La Caridad, the luxury estate once owned by Juan Antonio Roca, is to house a new fairground for San Pedro and Nueva Andalucía and will be used for cultural events all year round.
The council was awarded the property, which is worth several million euros, by a court in February last year as part of the compensation Roca has to pay with regard to the 'Saqueo' corruption case.
The court order did not include the contents of the property, which included cars, carriages and hunting trophies, as these have been auctioned to pay fines and compensation in other cases of corruption involving Roca.
The mayor of Marbella, Ángeles Muñoz, visited La Caridad recently and explained that the initial idea had been to use the estate as a sports complex but this was not possible due to town planning restrictions.
Instead, all the buildings will be included in the fairground and cultural centre project, which will save the council about 500,000 euros a year.
Work has already begun, and the council is funding the 200,000 euro cost itself.