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Uncertainty over Ikea after court halts Alicante development project

20 December 2009 96 views 2 Comments

The Valencia High Court is concerned about water supply to the thousands of new homes to be built in the city’s Plan Rabasa

The plan by Alicante City Hall to develop an area of more than 4 million square metres in the north of the city, the Plan Rabasa, has been halted by the Valencia High Court. It followed an appeal placed by central government and one of the main concerns in last Thursday’s ruling was over water supply to the 13,500 new homes which are planned as part of the development. The Plan Rabasa got the go-ahead from the regional government earlier this year.

Diario Información reports that appeals against the ruling are to come from both Alicante City Hall and the project’s promoter, the businessman Enrique Ortiz.

The halt order from the regional High Court now throws doubt on the massive commercial complex which is planned by Ikea as part of the Rabasa development project, with concerns that the Swedish multinational may now decide to pull out. It’s understood that Enrique Ortiz is to meet with company representatives in the coming days to discuss the situation.

Another meeting between Ikea and the Alicante Mayor, Sonia Castedo, is expected before the end of this year. (Via Original Source)

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