FBD to spend €40m on Spanish development
FBD Property & Leisure is planning a huge new development in Spain as it seeks to take advantage of the improving appetite for holiday homes on the Costa del Sol.
FBD, which is now entirely owned by Farmers Business Developments after FBD Insurance sold its share in the business last year, is spending €40m on its La Cala resort near Malaga, in a move that will see the construction of 55 townhouses and 48 apartments.
The company also controls the Castleknock Hotel and Golf Club in Dublin, and the Faithlegg House and Topwer Hotels in Waterford along with the Sunset Beach Club in Spain.
The development is being run as a joint venture with Taylor Wimpey Spain.
Construction of the new development called 'Horizon Golf' will begin this month, with the first units to be handed over in 2017. Sales of the units will be launched later this year.
This is the second large development to be undertaken by FBD in recent years at La Cala. It is at the closing stages of its first joint venture with Taylor wimpey, which saw the construction of 60 apartments at the 1,000 acre site.
As many as 55 of those apartments have now been sold, generating sales of €17.9m. The company expects to net cash of €12m from the sale of both the first and second joint venture developments at the La Cala Resort.
FBD Hotels & Leisure chief executive David Kelly (inset) said, that "we are now seeing significant momentum building in the Spanish hotel and residential property sectors.
"Investment in Spanish property jumped 263pc from €4.9bn in 2013 to €17.8bn in 2014, which is supported by record visitor numbers and an 8pc increase in visitor spending in 2015.
"This makes Spain a very attractive proposition for investors, with a weak euro also a big plus for non-euro investors," he said.
Mr Kelly added that he expected most of the buyers to come from the likes of the UK, Scandanavia and central Europe.
La Cala Resort is the biggest golf resort in Spain with three golf courses and an executive par-three course. The 107-bedroom four-star hotel boasts a 1,300 sq m spa and UEFA-approved soccer facility. The property also has three golf courses, along with 448 apartments, townhouses and villas. FBD also have planning permission for a further 1,045 units.