Foreclosures stun Dominican Republic’s biggest resort complex
Santo Domingo.- Dominican Republic’s State-owned bank (Banreservas) foreclosed on 41 units in an upscale real estate development at the complex Cap Cana (east), built by the Spanish hotel chain NH Hoteles and the S&L Caja Duero, according to Spanish media reports on Tuesday.
As a result of the developer Capredo Investment’s failure to pay the US$24.8 million debt, Banreservas has seized the units built jointly with a local partner.
The hotel chain and Caja Duero own 25% of Capredo Investment, Switzerland based company, which in 2006 launched the project to build luxury 90-room hotel and some 335 luxury homes in three phases.
The development called Sotogrande was built at Cap Cana to attract wealthy Spaniards who already had properties at the exclusive Bahia de San Roque, Cádiz.
NH Hotels, seeking to replicate their success with a high end urban development such as Sotogrande, began construction of the first phase with 122 apartments on nearly 40,000 square meters of land on October 15, 2008.
This first phase was completed at the end of November 2010, with the global financial crisis already in full swing.
The promoter managed to sell just 78 united, but finally handed over only 71, since seven were about to be handed to, or being renegotiated with the buyers. The remaining 44 were finished, empty, and without buyers.
After several rounds of negotiations with the Banreservas, the Dominican bank opted to foreclose on the apartments at Cap Cana, the country’s biggest resort development.
Category: DR News |