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100 million euros to spare? Buy this airport

Posting in Technology

Looking for a bargain at auction? Perhaps Spain's Ciudad Real Central Airport in La Mancha will take your fancy.

The airport, located 100 miles south of Madrid, is now up for auction with a starting price of €100m -- even though the rarely-used travel hub cost €1 billion to build. The catch? The lucky owner of the airport will also have to take on Ciudad Real Central Airport's €529m debt.

Castilla-La Mancha's airport is currently going through bankruptcy proceedings, and the sale has been ordered by the case's overseeing judge. Once sold, there are a number of parties waiting in line for compensation.

The auction house will claim roughly €2 million, followed by airport workers made redundant. Suppliers, creditors and local residents whose houses were compulsorily purchased are also impatiently waiting.

If no buyer emerges from the first auction, a private auction will be held with an €80m reserve price. Pending failure, the last resort will be a compulsory sale at a judicial auction.

The airport's failure has been placed at the feet of owners who lacked a substantial business model. The administrators of Ciudad Real Central Airport told The Guardian that its proponents "produced a financial plan that was not based on any studies of the market or of demand that would justify the anticipated traffic."

Via: The Guardian

Image credit: Wikimedia Commons

— By on August 7, 2013, 5:35 AM PST

Charlie Osborne

Contributing Editor

Charlie Osborne is a freelance journalist and photographer based in London. In addition to SmartPlanet, she also writes for business technology website ZDNet and consumer technology site CNET. She holds a degree in medical anthropology from the University of Kent. Follow her on Twitter. Disclosure