La Hoya Development - Residential Construction Delays

[Carl]

Appears that residential construction on the development ceased when Phase 1 (TM properties) was completed back in August 2025, with Phase 2 yet to start due to what appears to be difference of opinions.

https://www.informacion.es/vega-baja/20 ... 79690.html

Google translate, minus photo and videos in article:

The delay in the urbanization of the La Hoya macro-project in Torrevieja leaves the construction of 775 subsidized apartments under the Vive Plan up in the air

The City Council is demanding that the joint venture formed by Corpic and TM unblock the second phase of urbanization because the public development awarded eight months ago is unfeasible without the urbanized land.

The developer of Sector 20 La Hoya in Torrevieja, one of the largest residential areas under construction in Spain, covering 1.8 million square meters with 7,400 homes and another 100,000 square meters of commercial space, completed the first of four phases of this macro-project in August 2025. Around 45% of this area, some 825,000 square meters, was officially handed over last October, and the second phase, which includes municipal plots, could have begun since then. The City Council is the developer for the construction of more than 775 public housing units under the Generalitat's Plan Vive program.

However, the laying of roads and the provision of essential services - lighting, sanitation, green areas, rainwater, signage or water supply - so that these lands have the status of urban plots, have not yet begun.

Request

The Urban Planning Department, headed by Mayor Eduardo Dolón (PP), has formally requested that the joint venture (UTE), comprised mainly of Corpic (Urmosa) and Grupo TM, along with a third partner holding approximately 15% of the stake, comply with its legal obligations. The joint venture has responded, and the municipality must now address this response, as confirmed by INFORMACIÓN with sources within the governing team.

Time is running out. In July 2025, the regional government and the Torrevieja City Council presented the awarding of the Vive Plan in Torrevieja as a successful process. This plan, the largest in the region in terms of the number of homes, corresponds to the transfer of land for this purpose within one of Spain's most extensive urban development plans. The homes will be built using a land-for-construction model: companies "pay" for the public land they will use in exchange for transferring ownership of a portion of the homes to the City Council. The bidding process was resolved relatively quickly, considering its administrative complexity. Furthermore, an amendment to the partial plan is being finalized, legally validating an additional story for the publicly subsidized buildings.

But construction of the residential buildings cannot legally begin unless the urbanization of this second phase — which covers another 641,981 square meters—starts on-site in parallel. The deadline is April, by which time the contracting companies Abala (Hozono Global Group) and the Basque company Livanto should have the licenses they have already begun to process.

Green Areas

The joint venture justifies its refusal to begin work on the grounds that the City Council has not assumed responsibility for the maintenance of the green areas in the first phase, even though Torrevieja has had a new parks and gardens service since 2025. Sources consulted by this newspaper indicate, however, that there are some disagreements among the joint venture partners that prevent a consensus on how to approach the second phase. The development of this new phase, in addition to the subsequent third and fourth phases — which are smaller — is a legal obligation of the joint venture.

The developer invested over €30 million (including VAT) in the first phase, now completed, from which numerous plots of land for commercial and residential use have been sold. Corpic alone is marketing the 100,000 square meters of commercial space next to the CV-905 highway, in addition to residential plots. Among the licenses already granted by the City Council are those requested by land buyers such as Bauhaus and Consum. TM, for its part, with a different strategy in which it manages its own land, has developed several phases of its projects with approximately 300 homes, as well as constructing its headquarters and a commercial area.

The investment needed to address the second phase is estimated at around 12 million euros (VAT included).

[Bee]

I think I need to lie down after reading that. There are so many companies involved that my brain is spinning like a top. Who is at fault after all that
All I do know is that TM and Urmosa are A1 as far as any of their developments in Torrevieja are concerned.

Bee

[Carl]

I think I need to lie down after reading that. There are so many companies involved that my brain is spinning like a top. Who is at fault after all that
All I do know is that TM and Urmosa are A1 as far as any of their developments in Torrevieja are concerned.

Bee

Too many companies might be the root cause of the problems, but you would hope by this advance stage of the development they would have worked out who has to do what to who and when.

It is a somewhat confusing arrangement in so far as Torrevieja Council are the developer for Phase 2 but also the customer. The Council being at both ends of this phase, plus also being the local planning authority for overseeing the La Hoya development it seems the only role they are not performing is getting their hands dirty and physically building the properties.

What was not clear to me from the article was what the April deadline is about ? Expiry of planning permission for Phase 2 ?

Also noted in the article that they are adding another floor to the subsidised housing. Wonder if that will have any affect on private properties already sold or being sold off-plan ?

[Carl]

Some progress towards commencement of phase two, with the removal of one obstacle. Although the article below remains silent on what the other obstacle(s) is/are, one mentioned in the article in the first post on this thread was that there was disagreement between the joint venture partners how to approach phase two.

Google translate:

Torrevieja removes one of the obstacles to the execution of the second phase of La Hoya

The City Council is assuming the costs of the green areas in the first phase so that the joint venture can begin to urbanize the land where the 775 public housing units will be built.

The Torrevieja City Council has removed one of the obstacles to the execution of the second phase of the La Hoya plan, one of the largest residential areas under construction in Spain, with 1.8 million square meters with a capacity of 7,400 homes and another 100,000 square meters of commercial areas.

The first phase—of the four that make up this macro-project—was completed in August. Around 45% of this area, some 825,000 square meters, was officially handed over last October, and the second phase, which includes the municipal plots and is being developed by the City Council, could have begun since then. This second phase is intended for the construction of 775 public housing units under the Generalitat's Vive Plan.

However, these works cannot legally begin unless the development of this second phase—which covers another 641,981 square meters—starts construction on the site simultaneously. The deadline is this month, by which time the contractors for the public housing—Abala (Hozono Global Group) and the Basque company Livanto—should have obtained the necessary permits .

The joint venture justified its refusal to start because the City Council has not assumed the maintenance of the green areas of the first phase, even though Torrevieja has had a new parks and gardens service since 2025 with an outlay of 113 million over ten years, awarded to Actúa.

The delay had left the construction of the public housing up in the air. Now, with the steps taken at Friday's governing board meeting, the City Council is assuming the cost of maintaining the green areas of phase one, which until now had been paid for by the developer, who in turn refused to continue covering costs that are the responsibility of the municipality.

This action is taken due to the urgent need for the joint venture to complete the second phase, which includes the planned public housing units. These units were awarded to two companies months ago and are awaiting the completion of the streets and basic services. The City Council has assumed ownership of the water and energy supplies for irrigation since August 8th of last year and is proceeding with the transfer of the drinking water supply contract.

The warranty period also remains at 12 months, starting from the signing of the agreement on October 20th. During this period, the developer is obligated to rectify, at their own expense, all detected technical and vegetative deficiencies , including replacing dead trees, repairing leaks, and regulating irrigation.

Furthermore, the City Council has warned the developer that, should the deficiencies documented in the technical reports of March 9 persist, it will proceed with subsidiary execution by seizing the deposited guarantees, considering the maintenance expenses paid by the construction company since the opening to public use to date as payments on account of its urbanization obligations, the final settlement of which will be carried out after the favorable report of the parks and gardens service.

The urgency is such that it's being done even without figures on the table. The report from the municipal technicians will be ready next week, which will reveal the amount Actúa will pay to take over all the green areas in the first phase and how much the joint venture will receive for the expenses it has incurred during this time when the City Council has not assumed responsibility for maintenance.

[Bee]

Isn't that a lot of social housing in the same area. I thought there had been a move away from largescale social housing in the same area. The problem is the Council is very bad at maintaining their properties and this leads to areas becoming rundown and abandoned properties attracting drug users and general crime.

Bee