Cayman Fund Benefits from Housing Decree
- PALMA, Spain (AP) — A real estate investment fund based in the Cayman Islands, a well-known tax haven, stands to gain substantially from a new housing decree approved...
- The decree allows for increased building density in these areas.Furthermore, it stipulates that a large portion of the 50% of construction previously earmarked for official protected housing can...
- Specifically, the Son Ximelis land is 75% owned by ERRIAP Activos inmobiliarios SLU, which in turn belongs to Saturn Holdco SA.Saturn Holdco SA is wholly owned by Luxembourg-based...
Cayman Islands Fund Poised to Benefit from Mallorca Housing Decree
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PALMA, Spain (AP) — A real estate investment fund based in the Cayman Islands, a well-known tax haven, stands to gain substantially from a new housing decree approved by the government of Marga Prohens in Mallorca. According to Més per Mallorca, Oaktree Opportunities Fund Xb Holdings ultimately owns 75% of the developable land in Son Ximelis, an area spanning approximately 119,000 square meters. Legislative changes driven by the Housing Ministry are projected to generate more than 32 million euros in additional profits for the company.
The decree allows for increased building density in these areas.Furthermore, it stipulates that a large portion of the 50% of construction previously earmarked for official protected housing can now be allocated to price-controlled properties. these properties can be priced up to 30% higher than protected housing, perhaps leading to increased profits for developers.
Specifically, the Son Ximelis land is 75% owned by ERRIAP Activos inmobiliarios SLU, which in turn belongs to Saturn Holdco SA.Saturn Holdco SA is wholly owned by Luxembourg-based OCM Redes Holdco SARL. Oaktree Opportunities Fund Xb Holdings, the Cayman islands private fund, owns 100% of OCM Redes Holdco SARL.
The holding company also owns 75% of another developable plot in Can Fontet, which is expected to yield approximately 6.7 million euros in additional profits. In total, the company is projected to earn 38 million euros more than initially anticipated before the decree’s approval.
According to Més per Mallorca, these additional profits are calculated by comparing projected earnings under the new decree with the profit expectations outlined in Palma’s General Urban Planning Plan (PGOU), approved just two years ago.
Ferran Rosa, a deputy with Més, described the situation as “a great farce.” He stated that while thousands of Mallorca residents struggle to afford housing, the government is “giving away hundreds of millions of euros to the same developers who have been speculating and building luxury homes for decades.” Rosa further alleges that the decree law has “names and surnames, and they are the same names and surnames that have brought us to where we are.”
Years prior, John Brady, then Global Head of Real Estate and portfolio manager for real estate opportunity strategies at the investment fund, stated at an international forum that “real estate investment remains attractive thanks to the appeal of available debt” and predicted new opportunities for the company in the housing sector.
Links to Ayuso and Almeida
In late 2024, the Community of Madrid, under Isabel Díaz Ayuso, approved an “affordable rental” plan.Of the 6,500 homes awarded and under construction on public land plots,2,840 were in the hands of Saturn Holdco SA,the same holding company with interests in Mallorca.
Furthermore, the company was one of three concessionaires chosen by the Madrid City Council to build and manage approximately 2,000 homes in the capital for nearly five decades. This was done through Redes 2 Promotora Inversiones 2018 IV SL, part of Culmia, a branch of Saturn holdco SA, as reported by InfoLibre in January 2024.
Cayman Islands Fund Benefiting from Mallorca Housing Decree: Your Questions Answered
Are you trying to understand the recent housing decree in Mallorca and its potential impact? this article breaks down the key details, answering your questions in a clear and concise format.
What’s the core issue?
Q: What’s the main story about the housing decree in Mallorca?
A: A real estate investment fund based in the cayman Islands, Oaktree Opportunities Fund Xb Holdings, is poised to significantly benefit from a new housing decree approved by the government of Marga Prohens in Mallorca. This decree is projected to generate millions in additional profits for the fund.
Diving Deeper into the Decree
Q: What specific changes does the housing decree introduce?
A: The decree primarily allows for:
Increased building density in certain areas.
Flexible allocation of construction towards price-controlled properties.
Price-controlled properties that can be priced up to 30% higher than protected housing.
Q: How does this decree lead to increased profits for the developers?
A: The relaxation of building regulations and the ability to price price-controlled properties higher than protected housing creates an surroundings for increased profit margins for developers, especially those with notable land holdings in the affected areas.
Following the Money Trail
Q: Which company is the primary beneficiary, and what is its connection to the Cayman islands fund?
A: The primary beneficiary is Oaktree Opportunities Fund xb Holdings, a Cayman Islands private fund. It ultimately owns 75% of the developable land in Son ximelis, one of the areas affected by the decree.
Q: Can you explain the ownership structure of the land in son Ximelis?
A: Hear’s a breakdown of the ownership structure, as outlined in the article:
Oaktree Opportunities Fund Xb Holdings (Cayman Islands): 100% owner of OCM Redes Holdco SARL.
OCM Redes Holdco SARL (luxembourg): Wholly owned by Oaktree Opportunities Fund Xb Holdings.
Saturn Holdco SA: Wholly owned by OCM Redes Holdco SARL.
ERRIAP activos inmobiliarios SLU: Owns 75% of the Son ximelis land and belongs to Saturn Holdco SA.
Q: How much additional profit is the company projected to gain?
A: The company is projected to earn an additional 38 million euros due to the decree’s changes, including 32 million euros from the Son Ximelis land and 6.7 million euros from Can Fontet.
Controversy and Criticism
Q: What are the criticisms of the housing decree?
A: Ferran Rosa,a deputy with Més per Mallorca,described the situation as “a great farce.” He argues that the decree is benefiting developers while many Mallorca residents struggle with housing affordability.He further alleges that the decree favors specific developers who have been involved in luxury home construction.
Q: How are these additional profits calculated?
A: The additional profits are calculated by comparing the projected earnings under the new decree with the profit expectations outlined in Palma’s General Urban Planning Plan (PGOU), which was approved just two years ago.
Wider Context and Connections
Q: What strategies have people in real estate been discussing?
A: Years prior, John Brady, then Global Head of Real Estate and portfolio manager for real estate opportunity strategies at the investment fund, stated that “real estate investment remains attractive thanks to the appeal of available debt”. He also predicted new opportunities for the company in the housing sector.
Q: Are there any connections to other real estate projects?
A: Yes. The article highlights links to projects in Madrid, Spain, where the same holding company with interests in Mallorca, Saturn Holdco SA, is involved.
Q: What are the specific connections between the company and the government of Madrid?
A: In late 2024, the Community of Madrid, under Isabel Díaz Ayuso, approved an “affordable rental” plan. Saturn Holdco SA was involved:
Of the approximately 6,500 homes awarded and under construction on public land plots, 2,840 were in the hands of Saturn Holdco SA.
* The company was one of three concessionaires chosen by the madrid City Council to build and manage approximately 2,000 homes in Madrid for nearly five decades. This was done through Redes 2 Promotora Inversiones 2018 IV SL, a branch of Saturn Holdco SA.
Key takeaways: A Summary
Q: What are the main takeaways from this situation?
A: The main points to remember are:
- Financial Benefit: A Cayman Islands-based real estate fund is set to gain significantly from a new housing decree in Mallorca.
- Decree Changes: The decree allows for increased building density and flexible pricing strategies.
- Controversy: The decree faces criticism,with concerns raised about who benefits.
- Connections: The company involved has links to other real estate projects in Madrid.
Q: Can you summarize the key financial details for the Mallorca project?
A: Here is a concise summary in an HTML table:
| Key Detail | Value |
|---|---|
| Projected Additional Profit | 38 million euros |
| Profit from Son Ximelis | 32 million euros |
| Profit from Can Fontet | 6.7 million euros |