Tri Buy Cherry Pie Talk of a potential Pacha sale was first noted in this report on the sale states that last year “Pacha announced Pacha Group Sold office following a report by Ibiza based journalist Nick that it had a turnover of €78 million, with €11 million in Clayton, several months before the rumours became net profit. It expected that to grow by 8-10%. About two widespread conjecture. -thirds of its turnover comes from nightclubs and restau- For 350€ million Nick talked of a potential buyout by a then interested rants, with most of the rest coming from hotels, with a Equity Investment Group Trilantic are reported Chinese investment concern. As it has materialised the rather smaller contribution from fashion and franchises. to have purchased the Pacha empire. business is indeed to be passing into a private investment He goes on to say that Pacha also said last year that it Sale includes the Pacha, Destino and Lio clubs equity group. planned to open 85 new establishments, including hotels and the Pacha Hotel in Ibiza, all worldwide Pacha The company, Trilantic, are said to be buying the entire and resorts, restaurants and nightclubs before 2025. venues, and all merchandising businesses. Pacha group. In the context of shareholder satisfaction it Then, last week, Owner Ricardo Urgell talks publicly of his views is unlikely the Pacha pie will be sliced up. Nick Clayton’s The Sunday Times reported that the company would on Ibiza, the sale and the future. focus on opening 25 hotels and resorts in Britain, Spain, France, Italy, Brazil, Argentina, Mexico, China and Ja- pan. In a recent interview with the Diario de Ibiza, owner Ricardo Urgell appears ready to say farewell to the brand, "It hurts a lot to sell Pacha in such a sweet mo- ment," he said. "I feel like an honest person trying to do the best possi- ble," Urgell said legacy on the island. "We have to want more for the island, invest in it, appreciate it and love her, so that we're not only benefitting ourselves. People need to promote projects to improve Ibiza. It's important that the island does not lose the magic." "The island has spoiled areas that will be difficult to re- cover. “If we continue at this pace, it will eventually move to the north of the island. Music should be con- trolled (in its legal space).
(Continued on page 3) The Ibizan, Thursday 20th October 2016, Issue 849 links are live in the online edition at theibizan.com Page 2
'Put The Sporting Into News Sports At School Age' The Council of Ibiza has organised the first conference 'Promoting Sporting Values in Schools', which will take place from 21 October to 15 December 2016 at the Cultural Centre of Jesus, and are aimed at all partici- pants in the Ibiza sports world interested in educating values in sport at school age.
The program 'We put values in sport at school age' "health tourism, wellness and beauty is a aims to reduce behaviours contrary to Fair Play in Weather A Destination For product that we can offer during all sport among young people through lines of action months of the year, it is an all year prod- o focused on intervention with athletes, the parents of Thursday 21 Health, Beauty & uct ". athletes and the social fabric. Wellness The Council of Ibiza has shown full sup- Audi In Ibiza port to the new group -Ibiza Tourism Council President, Vicente Torres be- Association, Health, presented today at a lieves Ibiza can open the door to business ceremony with the president, Vicente tourism and conventions of major global Friday 21º Torres, and representatives of the four brands, "It means a lot to Ibiza a prestig- developers: Fiesta Hotels Resorts, Poly- ious brand like Audi has chosen the is- clinic Nuestra Señora del Rosario, land to present their new models. We Eiviluxury aesthetics clinic and BFIT must use it well for the future because fitness. It is an association that aims to other brands Ibiza can choose to make promote health tourism, the health and their conferences, congresses or their beauty of our island and will include all presentations," This is only one of many specific actions planned during o Saturday 22 those companies or professionals that in The Audi dealer’s worldwide convention this term, together with the Governments and councils one way or another, can be linked to this will be held in Ibiza from next Monday of the Balearic Islands in collaboration with the Univer- branch of tourism. until 1 November. The locations are the sity of the Balearic Islands and Sports Federations of The president of this association is David Fairgrounds, where the cars will be pre- the Balearic Islands. It was also highlighted the valua- Medina, representative of the Polyclinic sented, the Parc de Sa Coma for track ble support and participation of the Education offices of the Rosary, and the Secretary General driving, and Heart for the evening event. and Ibiza CEP for physical education teachers to active- is Christopher Martos. The event also Audi expects an attendance of approxi- ly participate. Sunday 23º was attended by José Luis Benitez, rep- mately 2,700 CEOs Audi dealers and Finally, the Council of Ibiza encourages anyone who is resentative of Fiesta Hostels & Resorts, importers from around the world, with a involved in sports to participate in this conference, in- Ruth Ripoll of Bfit and Daniel Terrace, maximum of 200 guests per day. Audi formation and registration can be found on the website. www.conselldeivissa.es Eiviluxury Clinic. will reveal the following vehicles: Audi The president has congratulated and of- Q2 Dynamic Experience in versions S fered the support of the Council, with the Tronic 1.4 TFSI and 2.0 TDI Quattro S objective to extend the tourist season and Tronic, the R8 Spyder and S5 Coupé Monday 24º avoid the two or three very strong Dynamic Experience. months. The President stressed that
obtaining of a public car park. Cala De Bou’s The CIOTUPH- also has already ap- proved the transcript for the Declaration New School of intangible cultural attractions, the Tuesday 24º The Insular Committee of Planning, Ur- knowledge and the procedures of the tra- banism and Historical Heritage ditional dry-stone on the island of Ibiza. (CIOTUPH-) has approved the specific The statement is intended to help prevent amendment number 4 of the Rules Sub- the disappearance of this traditional pro- sidiaries of Sant Josep de sa Talaia, cedure that forms part of our cultural which will get a plot of 8,100 square heritage and determines, to a large ex- o metres allocated to the new school Cala tent, the cultural landscape of the island. Wednesday 24 de Bou. The suitability of the modification CIOTUPH- has also reported that a total is based on the need to expand public of four requests concerning housing con- allocations, as it is the new school, in struction in protected areas have been addition to improving the road connectivi- declined, in accordance of Decree-Law ty between urban roads and the existing 1/2016 of urgent urban prohibiting these roads, as well as infrastructure and the uses in natural areas of special interest. The Ibizan, Thursday 20th October 2016, Issue 849 links are live in the online edition at theibizan.com Page 3 News
Now, and way back when. Above left the famous Pacha palmed entrance. Above right the original building. Below left, almost smell the money, the Pacha Group Sold For 350€ Pacha brand extends far beyond the nightclubs for which it is famous.
(Continued from page 1) Urgell confirmed that Pacha's finances were transparent and all in order. Talking of his future, he concluded that he has many ongoing projects, including the “We cannot have music everywhere.," he said when possibility of new hotels and a new venture in Cuba. asked his opinion on the island's future. He also explained his distaste for party boats in the effort e have to want more for the island, invest in it, appre- to preserve the island's natural elements. ciate it and love her, so that we’re not only benefit- No interview would be complete without asking “W ting ourselves. People need to promote projects to about all of the recent inspections of the super clubs, improve ibiza. It’s important that the island does not lose the magic.” including Pacha. Ricardo Urgell
been released regarding the level and type of drug abuse cases being treated on the island. Attending was Jordi Puiguriguer, a toxicologist and Balearic president of the Spanish association of accident and emer- gency medicine (Semes). He was joined by María de los Ánge- les Leciñena, head of the Can Misses emergency department and also Pitiuses representative to Semes. Polydrug Use
They revealed that more than 60% of those being treated for drug related issues at Can Misses emergency department had tested to show they had taken more than one substance. This polydrug usage was found to be far higher in Ibiza than other areas. Testing is being undertaken as part of a study by Mallorca’s hospital de Son Espases. Ketamine Ibiza also has a far higher level of Ketamine usage. Results from Ibiza found 20% of patients to have consumed Keta- mine, compared to just 1% in Mallorca. Toxicology reports released this week showed the Brit had Ibiza Drugs; "No Worse The most common drug identified was Ecstasy, identified in indeed taken the popular new drug. 90% of the 150 cases analysed. But head of toxicology, Jordi Puiguriguer said that it was an Drug abuse accounts for 3% of all cases dealt with at Ibiza’s isolated case and rejected the idea that the notorious party Than Mallorca or Ma- Can Misses hospital. island was becoming a hotbed for new experimental drugs. Chemical Submission Doctors presenting a report on drug-taking in Ibiza this sum- Some of those included in the test were patients stating they mer refused to say how many cases had been reported to the drid, But 20 Times More had been drugged as a result of attempted rape or robbery. police but confirmed the allegations of "chemical submis- This ‘chemical submission’ is considered an increasingly com- sion" had been taken seriously . mon problem. On the closing weekend of the Ibiza party season, six were Ketamine" Both Puiguriguer and Leciñena stressed that though Ibiza’s treated in hospital. Half were Brits. Can Misses deals with 6 cases of drug abuse per day. drug abuse treatments were different in nature, overall the Flakka has grown in popularity worldwide, particularly in level of cases is not considerably greater than areas such as Florida where it is sold cheaply on the streets 60% of cases have tested for multiple drugs Mallorca, Barcelona, Bilbao and Madrid 20% of cases in Ibiza test positive for Ketamine In a presentation by two of the Balearics most senior emer- gency services and toxicology staff, detailed information has In The UK Press In an unsurprising move the UK press overlooked the ma- jority of the presentation by Puiguriguer and Leciñena, choosing to cover only one item; that of the confirmed use of so called designer drug ‘Flakka’ . This report by the Daily Star Naked Ibiza Brit in 'violent' rampage had taken terrifying new designer drug A British tourist found naked and “extremely violent” in a popular tourist resort in Ibiza was high on a danger- ous new designer drug, according to doctors. The Brit – who has not been identified – was pictured lying on the ground handcuffed in shocking scenes in the popular resort of San Antonio in September. He was arrested by police because of alleged aggressive behaviour and “violent attitude to people who crossed his path”. He was restrained in the area between Piscis Park hotel and a nearby bus station, and later taken to hospital in an ambu- lance. Police suspected he had taken legal high Flakka, which causes intense anger, panic attacks and paranoia. It’s a variant of the infamous synthetic substance "bath salts, and has been dubbed the “insanity drug” due to its effect on users. Users have had sex with trees and even believed they were the mythical god Thor in bizarre hallucinations. At its worst, it has been linked to several terrifying "zombie" crimes in which those under the influence have killed in a fit of rage.
The Ibizan, Thursday 20th October 2016, Issue 849 links are live in the online edition at theibizan.com Page 4 Property News Second-Home Market gets a Spring Clean The Second-Home & Resort Industry Observatory (SHARIO) has signed a collaboration agreement with the Spanish Land and Business Registrars Association aimed at improving the transparency of a market that sustains an important industry for Spain. Under the agreement, the Registrars Association will provide the Observatory with quarterly figures on home sales to for- eign buyers for expert analysis in market reports for the sec- ond-home & resort industry in Spain. A better understanding of foreign demand for property in Spain will help an industry that, despite its size and strategic importance to Spain, has Fancy Your Very Own never been organised or well understood. Foreign buyers invest billions of euro in Spanish property Balearic Island? ties, in order to ensure that only completely Five Million & It’s Yours oreign demand for property in Spain reached valid documents can be registered. The purpose It is not often Island’s come up for sale, but if you have a a record of 13.18% of the Spanish housing of the Land Registry is to provide legal security spare 5,250,000 euros hanging around this could be just to legal transactions concerning property rights the job. market in 2015, with close to 46,000 sales” and publicity concerning ownership and charges It goes under the name of Colom Islet, has an area of 58 “F of the property registered. hectares of land, and is situated just 200 metres north off the coast of Menorca. each year, supporting an industry that provides hundreds of In actual fact, the islet belongs to the municipality of thousands of jobs, and has a big impact of Spain's image Mahon, the capital of Menorca, and forms part of the abroad. According to a recent study by the Provia developers’ What’s Your Best Offer? natural park of s’Albufera des Grau. It is actually the larg- est of a small batch of islands that surround the larger association in Alicante province, the industry supports Don’t know where to pitch your offer? Leading Spanish island. 200,000 jobs in the Valencian region alone. Property Portal Idealista have published statistics on Foreign demand for property in Spain reached a record of The islet possesses just a handful of buildings that in- the amount offered for property compared to its listed clude a 100 square metre main residence dating back to 13.18% of the Spanish housing market in 2015, with close to price. 46,000 sales, according to data from the Registrars. Growing the 18thcentury. This has six bedrooms and a 30 square Despite the fact that the property market is in a much more metre annexe that serves as a storehouse. There’s also a foreign demand between 2010 and 2014 helped to mitigate positive state at the moment, and the number of sales are the Spanish real estate crisis, and foreign buyers have played wooden cabin that can also be lived in as it contains two going up, as are property prices in many areas, the reality of bedrooms, a kitchen, living room and bathroom. a key role in Spain’s recent housing market recovery. it is that prospective buyers are still asking sellers for sub- “An industry so big and important to Spain needs better mar- With regards to outside space there are two white sandy stantial discounts on the sale price of their homes. beaches, a boathouse to house vessels of up to 20 square ket information to avoid repeating the mistakes of the past, In many cases, these discounts are as much as 20% or even like overestimating demand and building too much,” says metres, plus remains of the old miners’ house. more depending on the autonomous region that the property And if you haven’t got five million no problem, thanks to Mark Stücklin, Director of SHARIO. “Good market analysis is situated. helps reduce risks, improve investment decisions, and in- our ‘what’s your best offer’ article left, you should be Statistics have revealed that on average in the month of July, able to shave a cool million off the price. No need to crease the confidence of buyers and investors in Spain.” prospective buyers were offering approximately 20.9% off For more information contact Mark Stücklin the purchase price fixed by the property owner. thank us, just send cash ☺ [email protected] This figure is slightly less than the average discount wanted last year, when buyers were offering 21.6% less. Country, at 19.7%. About the Second-Home And Resort Autonomous regions Madrid is also the region where buyers have most reduced Industry Observatory (SHARIO) The biggest difference between the amount of money the amount of discount asked for off the sale price. This offered for a property and the price being asked for by the could be an indication of the fact that property prices are Launched in the Spring of 2016 with sponsorship from seller is found in the region of La Rioja. Here, those wanting rising and the offer of property available is reduced. This is industry leaders, SHARIO is a think-tank and information to purchase a home are offering around 23.6% less than the followed by Andalucía and Castilla-La Mancha. hub for the Spanish second-home & resort industry com- sale price of the property. La Rioja is followed by Cantabria (- However, there are seven autonomous regions where pro- mitted to raising professional standards and transparency 23.5%), Murcia (-22.7%) and the Valencia Region (-22.6%). spective buyers are offering even less money (bigger dis- in the business. SHARIO is sponsored by Iberdrola Inmobili- Madrid, on the other hand, is the region in which the amount counts) than they were a year ago. The list is headed by Can- aria, Acciona Real Estate, Neinor Homes, Tinsa, KPMG & La of money being offered and asked for is closest, with approx- tabria and followed by Asturias, Galicia, and the Balearic Is- Zagaleta. lands. Large cities About the Land and Business Regis- n average, prospective buyers are There is also a big difference in figures offered and asked for in Spain’s largest cities. In Cuenca, for example, buyers trars Association of Spain offering approximately 21% under are only asking for a discount of 10.9%, while in the cases The Spanish Registrars Association is a Public Law Corpora- of Palma de Mallorca, Alicante and Jaén, the figure is tion. All the Land and Business Registrars in Spain are the listed purchase price” more than 25%. members of it. These registrars are civil servants, attached “O Information supplied with kind assistance of On The Pulse to the Ministry of Justice, and legal professionals responsi- Of Spain—a great resource for legal and property matters. ble for monitoring the legality of documents authorized by imately 16.5% lower than the asking price being offered by http://www.onthepulse.es/ notaries or issued by judges and administrative authori- purchasers. Madrid is followed by Navarra and the Basque
The Ibizan, Thursday 20th October 2016, Issue 849 links are live in the online edition at theibizan.com Page 5 Buying Property in Ibiza Buying property is serious business ...
Buying property abroad comes with the additional challenges of an unfamiliar legal system and language barriers.
Buying property in Ibiza is more
challenging still. Demand and val- sented is extremely important. I try to keep my client’s appli- not see the client until signing the mortgage because during cations as simple as possible so that I ensure a quick approval the whole process we are in contact by email and over the ues are unique to the Island and from the lender. phone. I normally spend about 2-3 hours speaking with the The Spanish banks offer fixed rate mortgages and variable lenders and making public relations contacts with real estate the market will not necessarily re- rate mortgages and the client has to decide with my help agents which is very important for my job. which is the best option for him. There are no interest only For the other 4 to 5 hours working on emails and processing flect general economic trends options available now, but as the interest rates are actually information received from clients. very low and the euribor about one year is in negative, the My work consists in finding out the personal situation of my affecting Spain nationally. monthly payment is tolerable. clients first, then helping the banks to understand the appli- cation from my clients and after that finding out the best Will Brexit affect mortgages in Spain? option for my clients as I know where best to place a client A very serious business indeed, and one Spanish Banks for many years have granted mortgages in for the best result. where the clever money will see the benefit Spain to most nationalities so tech- nically UK residents should not be of putting your financial interests in the affected by the leave vote. As the enerally speaking, the client needs a mini- biggest buyers of second homes in hands of a specialist. Spain it is difficult to imagine a mum deposit of 30-40% of the purchase price. situation where Brits are barred Bettina Lorenz of Balearic Mortgage Ser- from owning one or being able to They will also need further funds to cover the apply for a mortgage in Spain. The “G vices knows the Ibizan property market non-resident Spanish mortgage taxes and expenses involved in the purchase – an extra 12- better than most. market currently is such that, only 14% will usually cover the additional costs.” countries on the Bank of Spain watch list , which includes those Here she gives the benefit of her 15 years countries where due diligence on affordability and for money laundering cannot be undertaken, find it impossible to get a What about floor clause? experience in addressing some of the most Spanish mortgage, and the UK will certainly not fall into this As Reuters reported in April 2016 a Spanish court ruled that important factors for anybody looking to category despite the referendum result. the country´s banks including leaders Banco Santander and Where things may change is on the level of risk willingness Caixabank can no longer sell mortgages with so-called floor buy property in Ibiza. and flexibility the Banks in Spain may face mortgage applica- clauses. The court said banks had to repay customers what tions from a UK applicant. Spanish Banks may also look to they had lost since May 2013, when Spain´s Supreme Court increase pricing to reflect the higher risk they feel they are declared these mortgages, who’s rates cannot fall blow a Are Spanish banks currently willing to lend? taking in granting a loan to someone living with so many benchmark, were invalid if they had not been presented The Spanish banks are much more willing to lend now than unknown issues regarding to future laws and fiscal stability. I clearly. they were during and immediately after the mortgage crisis. have spoken with the Spanish lenders and at present this is As Bloomberg informed in July 2016 the Top EU court will The Spanish mortgage market is actually very competitive., just speculation. The key impact on the terms and conditions rule the coming months on the Spanish mortgage case. Lend- however the banks are still cautious about the non-resident for non EU residents is not getting 70% of the purchase price ers including CaixaBank and Banco Popular have removed the clients they will lend to. Generally speaking, the client needs as a mortgage, and in consequence means that the banks limits in their mortgage contracts and have provisioned for to have a deposit amount of minimum 30-40% of the pur- look to keep loan to values at 65% or below for all new appli- legal risks linked to the possible elimination of the clauses. chase price of the Ibiza property for sale, plus must also have cants who hold a UK passport. Although no Spanish bank at CaixaBank said in July it estimates it would have to provision further funds to cover the taxes and expenses involved in the present have actually changed its terms and conditions as an extra 750 million euros to cover for possible impacts if purchase – I usually advise to calculate between 12-14% to standard, they´re weighing up being more cautious at this retroactivity is granted. It has already provisioned 515 million cover these expenses. point in time until the total situation on future legislation euros. becomes clearer. Because the second key consideration for the Banks in Spain is that there is no clear view on what See Below for Bettina’s contact details. Link is live in effect on the fiscal stability of the UK the vote will have. the online edition There is no way of knowing at this point whether the exit http://balearic.mortgage/ from Europe will have a long term positive or negative affect on the economy and if so to what level.