Irish company FBD Property & Leisure Ltd has announced a joint venture with Taylor Wimpey Spain to develop 103 units at its La Cala Resort near Malaga Airport. The Irish company said it would involve 55 townhouses and 48 apartments with a retail value of €40 million.
This development is FBDPLL’s second partnership with the Spanish subsidiary of Taylor Wimpey, a FTSE 100 company.
Construction at ‘Horizon Golf’ will begin in February 2016 with the first units to be handed over in the following year.
This will bring to 163 the number of units developed by FBDPLL and Taylor Wimpey at La Cala.
The other development was launched in late 2014 and consisted of 60 apartments with a retail value of €20 million. To date, 55 of the units have been sold, generating sales of €17.9 million.
Finance
FBDPLL expects to make a profit of €12 million from the two ventures at La Cala when fully sold. Its equity in the venture is the land holding, fully serviced, with Taylor Wimpey financing the construction costs.
Speaking to The Irish Times, David Kelly, chief executive of FBDPLL, said there is potential for an additional 1,000 units at La Cala.
“We are actively looking at joint venture three and joint venture four,” he said.
When asked if these might involve Taylor Wimpey, Mr Kelly said: “Why change a winning formula?”
FBDPLL is owned by Farmer Business Developments plc following its acquisition last year of the 50 per cent share held by listed insurer FBD. It also owns and manages the Castleknock Hotel and Country Club in Dublin, and Faithlegg and the Tower hotels in Waterford.
