Modon Holdings Purchase of La Zagaleta: Big Step Forward for Costa del Sol

In a surprise end of year announcement, the Abu Dhabi real estate development company Modon Holdings has acquired a 100 per cent stake in La Zagaleta, the company behind the exclusive community of the same name.

La Zagaleta is one of the most coveted communities in Europe, located in Benahavís just north of Marbella. It is 900 hectares in size with some of the most beautiful Mediterranean views and stunning homes worth up to €30 million. In addition to the 300 luxury homes, it also has two exclusive golf clubs, an equestrian club and tennis courts.

This purchase is good news for Modon and for the Costa del Sol economy. For Modon it is a big push into the European luxury market. And it is likely to be seen by them as a showpiece to expand further. They are a very ambitious company.

The expansiveness of Modon’s vision can be seen from their involvement in an Egyptian megaproject on the north coast of that country, called Ras El Hekma. The plan is to build a literal city of 2 million people that will cover 170 million square meters, with the first phase being 50 million square meters. It is intended to be a hyper-modern, connected and sustainable city of the future.

By 2030 the Ras El Hekma project will have received investment of $55 billion and is projected to create 100,000 jobs.

The exclusive, luxury nature of the La Zagaleta community is obviously on a smaller scale than the Egyptian project. Nonetheless, Modon intends to invest and further develop the site, while remaining true to its character as a nature preserve, as well as a secure, luxury development. The development has plots designated for up to 420 house developments, as well as a hotel.

As Modon notes in their press release:

La Zagaleta owns approximately 2.7 million square metres of land area inside La Zagaleta resort, and this will provide Modon Holding with a robust development pipeline of luxury residential units in the heart of Costa del Sol, a hotel plot that will embed a hospitality offering to the estate, the overall management of the estate and the 300+ homes already built. The acquisition by Modon Holding will accelerate the remaining development of the estate while preserving its legacy, exclusivity and the natural habitat. In addition, the transaction includes La Zagaleta’s planned Majarambuz development, historically known as Valderrama II within the Castellar Development Plan adjacent to Sotogrande, a 2.2 million square metre land bank (including protected green areas) that is in the process of being urbanised.

We have written on La Zagaleta before, with intricate details on the property and the amenities there. It truly is a jewel in the crown of Benahavís and the Costa del Sol and it now looks set to expand. Modon also intends to expand the La Zagaleta brand across Europe, leveraging the quality of what exists – and what they will build. Bill O’Regan, Group CEO of Modon Holding, is quoted in the Modon press release as saying:

“With an established reputation for outstanding design, diverse leisure and luxury amenities, and careful stewardship of the natural environment, La Zagaleta offers a location where luxury, privacy and security are absolutely assured. The potential to carry on the La Zagaleta’s legacy, extend it across the Majarambuz development, historically known as Valderrama II masterplan, and the potential to expand the Zagaleta brand internationally, will be a key part of the Modon Holding strategy for this acquisition. We are proud to welcome La Zagaleta to our portfolio, as part of our strategic expansion into one of Europe’s most desirable luxury real estate markets.”

This bodes well for employment in the area, as well as property values and the attraction of further investment. Modon is a big player, and this purchase is going to have an outsized impact on the local market and economy. It is another positive step forward for the Costa del Sol.

By Adam Neale | Property News | December 24th, 2024

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