FBD Hotels and Resorts has agreed a €100 million joint venture with Taylor Wimpey to expand its golf resort on Spain’s Costa del Sol.
The agreement will result in Taylor Wimpey, the construction company, building 280 houses and apartments at the Irish-owned 1,000-acre golf resort in the Spanish province of Málaga.
The agreement is the fourth such joint venture agreement between the two companies at the La Cala resort.
Under the terms of the deal, FBD Hotels and Resorts, the Irish hotel group, will own 90 of the new housing units with the remainder co-owned by the two groups on an equal basis.
David Kelly, chief executive of FBD, said the joint venture would allow it to take advantage of renewed demand in Spanish property. “Our joint venture with trusted partner Taylor Wimpey allows us to take advantage of this renewed interest by constructing modern, state-of-the-art residential units for buyers seeking a second home in one of Spain’s most in-demand regions,” he said.
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La Cala is a golf resort with three championship courses, a residential development, four-star 107-bedroom hotel, spa and football pitch.
The deal follows an initial phase of development by the two companies in 2014 worth €20 million, a second phase in 2016 worth €35 million and a planned third phase worth €70 million, which is due to start later this year. The latest expansion will result in 190 apartments and 90 townhouses being built.
Javier Ballester, managing director of Taylor Wimpey España, said the property group considered FBD to be a “strategic partner” with which it could grow its presence in Spain.
“We made significant progress in the Spanish market last year by completing 304 homes and by delivering a double operating profit of £20.6 million for 2016. The first half of the year has been extremely encouraging and with demand set to rise further throughout summer 2017, our outlook for the year is extremely positive,” Mr Ballester said.