A real estate project in Bogotá, Colombia, Torre Barcelona, a 28-story building with nearly 28,000 square meters of space, has become the subject of legal disputes between property owners and the operating firm. The project, intended for rental to students in a hostel-style arrangement, was reportedly spearheaded by Catalan businessman Manuel ‘Manel’ Grau Pujadas, who has ties to First Lady Verónica Alcocer.
The development, construction, and administration of the building involved Catalan entrepreneurs with connections to President Gustavo Petro and Alcocer. According to reports, Grau initially showed interest in the land where the tower was built, while Grupo Solerium handled the construction. Companies linked to Grau were responsible for marketing the residential units, initially offered for around 140 million pesos.
Barcelona Export Group, founded by Xavier Vendrell, was also involved in the early stages, with Vendrell confirming his involvement in promoting the project until 2019, when he sold his stake.
Sales began around 2016, and the building was delivered for operation in 2020, with the condition that the same administration remain in place. The operating contract was awarded to Smart Rooms Colombia S. A. S., which later became The Spot Centro S. A. S. This entity assumed management of the building and the trust created to receive and distribute funds to investors. Reports indicate that Grau initially appeared as the legal representative and owner of the operator, with control over the trust.
Disputes arose as time went on. Property owners, represented by the firm Defensa Inmobiliaria, which represents owners of over 220 units, claim that the projected profitability – 7.92% annually over ten years – was not achieved, with actual returns reportedly closer to 3%, despite estimated annual sales of around 10 billion pesos.
they are preparing criminal complaints against Smart Rooms, The Spot, and Grau himself, alleging offenses such as fraud, disloyal administration, and breach of trust. They have also filed actions with the Financial Superintendency against the trustee, the trust, the operator, and the promoting and construction companies, citing alleged irregularities in the establishment and management of the trust agreement.
The operator, however, claims it was forcibly removed from administration on January 8th, describing it as a “forced takeover” by property owners. They assert that the situation affects 143 student residents and have filed police complaints and criminal charges related to the events. Property owners, conversely, maintain that it was a peaceful recovery of possession.
As of now, Manuel Grau has not publicly commented on the case.
The situation highlights the risks inherent in real estate investments, particularly those structured as trusts or involving complex operating agreements. The discrepancy between projected and actual returns is a central point of contention, raising questions about the due diligence conducted by investors and the transparency of the project’s financial projections.
The allegations of fraud and mismanagement, if substantiated, could have significant legal and financial consequences for all parties involved. The involvement of individuals connected to the First Lady adds a layer of political sensitivity to the case, potentially increasing public scrutiny and pressure for a thorough investigation.
The legal actions taken by the property owners demonstrate a growing trend of investors seeking recourse through the courts when investment returns fall short of expectations. This underscores the importance of clear and enforceable contracts, independent oversight, and robust regulatory frameworks to protect investor interests.
The case also raises questions about the role of fiduciaries in managing investment funds and ensuring that they are used in accordance with the terms of the trust agreement. The allegations of irregularities in the trust’s constitution and management suggest a potential failure of fiduciary duty, which could lead to further legal action and penalties.
The outcome of these legal proceedings will likely set a precedent for similar real estate investment disputes in Colombia and could influence the way such projects are structured and managed in the future. The case serves as a cautionary tale for investors, emphasizing the need for careful due diligence, independent legal advice, and a thorough understanding of the risks involved before committing capital to complex investment schemes.
The accusations leveled against Grau, Smart Rooms, and The Spot, if proven, could also have broader implications for the Colombian real estate market, potentially dampening investor confidence and leading to increased regulatory scrutiny of similar projects.
