It´s Paramount Murcia chinese whispers again

Paramount Murcia

2011-01-20

It´s Paramount Murcia chinese whispers again It was interesting to read in one of the free papers over the weekend that "banks greed forces Paramount to look elsewhere. Paramount´s multi million euro investment project to build a theme park with movie studios at Condado de Alhama is unlikely to happen. " It goes on to say that " The Minister for tourism, Alberto Cruz, has expressed his disappointment that an agreement in price has not been reached as this will slightly delay the project..."

It also says that Jesus Samper is confident that "once the price is agreed the project will not take long to get underway."

It´s important just to clarify a couple of points as you know what chinese whispers is like and it is destructive for all of us that the rumour is now flying around that "the Paramount theme park has been cancelled. "

Well, who knows, if investors aren´t found it may well be one day, which is why we´ve insisted so forcefully in editorial rants that prospective investors in the region should buy because houses are good value, not because, as one of two unethical agencies are claiming, "Paramount studios are building a theme park in Murcia and you have to buy now before property prices go through the roof."

So let´s start with the first point.

Paramount studios are not building a theme park here. The project is a private enterprise, given impetus by the Region of Murcia, but will be funded entirely by private investors, not Paramount studios. Paramount licensing have granted a provisional license to the Santa Monica group, headed up by Jesus Samper, with a duration of one year to enable the project to be formed and marketed to investors. They are working with the investment team to prepare the design so that it can be marketed to potential investors, a project which is not yet complete, but will soon be revealed. There are still people who believe this is being financed by Paramount studios, as this article seems to indicate, but it´s not.

IF it happens depends entirely on whether private investment can be found to fund it, which is why it is being presented this week as one of the star products at the FITUR tourism fair in Madrid.

Second point.

Due to intense media pressure and the necessity to create some sort of stability to the project, it was announced during the visit of Paramount Executives that Alhama was the "preferred" location, note preferred. It´s surprising that such a commitment should have been made without having a signed option on the selected land, but it can only be assumed that perhaps the inclusion of the vendors in the project team was under consideration. At no point has it been made public which of the plots of land on offer in Alhama was the preferred location, that speculation has come only from the media, mainly La Verdad who seem to have a hot source close to the project. It has always been said that a number of options are available, and are being considered. Whilst the most logical choice was always the land owned by the IRM group which formerly belonged to Polaris World, as it constituted one large plot of over 5 million metres, the initial scale of the project being hinted at was nearer to 3-3.5 million metres, with an option to extend in the future.

A business degree is not a prerequisite to work out that the moment that provisional license becomes an agreed licence and this first plot of land is committed to a firm option, that the price per metre of all available land in the nearby vicinity will increase.

The vendors know this, so of course nobody is going to sell out for less than the land WILL be worth because they know they´ll get their money come what may if the park goes ahead.

And let´s get one thing straight. If this deal doesn´t happen, it´s not because the vendors won´t sell for the right money , it´s because investors can´t be found.

Let´s face it. There are several councils desperate to get this project, all with land which is within easy driving distance of the new airport, on the main artery of trunk roads in the region, and all with plots they are keen to offer. Shortage of land is not an issue now, and is unlikely to be so in the future, shortage of investors will be the sticking point.

Yes of course it would be a bonus were the land to form part of the investment capital, less money to find from investors, but unless the owners are willing to play ball, nobody will sell cheap. Why should they. The market will turn again, not just yet.

Third point, it´s Consejero Pedro Alberto Cruz Sanchez, not Alberto Cruz.

And just to clear up all the confusion. What exactly are the plots of land around Alhama which are causing all the misunderstanding.

The first is the land owned by the IRM Group which formerly belonged to Polaris World and would have been the extension of the Condado de Alhama complex, Condado II. It´s behind Condado I and is a 5 million metre plot, accesed via other properties, namely Condado I.

This is the one plot which is big enough for not only the first phase but anticipated expansion, although of course it would mean signing an option for the future at the time of purchase.

The other options are smaller plots, all close to each other so close enough to be linked via free mini bus services etc, but not touching, as it were.

Guadalhama is on the corner junction of the RM2 and RM23, a little closer to Alhama de Murcia than the IRM plot, but is only 1.3 million metres, currently owned by the estate agency division of the Grupo Fuertes.

It´s interesting to note that just a few days ago Grupo Fuertes ( El Pozo) announced that they have acquired a stake in the Sacyr Vallehermoso construction business for 69 million euros , in order to diversify their portfolio, Sacyr Vallehermoso being involved in the construction of the nearby international airport.

Interesting.

On the opposite side of the road, but separated by the RM 2 is the 1.59 million metres owned by Desarrollo Amtrade, Sierra de Alhama Golf Resort and Intersa which should have been a golf resort but didn´t get off the ground. But again, it´s short of the 3 to 3.5 million metres which we´re told is necessary for this project. Of course, the 2 plots put together would do the job nicely, but that´s a lot of different parties to all agree without one scuppering the deal by being a bit greedy.

And again, we keep being told Polaris world are in the bidding, but we don´t have a source on that one, so can´t give you more info.

Finally. This won´t delay the project as it´s already well underway. If someone comes in with the right money it´s game on.

This weeks FITUR tourism fair is vitally important to attracting attention, it´s just bad luck for all of us that our Consejero was attacked by an as yet unknown thug on Saturday night, who may have just cost us all a lot more money than any of us could ever possibly realise.