'Bad bank' on the Costa residential development without proper electricity supply: 'The residents have been scammed'

No permanent solution is in sight for the residents of the 46 homes in the Hacienda Riviera residential complex in Mijas Costa, who have been without an electricity supply since 11 August. Hacienda Riviera is one of the dozens of residential developments in Spain in the hands of Sareb - the entity known as the 'bad bank' that was created in 2012 to manage and liquidate problematic assets (loans and real estate) from financial institutions that needed public aid.

Sareb does not actually buy properties. The company was created with the aim of cleaning up the accounts of the savings banks and what it acquires are unpaid loans that are backed by real estate. If the debtor does not pay, Sareb takes ownership of the property. Sometimes the developers, either directly or through third parties, end up exploiting these developments in the form of leases. Hacienda Riviera is one such case.

Sources have confirmed that the company that has operated the complex in Mijas Costa has been denounced "for fraud". In other words, the company has scammed the tenants by renting them a property that it does not own. Even if it did own the property, the company does not have the occupation licence.

"While these homes were under legal proceedings by Sareb to reclaim the debt from the previous owner, a third party began operating the property and Sareb sued the operating company for fraud," Sareb stated, adding that it has filed some 20 complaints in Spanish courts for cases such as this one.

Sareb said that it "has no record" of whether the residents of Hacienda Riviera are paying rent or to whom they are paying rent. In fact, as the case is being prosecuted, the debtor company cannot receive income from bank accounts, as the judge would end up seizing the money to pay off the debt with Sareb, which is why it is normally a third party that ends up exploiting them.

Residents say that 75% of the 46 homes in Hacienda Riviera have been occupied since 2019 and that even "until the Covid pandemic" they had services such as security and maintenance. They had signed a lease contract, which was later renewed in some cases. This is what Daniel Serón did. He initially signed a five-year contract, which was then renewed for another five years. Between eight and nine of the homes have been occupied without a lease since the moment they were left empty.

The residents received electricity through what is known as 'luz de obra' temporary power supply system provided to construction sites. Everything changed on 11 August. The way the homes were receiving power caused a short circuit in the neighbouring Riviera del Sol development, which resulted in 14 homes in Hacienda Riviera being disconnected. According to residents, one of the tenants of these properties then made an illegal connection, which led to several houses in Riviera del Sol catching fire. Since then, the 46 homes on the Sareb development have been left without electricity. In order to have power, the residents are using generators or solar panels.

Sareb representatives have stated that it has tried to gain access to the complex in order "to get first-hand information", but some residents have not allowed it to do so.