Wednesday, July 6

Goldman Sachs appeals the decision of the Community of Madrid to pay them 107 million for 1,700 social flats


The conflict over the return of 1,700 social flats remains open between Goldman Sachs and the Community of Madrid. Encasa Cibeles, a company created to manage the purchase of these public homes and 97% owned by the US fund, has appealed to the courts against the resolution of the Autonomous Housing Agency (AVS) that put an end to the administrative procedure to settle the contract of sale of 32 promotions, indicate sources of the entity.

Goldman Sachs claims 198 million from the Community of Madrid to deliver half of the flats it bought for 201

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The claimed resolution, prepared by the Madrid Executive agency, determined that the Community had to pay 107 million euros to the fund for the recovery of 1,700 homes. In this way, the regional government intended to put an end to the conflict that has been open for five years.

In a statement, Encasa Cibeles indicates that “it does not share this decision regarding the foundations and criteria used”, although it is committed to maintaining cordiality with the Government of Isabel Díaz Ayuso and assures that the fund “is convinced that the AVS has taken the decision that it considers more adjusted to the Law”.

Since 2018, Justice has determined that the sale of 3,000 public homes promoted by the Autonomous Government of Ignacio González (PP) in 2013 to Encasa Cibeles is null. The magistrates have reiterated in orders and sentences that the Community of Madrid did not conveniently justify why it got rid of those promotions to make money in the worst of the economic crisis that broke out in 2008.

The fund claimed between 175 and 198 million euros

Of those 3,000 social flats that were alienated, the court determined that only 1,700 should be returned to the Community because the rest no longer belonged to the fund. To put an end to this operation, Encasa Cibeles prepared two scenarios, one in which it requested compensation of 198 million euros and another in which it claimed 175 million euros. This request has not been heard by the Government of Díaz Ayuso, which through the appealed resolution rejects the claim for damages presented by Encasa Cibeles. In 2013, the González Executive obtained 201 million from the sale of 3,000 homes.

Sources from the fund assure that the appeal presented is not motivated by economic issues, but because they consider that the administrative route is not adequate to put an end to the signed contract. “Consequently, given the technical complexity of the debate, Encasa Cibeles understands that the most appropriate and natural way to resolve this discrepancy (common, on the other hand, in contractual settlement processes such as this one) is to submit it to the decision of the courts of justice , thus providing complete legal certainty to the liquidation”, continues the statement issued by the Goldman Sachs company.

In addition, with the aim of reassuring those affected by this operation, the fund maintains that the appeal presented “does not affect the situation of the tenants of the buildings, nor their relationship with the AVS, since at no time is is questioning the return of the 1,721 homes that were taken over last September by the AVS in an orderly and efficient manner”. “AVS, as the current owner, will continue to manage them with total independence and according to its best criteria”, he concludes.

“If Encasa does not agree with that price, which we consider fair and objective, it has every right to go to court since from the Public Administration what we defend is the heritage of all Madrid,” sources from the Ministry of the Environment and Housing. In addition, they defend that the 107 million proposed are framed in a “fair price” and “endorsed by the General Advocacy of the Community.”



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