Belgian investors eyeing up Malaga's old post office

The old post office building has been disused for some time.
The old post office building has been disused for some time. / SUR
  • Before it can be auctioned, debt and disagreement between different local authorities need to be sorted out

The Correos building, once Malaga city's main post office, is getting closer to being bought and redeveloped, and it looks like a group of Belgian investors is the most interested so far.

However the building has been blighted by a game of pass the parcel between different public authorities, and getting it to a stage where it can be bought and turned into a hotel has so far been far from easy.

The modern block, on the edge of the city centre near El Corte Inglés, has been an eyesore for some time. The Junta de Andalucía, the current owner, needs to arrange a public bidding process in order for anyone to buy it.

The building, which has been wrapped in protective netting and suffers from graffiti on its lowest floor, was handed over to the regional government by Madrid in 2010 as a way of cancelling out a historic debt of 30 million euros between the two public bodies.

The situation was further complicated by an embargo placed on its sale by the Diputación provincial authority over a debt the Junta has outstanding with them. Sources say that only around 1.5 million euros is still outstanding, meaning the embargo could be lifted soon.

However the final hurdle has still to be jumped as the Junta still needs to get the city council to change the site's planning designation. Currently it is earmarked for public use but councillors needs to update its status to allow a private business to use it. However the town hall has so far said 'no' as it wants the Junta to give the city a similar-sized piece of public infrastructure in compensation.