One of the coast’s leading developers has halted construction on several of its high profile developments.
According to Press reports Marbella-based home-builder Grupo Otero is in financial trouble, which could have implications for those who bought off plan from the developer.
El Confidencial reports that Grupo Otero has defaulted on payments to suppliers causing building work to stop on the company’s residential construction sites on the Costa del Sol.
Cash-flow problems have forced Grupo Otero to stop paying its contractors and suppliers, with some leaving half-finished construction sites. Grupo Otero is said to be already behind on payments of millions of euros it owes to its business partners, which could lead to financial ruin for suppliers and contractors.
In Manilva, Councilor for Town Planning, Marcos Ruiz, has visited at the two projects that Otero was constructing. Manilva’s mayor stated “since we found out that the Otero company had not completed on payments it had planned for its suppliers, we have been monitoring the evolution of this problem on a daily basis”
Marbella-based Grupo Otero started life as a builder on the Costa del Sol in 2017, and quickly expanded into luxury second-home development Grupo Otero claim they are “leaders in the development of luxury homes on the Costa del Sol” with more than €250m invested.
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