La Manga Club in voluntary insolvency

Spain's La Manga Club has gone into voluntary insolvency. The popular resort in Murcia has debts of almost €100m but remains open for business.

The resort is the first of its calibre to fall victim to the global economic downturn, according to Spanish Property Insight.

With three golf courses, 1,888 private holiday homes, eight football pitches and a spa, La Manga Club is considered one of Spain's flagship holiday resorts.

However, the club in Murcia, owned by developer Medgroup, has debts of €97m. Nevertheless, home owners will not be affected by the recent events.

"This decision will not affect La Manga Club, which will continue to run as normal," a spokesperson for the resort told the website. "The management team is already working to bring the company out of a state of lack of liquidity and operating deficit in order to stabilise and guarantee its continuity."

Although it was developed primarily as a residential resort, there are still reported to be some leaseback properties for sale. There is also thought to be a wide selection of private villas and apartments available on the resale market.

Medgroup bought La Manga Club from P&O in 2004 for €146m. Due to its facilities, it is a popular winter training destination for professional sportsmen.

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