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Metrovacesa Acquires Company that Owns Eurovegas’ Land

The developer bought a company to which it lent 90 million euros in 2011 in an accounting manoeuvre to avoid recognising the non-payment.

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The developer Metrovacesa has finalised the acquisition of four companies that had belonged to the company Urbanizadoras Valdepolo. Valdepolo is part owner of the land bank where the Eurovegas tourism and casino project was planned in Alcorcón.

Metrovacesa lent 88 million euros to Valdepolo in 2011, maturing in 2021. This money was not repaid on time, according to El Confidencial. The developer has decided to buy the other 50% of Valdepolo that it did not control.

This operation allows the listed company to add €91.6 million in real estate investment and eliminate the €88 million loan.

Valdepolo owns 1.9 million square metres of undeveloped land north of Alcorcón. In 2011, the Madrid High Court of Justice ruled that the lands should be classified as rural. The Supreme Court upheld the decision. Despite these events, Metrovacesa is relying on the past promise of the current Regional Minister of Housing and Local Administration of the Community of Madrid to revise the General Urban Development Plan (Plan General de Ordenación Urbana).

Read the full article in Spanish

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