Hotel chain, Riu, is negotiating the sale of 15,000m2 of retail space in their «Edificio España» skyscraper to private equity firm, Corpfin.
These negotiations have started as a result of Riu’s falling out with Grupo Baraka with whom they had reached an agreement for the sale of the retail space. Riu bought the centrally located property from Grupo Baraka in June 2017 for €272 million and had agreed to sell the retail space back to them post-refurbishment. Riu has however cancelled the agreement that had been reached with Grupo Baraka.
Baraka, which is chaired by Alicante-born businessman, Trinitario Casanova, has announced a lawsuit against the Mallorcan hotel chain. Casanova assures that in June of last year, both parties signed a contract by which Baraka Renta would become the owner of the commercial area, once progress had been made on the refurbishment.
In view of this alleged breach of the contract, Trinitario’s company indicates that it has decided to take the issue to court and has also requested that the works to refurbish the building are halted because «they are not being carried out according to the agreed project and the corresponding reports.» Baraka points out that Riu is not complying with the plans foreseen in key aspects such as the reinforcement of the structure of the property, as evidenced by the resignation of the facultative management of the works.