ARRECIFE – The auction of the controversial Sands Beach Resort, another touristic macro-complex, located in the touristic heart of the Costa Teguise in Lanzarote has closed.
The original owner of the residential and hotel complex put the complex up for auction in 2017 on gobid.es. Initially it was valued at more than €17 million. The complex comprises 368 apartments spread over 6 buildings. It even has its own desalination plant and several Olympic swimming pools. There are also playgrounds, sports facilities, meeting rooms, a supermarket, a spa and wellness centre, a disco with bar, and various gastronomic areas such as restaurants, a pool bar and a terrace bar.
In addition, the resort is conveniently located near a golf course and a water park. According to the auction information, which did not apply a reserve price but required a deposit of €340,000, the bidding round closed on April 28. Therefore, it will be announced shortly which bidder has acquired the resort. However, the trustee’s decision still needs to be approved by the court.
The tumultuous history of Sands Beach Resort
The history of this complex, which was built in 1986, has many struggles. The first major problem arose when the resort operated under a timeshare model and was known as Lanzarote Beach Club. British businessman David Stirling was sued by numerous British and German citizens who bought holiday time but were unable to use it because Stirling sold the complex in 2006 for €18.3 million.
Behind the purchase was a network of companies managed by Russian couple Vladimir Kokorev and Julia Kokoreva. According to an investigation by a Las Palmas court, the couple allegedly used the resort’s apartments and operations to launder money from the sale of weapons to Teodoro Obiang’s regime in Equatorial Guinea.
During the management by these Russians from 2006 to 2008, a significant debt to the tax authorities also arose. Since then, the company has been on the list of tax debtors of the Spanish tax authorities.
Eventually, the management of Sands Beach Resort was taken over in 2008 by Jordi Vargas and Juan Carlos Albuixech. Albuixech is a well-known entrepreneur on the island and also president of the Unión Deportiva Lanzarote. Subsequently, the company was declared bankrupt in 2017 and the receiver finally gave the green light for the auction of the complex.
Soon the future and possible new start of this resort will be announced, in which it hopes to put an end to its black reputation. When the new owner of the resort is announced, their plans will be revealed as to what they will do to restore the reputation of Sands Beach Resort.