Auditor flags financial imbalance at Sotogrande; loan conditions breached

✦ Meridian Analysis

Deloitte, auditor of the inmobiliaria Sotogrande, has flagged a financial imbalance in its 2025 accounts after breaching conditions of a 27,3 million syndicated loan from Sabadell and Santander. The loan is secured by a mortgage on the five-star SO/Sotogrande hotel. The breach of the debt-service coverage ratio has forced the company to classify the entire debt as current, although the board says no payment has been missed and the group has refinanced the debt. In parallel, Sotogrande has reached an agreement to sell the concession and exploitation of the marina and port to the Villar Mir group, the current operator of the port. The transaction is still pending approval from the Junta de Andalucía. Deal professionals will be watching for the final sale price and the structure of the transaction. The timing of the Junta de Andalucía approval, the disclosure of any advisers, and the exact terms of the refinancing that the company claims to have completed are all still undisclosed. The outcome will determine whether the breach of loan conditions will be remedied before the port concession is transferred.

The Meridian Weekly