Russian fund invests 200 million euros in the Costa del Sol property sector

A model of the 'Los Palacetes de Banús' development.
A model of the 'Los Palacetes de Banús' development. / SUR
  • The Velum Group's latest project is a development of eight luxury villas situated in the Río Verde area near Puerto Banús, 700m from the beach

The recovery of the property sector is once again attracting capital from a wide variety of sources and the Costa del Sol has become highly attractive to investors again. The Velum Group investment fund, which is of Russian origin, is currently developing projects worth more than 200 million euros and has just officially presented one of them, 'Los Palacetes de Banús', consisting of luxury villas in the Río Verde area of Marbella, 700 metres from the beach at Puerto Banús.

The group is in the process of building five developments in Spain, four of them on the Costa del Sol and one on the Costa Brava. It began by exploiting oil wells in the former Soviet Union but later, after the fall of the socialist system, its members invested in different sectors of the European economy, principally in finance.

It was not until three years ago that they decided to venture into the field of property, and to focus on the Spanish Mediterranean coast.

The company, which set up in Spain in 2016, is based in Marbella and has an investment plan of over 200 million euros. It has 245,000 square metres of land on which to build.

The presentation of Los Palacetes de Banús took place on the site where they are going to build eight luxury villas, all in contemporary style but all different, designed by architect Oscar García De La Peña of Estudio Arquim. Each villa will be more than 1,000 square metres in size plus another 500 square metres of terraces, porches and gardens. The prices are around five and a half to six million euros. The project already has a works licence and the properties are expected to be ready by 2021.

La Finca de Marbella

Another of the group's projects on the Golden Mile is 'La Finca de Marbella', a development of 104 villas whose first and second phases have been completed. The third phase will be ready in 2021.

The Velum Group is also building 'Alcala Valley' in La Cala de Mijas, which consists of 220 apartments. These are also expected to be completed in 2021. The fourth project is an exclusive residential hotel frontline to the sea in El Saladillo, Estepona. It will be run by an international group.

The only development outside Malaga province is 'Albacsari Villas' on the Costa Brava, consisting of 18 houses. The first phase is due to be completed next year.