among the projects it was working on that have been affected by the firm's collapse are 124 subsidised properties (for Spaniards on low incomes) in Alfara del Patriarca in Valencia, 75% of which have already been sold.

Banco de Valencia has confirmed that it had granted Llanera 12 million Euros of funding and would maintain its financial support of the development. Another Spanish bank, Caja del Mediterráneo (CAM), has arranged to continue financing another Llanera project, again in Valencia.

The Llanera projects of most concern within Spain are, naturally, the social housing and infrastructure ones: the firm was in the process of building six schools in the Valencia region, and building on these has been halted.

However, the officials overseeing Llanera's insolvency are well aware that people who have bought homes from the company and not yet received them must be taken into account.

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