Spain to sell off quarter of State - Owned properties
Source: http://www.telegraph.co.uk
#spain #realestate #culture #economy
The Spanish government has approved a plan to sell of a quarter of its state-owned properties in a bid to raise hundreds of millions and boost the government's empty coffers. In plans approved last week by Spain's cabinet, some 15 thousand properties - from office buildings to agricultural land - will be put up for sale over the next seven years. The measure is the latest in a series of moves to bring Spain's budget deficit to within the EU target of 3 percent by 2016 from 7.1 percent of GDP last year.
A parliamentary commission has drawn up an extensive list of assets that will be sold to private investors in the hope of raising millions to reduce its public deficit. Among those being offered include disused army barracks, an aerodrome on the island of Minorca, a military shooting range and thousands of office buildings.
The government said the portfolio will include around 10 buildings "considered unique" that it hopes will be snapped up by potential investors. Among those is a mansion house on Madrid's central avenue, the Paseo de la Castellana, that used to house the Secretary of State for Security, and a country estate in Andalusia comprising 35 thousand acres of natural parkland planted with cork trees.
Mariano Rajoy's conservative government announced plans last year to set up a commission to draw up an inventory of all state-owned property and identify those that could be sold off. The first properties to go under the hammer include the former headquarters of RTVE, Spain's state television and radio channel in Madrid and Galicia, and a disused army barracks in Seville.
The government has not yet released the portfolio of properties for sale over the next seven years or said whether they will be sold by auction or by public tender. The government is yet to outline how much money it hopes to raise in the asset sell-off.
Last year Spain's government raised 90 million euros in sales of state-owned buildings that had lain empty and made a further 37.5 million euros saving by renegotiating rental contracts.
Much of the rural property that will be put on the market will be offered with the opportunity for development to create local jobs. For example, La Almoraima, a finca in the Natural Park of Alcornocales, which has been owned by the Ministry of Environment since 1983, is being sold with the option to develop a resort with two golf courses and a five-star hotel.
Several months ago Greece's cash-strapped government also detailed its plans to sell 28 state-owned buildings on long-term lease, including tax offices, ministry buildings, and the main police headquarters in Athens.
A parliamentary commission has drawn up an extensive list of assets that will be sold to private investors in the hope of raising millions to reduce its public deficit. Among those being offered include disused army barracks, an aerodrome on the island of Minorca, a military shooting range and thousands of office buildings.
The government said the portfolio will include around 10 buildings "considered unique" that it hopes will be snapped up by potential investors. Among those is a mansion house on Madrid's central avenue, the Paseo de la Castellana, that used to house the Secretary of State for Security, and a country estate in Andalusia comprising 35 thousand acres of natural parkland planted with cork trees.
Mariano Rajoy's conservative government announced plans last year to set up a commission to draw up an inventory of all state-owned property and identify those that could be sold off. The first properties to go under the hammer include the former headquarters of RTVE, Spain's state television and radio channel in Madrid and Galicia, and a disused army barracks in Seville.
The government has not yet released the portfolio of properties for sale over the next seven years or said whether they will be sold by auction or by public tender. The government is yet to outline how much money it hopes to raise in the asset sell-off.
Last year Spain's government raised 90 million euros in sales of state-owned buildings that had lain empty and made a further 37.5 million euros saving by renegotiating rental contracts.
Much of the rural property that will be put on the market will be offered with the opportunity for development to create local jobs. For example, La Almoraima, a finca in the Natural Park of Alcornocales, which has been owned by the Ministry of Environment since 1983, is being sold with the option to develop a resort with two golf courses and a five-star hotel.
Several months ago Greece's cash-strapped government also detailed its plans to sell 28 state-owned buildings on long-term lease, including tax offices, ministry buildings, and the main police headquarters in Athens.
