The Madrid-based investment group, Grupo Millenium, is about to close a deal on the purchase of Malaga's iconic Equitativa building, SUR learned this week.
The group will include the building among its projects to be carried in the short term, although it is not known whether its future use will be residential or as a hotel.
The purchase comes with the complication of the building's ownership being shared by three parties. Millenium is currently negotiating with the developer Rubcapel which owns 60% of La Equitativa. The remaining shares are divided between the firm Ingomar (30%) and four minority owners.
This division has made negotiations for the purchase and refurbishment of the building difficult. Once a deal has been closed with Rubcapel, something sources indicate will happen very soon, the Madrid investors will have to sit down with Ingomar, a firm that SUR has learned does not intend to sell. The possibility of physically dividing the building has also been considered.
Grupo Millenium has said that the building could be used for private residences, a hotel or tourist apartments. This will depend, though, not only on whether the group buys all or part of the building, but also on the municipal Planning Department.
The building is listed and granted grade 1 protection for its architectural value, which would condition its conversion into a hotel.
Overall the Millenium group plans to invest 400 million euros in building 32 hotels and has projects in the pipeline for Marbella and Estepona.