Private investors sell Spanish ghost airport

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Private investors sell Spanish ghost airport

Private investors are selling a new airport in the Spanish city of Ciudad Real. The asset, which cost €1.1 billion (US$1.5 billion), has gone on sale for a minimum price of  €100 million (US$137 million).

The infrastructure asset has gone up for auction to meet creditor demands and the bidding will close on December 27th 2013. If the transaction is not closed during this first stage, the disused airport is to be put out to competitive tender for €80 to 100 million.

Interested buyers are also asked to submit bank guarantees accounting for 5% of the airport's market value.

The asset includes the entire facility, infrastructure and a nearby industrial estate.

 Francisco Pérez, one of the bankruptcy administrators, said:

"No firm offers have been received so far but there are several interested groups and we suppose that bids will be handed in when the deadline begins on Monday."
Construction of the airport was heavily funded by the Caja Castilla La Mancha savings bank - the first of Spain's troubled savings banks to be bailed out, in 2010.

Ciudad Real's central airport, located about 150 miles south of Madrid, opened in 2008. The airport's operator went bankrupt last year after it failed to draw enough traffic, becoming known as one of the country's "ghost airports."

Ciudad Real, a city of around 75,000 residents located halfway between Madrid and Cordoba, attracts few visitors and the airport was designed to serve both the Spanish capital and the Andalusian coast which are both less than an hour away by high-speed rail.

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