Fractional & Repossessed Property Opportunities
April 10th, 2009
Several experienced agents in the Costa del Sol are starting new ventures in response to the recession, with fractional and distressed sales in particular providing opportunities.
New sales company Property Revolution is being managed by Richard Diaz, sales and marketing director for The Fractional Ownership Consultancy, while David Honeyman, formerly of Andalucian Dream Homes (ADH), is acting as a consultant to the firm.
“We are entering quite exciting times and carrying on with the same things won’t work,” Honeyman told OPP. “I previously worked with off-plan properties, but off-plan investors no longer exist. People have realised that overbuilding and speculation are not good for anyone. I believe that fractional sales provide a lot of opportunities.”
Honeyman remains a non-active partner in ADH but he stressed the company is separate. “I’ve got some things to tie up but Property Revolution needs a fresh start and is not an offshoot of ADH. Although it has a lot of experienced people it is a new company with new investment.”
Another established name moving into a different market is Mike Liggan, former CEO of developer MRI Overseas Property. He started Marbella-based agent DCC International Property at the end of last year. “Our focus is on bringing deals to clients and we are offering distressed and discounted properties, some with 40-50% off,” he said.
Liggan’s new firm is occupying offices once used by MRI. However, Liggan told OPP: “It’s a completely separate company, something new and fresh. Although we occasionally sell MRI property in Portugal, DCC is mainly focusing on Spain.
“It’s still pretty tough and the market is down. Buyers are willing but one thing is holding them back: they need to feel buying is the right thing to do and not be driven by the media. We want to get that message out.”
Repossessions are also opening up new areas for existing companies. UK-based agent Azure Property International, in partnership with agent Casacalida, is selling repossessed properties acquired by one of Spain’s biggest mortgage providers, CAM bank.
Azure’s managing director Geoff McClure told OPP: “The recession is sad but for some it also offers opportunities. We have never sold in Spain before and we probably wouldn’t have if it had not been bank property. It means we can ensure ethical practice because people buy directly from the bank. Transactions are transparent with no hidden costs. We just charge an admin fee of 5%.”
McClure also highlighted the future prospects created. “If this works, we’ve now got a network of contacts and are building relationships, which creates sales opportunities.”
Adding that the scheme may not work in other countries, he said: “Spain is unique because of its overstock and everything is marketed and sold centrally. In somewhere like Florida it would be more complicated because of regulation.”
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