On March 26 Laguna Residence complex from Tei district will be put up for auction for the third time. The starting price has been set 25 percent lower this time than it was for the first two auctions, which produced no bids.
The plot is over 25,000 sqm, and the new 500-flat residential scheme built on top covers roughly half of the plot. The first auction took place on January 9, with a starting price of €24.6 m. The second auction was held on February 21, at the same price. The project was originally supposed to be finished in 2009, but construction was halted after the two Spanish developers, GEA 21 and Prasa, had a falling out. In the summer of 2010 the project was taken over entirely by GEA 21, which obtained a grant of €10.5 m from the bank La Caixa. Work then stopped again, and a new deadline later this year was set. To get financing from La Caixa, the Spanish company representatives said they have invested 30 million euros of equity in this project. Representatives of the Spanish company claim to have invested €30m of equity into the project.
