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Ghost Airport Rises Like Phoenix; A good indication of the recovery unfolding
Topic Started: 31 Jul 2015, 12:24 PM (5,991 Views)
Andrew Judd
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Bardon
1 Aug 2015, 12:33 AM
Yes this is true but its safe to say that no investor is going to come up with 28 million euro by mid September therefore this deal is as good as done.
Previous auctions had reserves many times higher. Now we all know it is available for a song you would imagine there might be a bit more competition for what could be a bargain for the right kind of buyer.
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Bardon
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Not so much as being available for a song as its not a matter of just beating the low bid. The judgement was that the current low and only offer will be accepted provided that a higher offer of not less than 28 million euro ie 70% of the valuation is received by the 15th September and that the current bidders additional undertakings to clean up the site and convert it to a freight facility are honoured. It's highly unlikely that a new bid of that magnitude will be forthcoming.
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skamy
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Loki
1 Aug 2015, 01:13 AM
I'll take that to mean you don't know jack-shit about this airport, or why the original operator went bankrupt. It's because it's location is no use to anyone.

The closest town is population 75,000. There is nothing in the area to attract tourists. It has no industrial or commercial centre for business traffic. It is useless for freight because it can't compete with Madrid-Barajas.

But tell me more about your "land-values" theory.
You have no vision at all Loki. Spain is a massive country located centrally in Europe, when the European economies recover this could be a great distribution hub for air delivery from China and the East and on onto the rest of Europe. They can cut major costs by avoiding the big airports and their fees and high pricing.

You are going to grow old into some miserable old geezer that is for sure - you find fault with everything. You gotta lose the doomster rapp, it will date you terribly very very soon.

Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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Andrew Judd
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Bardon
1 Aug 2015, 12:33 AM
Loki, its pretty obvious that you dont really know that much about anything except petulance.

Yes this is true but its safe to say that no investor is going to come up with 28 million euro by mid September therefore this deal is as good as done.
So there was no reserve and bidding was via sealed bids and no guarantee the sail will go thru?

Whatever the outcome I can see plenty of opportunities for the new owners to play safe and do nothing for years 'as discussions continue' and the situation in Europe, as well as the situation on the ground in that locality clarifies. Apparently where the airport is sited is one of those places in Spain where a 'baron' makes many of the decisions, so presumably to operate that place you will need to deal with him and do all the usual things required to make him happy, where already he has lost face by having such a hugely expensive project become a total fiasco. Already I can see plenty of reasons why nobody outside of the region would want to buy that airport.
Edited by Andrew Judd, 1 Aug 2015, 03:08 PM.
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Bardon
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Lets not get all half cocked and angrily resume flying off the radar whilst doing a smarty pants Loki type death spiral rant, best we leave that to the expert.

The last bid is subject to an order that it is binding providing that its value add terms are met and that a higher bid of at least 28m euros is not received before the 14th September. If not, the sale and development goes ahead. If the basement bargain deal goes through the development must proceed. We can check back in here mid September to see if the sale goes through and take it from there.
Edited by Bardon, 1 Aug 2015, 08:47 PM.
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newjez
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skamy
1 Aug 2015, 08:46 AM
You have no vision at all Loki. Spain is a massive country located centrally in Europe, when the European economies recover this could be a great distribution hub for air delivery from China and the East and on onto the rest of Europe. They can cut major costs by avoiding the big airports and their fees and high pricing.

You are going to grow old into some miserable old geezer that is for sure - you find fault with everything. You gotta lose the doomster rapp, it will date you terribly very very soon.
Last time I looked it was on the edge of Europe?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Loki
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skamy
1 Aug 2015, 08:46 AM
You have no vision at all Loki. Spain is a massive country located centrally in Europe, when the European economies recover this could be a great distribution hub for air delivery from China and the East and on onto the rest of Europe.
Seriously? Spain is currently experiencing one of the worst recessions since the end of the civil war. The Madrid-Barajas freight terminal will be fighting tooth and nail for every piece of business they can get, and they have the advantage of being in Madrid, a city with a metropolitan population of almost 7 million, with freeways connecting it to the rest of Europe. Ironically, to get to Ciudad Real you would need to take the E90 and E5 that practically run through Madrid.

Oh and by the way, when I studied geography, Switzerland was in the centre of Europe and Spain was the arse end before you get to Africa.
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They can cut major costs by avoiding the big airports and their fees and high pricing.
Right, and drive another 200 kilometres past Madrid. Oh, and another thing, 98% of freight from China and the East comes by ship, and Ciudad Real is right bang in the fucking middle of Spain.

There is however a reason to pay 20,000 Euros for this airport. It probably has at least 200,000 euros worth of aluminium siding in the terminal. The jet bridges alone cost around 200,000 euro each, but knowing the Spanish, they have probably been sold clandestinely already. Not sure what the conditions of sale are, but nobody is planning to run this as anything other than a small regional airport after asset stripping the best parts of the terminal and equipment and selling it.

Vulture capitalism at it's finest.


“Talk sense to a fool and he calls you foolish.” - Euripides
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Andrew Judd
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Bardon
1 Aug 2015, 08:29 PM
Lets not get all half cocked and angrily resume flying off the radar whilst doing a smarty pants Loki type death spiral rant, best we leave that to the expert.

The last bid is subject to an order that it is binding providing that its value add terms are met and that a higher bid of at least 28m euros is not received before the 14th September. If not, the sale and development goes ahead. If the basement bargain deal goes through the development must proceed. We can check back in here mid September to see if the sale goes through and take it from there.
How do you force a developer to proceed against their wishes?
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Bardon
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Andrew Judd
2 Aug 2015, 02:48 AM
How do you force a developer to proceed against their wishes?
Bonds, bank guarantees, irrevocable letters of credit and the like.
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Andrew Judd
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Bardon
2 Aug 2015, 05:11 AM
Bonds, bank guarantees, irrevocable letters of credit and the like.
I see from the Guardian Tzaneen International, a Chinese company set up in March with just €4,000 in capital,

We will have to see how it works out.
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