Gibraltar - and nearby Spain

1. Key Factors

2. Key Features and Developments

 
Regionally, Spain benefits from investment, economy and air transport.  
 
New residential, leisure and retailing at Marina Bay
 
Visits from the world's greatest cruise ships

Europlaza (residential)
Europort (business)
 
 
 
MidTown
mixed scheme, Kings Wharf and Queensway Quay (residential)
 
 
Hanging Gardens
(residential)
 
  
The Anchorage
(residential)
  
Improved trunk roads, motorways and telecomms
 
New airport terminal, more flights and use by Spanish carriers.
 
New road link from border under runway
 
Very large new £1.8bn leisure, retail, residential development at Sovereign Bay marina
[Reuben Bros,
Lord Foster + Multiplex]
 
 
 
 
 
GIBRALTAR
KEY FACTS
6.5 sq.km
[2.5 sq.miles]
 
Pop'n c.30,000
Avg £19,500 p.a
[10th highest per capita income]
 
GDP £600m p.a
Growth 7% p.a
 
Visitors 7m p.a
[£202m value]

2. Gibraltar Airport - Making Connections

Historically, Gibraltar has been separated to a greater or lesser extent from Spain and the rest of Europe. (Its former strategic naval importance notwithstanding). The land border was reopened in the 1980s but public air traffic was confined to a small number of UK-only flights. The 2006 Tripartite Agreement (Gibraltar-Spain-UK) has changed this somewhat isolated situation very radically. Amongst the important consequences are -

     Gibraltar Government information about Airport and Road (opens 36KB PDF document)

 
3. Sovereign Bay Development - £1.8bn, 10 years

Foster and Partners proposed marina development will be located on an existing area of reclaimed land to the east of the Rock. The new harbour has been engineered (specialist consultant Marina Projects) to withstand the 6m high wave of a hundred-year storm, and is spacious enough to accommodate a boutique cruise liner terminal, as well as a full marina for yachts and other watercraft.

The residential component will include a range of 2,200 apartments with private swimming pools, terraces and sea views. The masterplanned wharf fingers of residential accommodation take full advantage of the available views from every corner of the site. Two beaches on each side of the development will be regenerated, with a spa and hotel located at the land-side gateway. The harbour will be connected to a series of landscaped public squares and plazas, with naturally-lit underground parking and direct pedestrian access, which will include a variety of leisure facilities, such as swimming pools and tennis courts, in addition to a full complement of retail and designer outlets.

. . . "Multiplex, the Australian builder, and the Reuben brothers, the billionaire private investors, are in talks to develop a £1.8 billion marina development in Gibraltar. The ambitious project, which is designed by the famed architect Lord Foster of Thames Bank, includes at least two luxury hotels, a cruise liner terminal, a 500 berth yacht marina and hundreds of luxury apartments, as well as a housing development. The Government of Gibraltar is keen for the plans to proceed because it believes the project will help to deliver economic growth and hundreds of new jobs. " . . Jenny Davey, The Times 7th January 2005

. . . "The Reuben brothers and Multiplex, the leading figures in the proposed Eastside development yesterday declared their commitment with moving ahead on the Eastside project. In a response to questions they declared that “for the avoidance of any doubt, the Reubens and Multiplex remain 100% committed to the Eastside Project. We are in full discussions with the Government of Gibraltar and are confident that detailed planning consent for the Development will soon be forthcoming.” " . . . Gibraltar Chronicle 15 March 2007

. . . "The Chief Minister described the project as a destination and not just a development project. “150 years from now it will be regarded as an important phase in Gibraltar’s evolution and development. This is not just a building but creating in Gibraltar a destination in the context of the Mediterranean” (he told the Chronicle), pointing out, that the benefits were not just economic, and that the project would also create hundreds of jobs and secure huge infrastructure works." . . .

 
4. Marina Bay :: TradeWinds and Ocean Village

Taylor Woodrow, one of the largest developers in Gibraltar, boasts that properties sell out before brochures come out. At Marina Bay, they are constructing TradeWinds - a sail-inspired, three-towered waterside development of 80 flats costing from £365,000 each.
. . ."Our buyers are mainly wealthy individuals who invest here to qualify for tax breaks. They are attracted by the English language, law and administration. They pay lower stamp duty than in England and no capital gains tax. And then there's the climate and the airport." . . .

. . . "We decided Gibraltar needed a lifestyle centre, somewhere with the best bars, restaurants and stores, great property and a state-of-the-art marina. So we bought one of Gibraltar’s oldest marinas and are realising that dream,” says Greg Butcher, CEO of Fairhomes Luxury Property Group, the company behind the impressive Ocean Village project." . . .
Over £45 million will be invested in the scheme, which will be the only integrated retail, leisure and residential development in Gibraltar. It will also incorporate a fully serviced marina, retail units, cafés, alfresco dining and promenade areas. It will be constructed in two phases - Royal Ocean Plaza (completion 2007 - sold out within 48 hours of coming on sale); and Grand Ocean Plaza and Majestic Ocean Plaza (completion 2008 - sold out within 12 hours).

Ocean Village's Heart Island - 4,600 sq.m of reclaimed land - will include a four-storey complex incorporating landscaped areas, a public performance area, restaurants, bars, night clubs and a casino. A full-sized public bar able to seat more than 100 customers and crafted entirely from ice — believed to be the first of its type on the Mediterranean coast — is part of the £6 million interior decoration and furnishing plan that the Gala chain (part of the Coral Group) will invest in setting up the casino on the ground and first floors of the entertainment centre.

In October 2006, Greg Butcher announced three further development proposals around Marina Bay - West Coast Campus, a 16-storey £23m office complex over a 500-space car park; Boat Homes, 70+ two or three houses on a new £12.5m island; and at Bayside a £3m multi-storey block of 52 apartments.

 
5. Cruise Ships and Superyachts

2006 was a record-breaking year for the cruise industry in Gibraltar. 210,799 passengers and 96,445 crew arrived in 202 visits, the highest number of passengers, crew and ship visits here ever. 65 different cruise ships included Gibraltar in their itineraries, including the brand-new Italian cruise ship, "Costa Concordia", which called at Gibraltar during her maiden voyage, carrying 3,592 passengers and 1,064 crew, a total of 4,656. It is reckoned that cruise ship visitors contribute £6.6m annually to the Gibraltarian economy.

2007 promises to be an even better year, with 213 calls already scheduled and an estimated 240,000 passengers, highlighted by Royal Caribbean’s "Navigator of the Seas", one of the largest cruise ships in the world and with a potential to bring over 28,000 passengers during her nine scheduled calls. Disney's "Magic" will also be paying two visits to Gibraltar, during her transatlantic voyages to and from her maiden season cruising in the Mediterranean.

One of the reasons why the big yachts, the so-called superyachts, are calling in greater numbers is that their requirements for stores, repairs and other services are very similar to those of a commercial vessel and their owners can call on the services of one of over a dozen competing ship's agents to arrange for everything they need. For large yachts requiring drydocking or major refurbishment Gibraltar's famous dockyard, Cammell Laird, has converted one of its dry docks into a dedicated superyacht facility.

 
6. Europlaza -£137m and Europort - £140m

Europlaza, Gibraltar’s recently completed 14-storey luxury development, sits on the water's edge at Westside. The building consists of 160 apartments and was designed principally for the middle to high end of the local market. The project was launched at a time when few developments in Gibraltar offered spacious layouts with large terraces as well as the comforts of air-conditioning throughout and high specifications including oak floors, an abundance of glass to most living areas and common areas designed to reflect the open and comfortable nature of the development. The project has been an overwhelming success despite the contractor's delays in completing the project. Developer : Montagu Group

Europlaza is located next to the new Gibraltar Hospital and also adjacent Europort. This large complex of commercial office space was the original spur for accelerated economic growth when it was constructed, on reclaimed land, in the early 1990s, at a cost of £140m.

 
7. MidTown - £137m

The MidTown development (Montagu Group with Volker-Wessels) is situated along the old sea wall of Gibraltar, at a crucial location between the old city centre and the extensive land reclamation area to the west of it, on which a number of large office and residential construction projects have already been completed.

It comprises 20,000 sq.m of offices, 160 apartments, an underground car park with 770 spaces, a new town park, a school for 450 pupils and a leisure centre.

The leisure centre is currently under construction. The work includes the re-zoning of the existing monumental defence works of King's Bastion. A modern leisure centre will be put in place here that will contrast strikingly with the centuries-old fortifications in the peninsula's bastion. This complex will house two cinema screens, a discotheque, a restaurant, a bowling centre and a skating-rink – a unique feature in this location – among other facilities.  

 
8. Kings Wharf - £100m - and Queensway Quay

The Kings Wharf Quay 27 luxury apartment complex — a £55 million first phase which is to be followed by the £45 million Quay 29 - typifies what is happening on the upper rungs of the property ladder (Developers: Montagu Group). It stands 19 stories high and will be one of Gibraltar’s tallest structures, situated adjacent to Cormorant Wharf and Ragged Staff Wharf (Gibraltar’s original high-end residential zone of 226 apartments and penthouses, developed by Taylor Woodrow around Queensway Quay). More than 70 per cent of the 141 units released in March were sold immediately —
“ . . . most importantly to a great number of local buyers most of whom… are owner occupiers. There was no question that Kings Wharf would also attract a number of investors (speculators and buy-to-let investors) due to its prime location; because of its proximity to the town centre and Gibraltar’s financial hub, local and international investors most of which have had a great deal of experience in property, have all been delighted with the opportunity to be involved in a residential scheme that offers location, luxury and space . . ” .  

Queensway Quay and its attractive marina is seeing two further residential developments, The Island and The Sails, both by the same developer, Paul Butler.

The Island, nearing completion in 2007, consists of 19 luxury houses, each with a 20m private boat mooring, constructed on 13,000 sq.m of reclaimed 'island' land. Completing the fourth side of the marina The Sails, consists of 40 apartments - preliminary construction work started early in 2007.

 
9. Hanging Gardens Project - £12m

Developer Greg Butcher has obtained the site of Gala’s present casino near the Rock Hotel, where he hopes to build a series of mountain-slope luxury homes, each with its own large 'hanging garden'. His company is proposing to build a 12-storey (ground floor, upper ground floor and ten storeys) apartment block on an area that includes the present Gala Casino site, once the casino has been relocated to Heart Island, part of the Ocean Village development on Gibraltar’s western seaboard.

The £12 million, 20,000 sq.m project will house 92 luxury apartments in a ’stepped ribbon development’ that will encroach upon a green area bordering the Upper Rock Nature Reserve, and it will be around six storeys higher than the building currently occupying part of the site, although it is understood that the full height of the building will only be achieved towards the back, or eastern side. All apartments will have private gardens and there will be 195 parking places provided in the multi-level parking garage, which will have its entrance at the bottom of the adjacent Engineer Road. The roof levels will provide additional green areas and other facilities for residents.

 
10. The Anchorage - £39m

The Anchorage — a £39 million project at Rosia Bay (Nelson's harbour), which enjoys its own micro climate that largely escapes the Levanter — is another development by Montagu Group. In the first six weeks after the project was launched 75 per cent of the apartments were sold — and more than half of these will be taken up by owner-occupiers. As well as townhouses there are 96 one-, two-, three- and four-bedroomed apartments several of which have gardens, as well as two magnificent penthouses.

 
8. Regional Effects

There are a number of local-regional factors that are interacting to increase the pace of economic devlopment and prosperity not only in Gibraltar, but also in the surrounding area of South-East Cadiz province. Traditionally, this has been significantly poorer than both Spain and Andalucia itself.

However, developments concerning Gibraltar as well as developments in Spain, are changing that picture. Amongst these are -

LEGAL DISCLAIMER
All reasonable care has been taken to ensure that the information disclosed in any documentation is accurate and current. That said, such information is often based upon an assessment and interpretation. Investors must therefore make their own appraisals. The value of property can go up as well as down, as can rental yields. No representation is being given that any statements, views, projections or forecasts provided by Source-4 are specific to any particular property. They merely represent a general picture of the property market, and investors must determine for themselves what reliance they should place on such information.

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