Five Spanish developers have surrendered their struggling projects to local lender Catalunya Caixa in a move to boost their financial positions. Catalunya Caixa's property arm has taken control of EUR 430 mln worth of development projects in exchange for financing or refinancing facilities.

The assets include a 50% stake in the Lusort luxury resort development project in the Algarve region of Portugal from Prasa, a 50% interest in the Hacienda del Álamo resort in Murcia, Spain from Armilar, as well as EUR 150 mln worth of historic properties which were planned to be converted into hotels, through a partnership with Barcelona-based Espais.

The move will allow Catalunya Caixa inmobiliaria to manage and complete the development projects, it said.

The bank's real estate director Eduardo Mendiluce said the group will increasingly focus on the direct management of the projects in which it is involved. The lender currently owns a portfolio consisting of 1,900 residential and hospitality units.