Archive for the ‘Legal issues – Spanish commercial property investment’ Category

Deloitte faces loss of license to operate in Spain for “very serious offences”

Tuesday, July 2nd, 2013

According to El Confidencial, the auditing firm Deloitte is facing the loss of its license to operate in Spain. The Ministry of Economy has uncovered “very serious offenses” in the auditing of Bankia by Deloitte.

The inspection, carried out by the Institute of Accounting and Auditing (ICAC) of the Ministry of Economy, on the performance of Deloitte in the merger and IPO process of Bankia detected “very serious offenses”. These could lead to the loss of the license of the audit firm to operate in Spain. The findings, contained in three documents to which El Confidencial had access, have already been referred to the magistrate in the Bankia case, the National Court Judge Fernando Andreu, who will have to assess them now and decide if this implies new criminal liabilities. At present there are 32 past directors of Bankia who are defendants in the case that began after a complaint from the Union, Progress and Democracy (UPyD) political party.

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300 evictions per day in Spain for mortgage payment default

Monday, September 19th, 2011

“The great Spanish mortgage dream has turned into a nightmare”

Manuel Pardos, Chairman of the Association for Users of Banks, Savings Banks and Insurance Companies (ADICAE), has raised the alarm on the number of evictions in Spain for mortgage default which has reached the rate of 300 per day.

In a press conference in Alicante, Pardos released this statistic in order to support his organisations proposal for the approval of a Decree Law which would impose a three year moratorium on mortgage payments. He said this would benefit “more than a million families” in the whole country.

Pardos stated that on 25th August his association had submitted the proposed text to the Economic Office of the president of the Government and other ministers and parliamentary groups.

The objective of the decree would be to halt the current high rate of mortgage foreclosures and repossessions. “The great Spanish mortgage dream has turned into a nightmare”, complained Pardos who also referred to a collective demand presented by his association to more than 100 banking and financial entities for clauses relating to mortgaged land.

The initiative has been accepted by the commercial tribunal (number 11) in Madrid and 15,000 effected people have lent their names to it.

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Atasa releases its Code of Measurement Practice

Friday, September 16th, 2011

Atasa, the Professional Association of Valuation Companies in Spain, has released details of a Code of Measurement Practice which aims to meet the longstanding need for the homogenization of the measurement of floor areas”.

The code was made public in a presentation made on 15th September. Announcements were made by José Antonio López Torralba, Chairman of the Technical and Statistical Commission of Atasa, charged with editing the Standard; Gustavo Saiz, Chairman of Institutional Relations for the Commission; and Leandro Escobar, Managing Director of Atasa.

According to López Torralba, the Code of Measurement Practice “has emerged from the profound theoretical knowledge, wide practical experience and a long and continued effort by numerous technicians from many companies to synthesize a code coordinated through Atasa”.

The Code, “is intended to be a living document, and therefore, Atasa is already working on an extension for the correct application of the Code for distinct property types”, stated López Torralba.

For his part, Gustavo Saiz has emphasised the usefulness of the Standard for all agents which form part of the property markets in one form or other. Saiz also referred to the possibility of the Code being exported to other countries, since Tegova (The European Group of Valuation Associations) has adopted it as the basis for the elaboration of a European standard.

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Santander postpone sale of Banif assets due to lack of demand

Monday, May 24th, 2010

Banco Santander cites generally illiquid and depressed state of Spanish investment property market as motive to postpone sale of Banif Property Investment Fund assets.

The “lack of any reasonable offers” for properties within the Banif Property Investment Fund, managed by Banco Santander, has led to Santander Real Estate postponing the sale of further assets in the fund.

In a communication to Spain’s stock market regulator (CNMV) Banif Inmobiliario explained that the fund will postpone the sale of its real estate assets until 2011 whereas previously it had said that sales would be undertaken in the second half of 2010. The reasons for the delay stated by the fund are the illiquid and generalized depressed state of the Spanish property market. The company’s fund managers have asserted that it considers that the offers received for a high number of its assets are not sufficient to justify going ahead with sales.

The real motive for delaying the sales may be because the fund is hopeful about the expected advantages which will follow legal modifications by the Government for the liquidation of property investment funds. The Government is making changes to the law which will allow the manager of a fund undergoing liquidation to sell the assets without any time limit. This situation has lead those responsible for the Banif fund, the largest property investment fund in Spain, with a portfolio worth €2.6bn and 43,400 shareholders, to reject offers received for its assets which it believes are not in the interest of its shareholders. Many of the assets comprise residential apartment buildings.

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