The City Council of Orihuela It has managed to sell one of the three municipal urban plots that it put up for auction in August, after the first call that began in March was abandoned. Of course, it is the smallest piece of land and that it has managed to sell to a promoter after lowering the starting price it had in the first auction by almost half, which was deserted. Specifically, these are the lands that correspond to Parcel IR-6, of PAU-9 of the El Garbanzuelo sector, which has been awarded to the mercantile Oasis Hill SL for 565,000 euros (683,650 euros with VAT). This same plot, the City Council tried to auction it off in March for 1.2 million euros. The other two plots that went up for auction for the second time, the R-11 of La Cuerda and the AUR-B, of the PAU-21, have been left deserted as no developer or individual has bid for them. So of the 17,439,778 euros, 21,102,130 with VAT, that the Oriolano council wanted to obtain from the auction of the three plots, only 683,000 euros will be added to the municipal coffers.
The plot sold is in the sector The Garbanzuelo (PAU-9), has 6,951 square meters, with a building area of 3,659 square meters and the starting price was set at 502,841, plus VAT, which adds up to a total of 608,437 euros. This plot is located north of Orihuela Costa, on the second line of the coastal section and next to the highway AP-7, bordering Torrevieja. The buildable area for the buyer is a maximum of four floors. The architect’s valuation report, commissioned by the Orihuela City Council, and which is included in the technical specifications, indicates that the estimated sale price of all the homes that can be built there is 5,676,206 euros. With the static residual value calculation made by the architect, subtracting the cost of the works, which would total 3.8 million, the developer’s gross operating margin would remain at 1,021,000 euros. It is the smallest of the three lands that went up for auction and, therefore, the cheapest.
The Orihuela City Council will now have to decide what to do with the other two plots that have been deserted, whether to put them out to tender again, reducing the auction starting price even more, or wait for better times not conditioned by the coronavirus pandemic, what the Councilor for Heritage, Rafael Almagro, blamed, that the first auction was deserted.
Thus, the Oriolano consistory has yet to sell two plots in Orihuela Costa, after its auction was deserted for the second time in 8 months. It is Parcel R-11, of the Reparcelling Project of the Sector Rope, with an area of 15,861 square meters, of which 7,726 are buildable. Its starting price was 3,826,134 euros (4,629,622 euros with VAT) and it has urban planning charges that exceed 471,800 euros. This urbanization is located between La Regia and Castillo de Don Juan, on the second line of the Oriolana coast. Despite the fact that the starting price was lowered from 5,092,585 euros (VAT included) in March to 4.6 for which it came out again in August, that reduction of just 400,000 euros has not managed to be attractive enough to potential bidders. On these lands, up to 89 homes could be built in buildings with a maximum of four floors, with an estimated sale price of 15,297,536 euros, of which the developer would obtain a gross operating margin of 2.7 million.
Finally, the AUR-B parcel, the PAU 21 reparcelling project, is the largest of the parcels owned by the City Council on the coast that it intended to dispose of. It has an area of 38,539 square meters of land, of which 24,194 are buildable and is the land most appreciated by the sector, in the Colinas Golf Resort. The starting price reduction with respect to the first auction was 1.5 million less, but even so the City Council has not managed to bid for it -in March it went up for auction for 17,450,477 euros, VAT included, and in the last one was lowered to 15,864,070 euros with VAT-. The estimated value in Colinas Golf It is linked to the type of urban land being auctioned, in the main luxury urbanization on the Oriolano coast, surrounded by protected land – in fact, the municipality protected this controversial construction with a great environmental impact. An exclusive area where the developer has imposed a barrier access and license plate control despite the fact that almost all of the roads, green areas – and some municipal farms such as those to be auctioned – are public. In this case, the auction plot allows the construction of up to four floors of houses with an estimated value of 55,233,879 euros, according to the architect’s calculation. The gross operating margin for the developer exceeds 9.9 million euros.
On March 3, the Governing Board of the Orihuela City Council approved the sale, by auction, of the three municipal plots of a patrimonial nature located in Orihuela Costa. Between the three, the starting price amounted to 23,753,063 euros and a total of 61,351 square meters for the three plots. However, the auction of the three lands was deserted and the council returned to put them out to bid in August with a price reduction, until all of them remained at 21,102,130 euros. Not even the 2.6 million euros of discount have been seductive for a sector that is also affected by the health crisis.
The money collected from the sale cannot be used for current expenses, rather, it must be invested again in real estate of a patrimonial nature.
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