Fine of 90 million euros for blocking villa complex from German property magnate in Mallorca

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villa complex planned for Sóller, Mallorca

PALMA – The government of the Balearic Islands has been called back by the regional high court TSJB in an urban planning case of a villa complex. The case was brought by the company of a German real estate magnate.

His company Birdie Son Vida had an agreement with the government to reclassify a plot of land in Sóller, Mallorca. The urban development with an area of ​​33,959 m2 was dependent on this reclassification. On this plot of land, Matthias Kühn’s company would build a villa complex of 33 luxury properties with a sea view.

According to the regional press, the Supreme Court estimates that the incident led to the “impossibility of execution” of the Birdie Son Vida construction project. Impossible due to the government’s failure to comply with a transaction agreement stating that the lands of the Muleta II urbanisation in Puerto de Soler would be reclassified from protected rustic to urban land.

Cogesa Expats

Breach of the transaction agreement

In its judgment, the Court explains the following; In 2016, a government decision suspended the law authorising the recognition of urban land. Furthermore, that decision violated the transaction agreement reached after a 2008 lawsuit. That transaction agreement stipulated Birdie Son Vida is entitled to compensation of €63,533,374 plus interest from May 2009 (€28 million). So a total of €91.5 million.

Private Island for Ibiza

Kühn is a German businessman with multiple companies and properties in the archipelago. Until a few years ago, he also managed the private island of Tagomago. This is less than a kilometre from Ibiza. And has a luxury mansion where famous personalities have stayed. These include footballers Cristiano Ronaldo and Gareth Bale, musicians Justin Bieber, and Ronnie Wood (The Rolling Stones).

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