A local court has intervened at the Puerto Plata tourist complex in Gran Canaria, halting renovation and construction work following a bitter dispute between the Norwegian-owned operator, Servatur, and a group of property owners.
A Dispute Over Ownership and Control
The legal battle centers on the validity of decisions made during the community’s general assemblies. Four owners have taken the matter to court, seeking to invalidate resolutions that granted Servatur management responsibilities and the exclusive right to convert over 500 square meters of common areas into seven new holiday apartments.
“It is a terrible conflict in the ownership community,” says retiree Arvid Bårdstu.
The owners allege that the decisions were reached through procedural errors and potentially forged meeting minutes. They argue that the conversion of shared spaces and the shift toward a professional hotel-rental model threatens their rights as private owners, particularly for elderly residents who use the apartments for health and social purposes.
Conflicting Perspectives
In response to the allegations, Servatur’s CEO, Michael Lund Jensen, maintains that the company is acting on behalf of the majority. He states that the company is not forcing anyone into rental agreements and that the upgrades are intended to benefit the complex.
The company notes that Servatur has already secured rental agreements for 124 apartments in the complex, with a start date of March 1. Jensen emphasizes that the company respects the individual situations of the 293 different owners involved.
The Broader Regulatory Context
The conflict is set against a backdrop of tightening tourism regulations in the Canary Islands. Laws passed in 1995 and 2013 require certain tourist areas to be managed professionally, which can limit private use and mandate unified hotel management.
As authorities implement stricter controls on holiday rentals, many owners are finding themselves in legal and political battles over how their properties can be used, and managed.
What Lies Ahead
The legal process is ongoing, and the court’s decision may be appealed to the provincial court within a 20-day window. If the owners successfully prove irregularities in the voting process or the interpretation of ownership laws, the previous assembly decisions could be annulled.
Such an outcome may result in Servatur losing its current contractual basis for management at the complex, potentially returning the administration of the property to the community or an external actor.
Frequently Asked Questions
Why did the local court stop the renovation work?
The judge granted a temporary injunction after finding evidence of “clear damage” to the community, pending a full investigation into claims of procedural errors and forgery.
What is the core of the disagreement regarding the common areas?
Owners are contesting Servatur’s right to lease 500 square meters of common areas for 15 years to convert them into seven new holiday apartments.
How does the Canary Islands tourism law impact the owners?
The law requires certain tourist-regulated areas to be managed by a single professional hotel operator, which can limit how much owners can use their properties for private residence.
How should the balance between private ownership and professional tourism management be struck?
