News: Official communication from the Urban Entity

Current situation of the Urban Entity

Report from the President to the Owners.

Dear owners and neighbors of Condado de Alhama,

Last November 2025, the Urban Entity issued the statement reproduced below, giving a full account of the situation found and inherited from the previous board, which, despite its efforts to manage the affairs of said Entity, could not resolve the pressing problems that had been plaguing said Entity, leaving the new board with the responsibility of taking an extraordinary and traumatic measure in this year 2026, forced by the circumstances and by the pressure of the company STV, which had been demanding payment of a debt that, with the passage of time and due to not reacting earlier, has been increasing to levels unsustainable for said company.

As a result of the strategic meetings held with STV on December 15, 2025, and January 14, 2026, in order to establish common ground and address the company's demand for payment of said debt, we have been forced to increase the quarterly fee charged to all members of the Urban Entity for 2026. WE REPEAT THAT THIS MEASURE HAS BEEN FORCED BY CIRCUMSTANCES INHERITED FROM THE PREVIOUS MANAGEMENT AND STAGE, AND BY STV'S UNDERTAKING DEMAND FOR PAYMENT OF THE DEBT.

From the negotiation with STV, an initial payment of 300,000 euros was established to demonstrate the willingness of the Urban Entity to pay and settle the debt, as an initial measure to try to reduce said debt as little as possible and thus not have to further increase the fee to be charged to the owners of Condado in the end, establishing a payment plan during 2026, to settle the total remaining debt no later than December 31, 2026.

Had STV not addressed this claim, we risked receiving a lawsuit from the company, which would have significantly complicated the current situation.

Therefore, the Urban Entity's budget has been increased in 2026 compared to 2025, reducing all expenses to the bare minimum without jeopardizing the continuity of payments for the Entity's various ongoing commitments, while attempting to rationalize spending as much as possible during 2026. This measure, and the resulting increase in fees, is expected to last until December 31, 2026. After this date, looking ahead to 2027, and depending on the outcome of the legal actions already underway against the major debtors to the Urban Entity, the increased monthly fees for owners should be adjusted downwards to try to improve their financial situation.

There are level 2 communities that had relatively ample reserve funds, and therefore they have been able to cushion this increase and the allocation of this increased fee to their owners in the least traumatic way for everyone's household finances, and there will be other communities that have not been able to reduce it too much, having a more direct impact on the percentage increase in each level 2 community.

IT IS VERY IMPORTANT THAT WE ALL UNDERSTAND THE MEASURE TAKEN, BEING VERY AWARE THAT IT WILL NOT BE PLEASING TO ANYONE, ABOVE ALL TO ANY OF US, BUT THAT IT IS THE ONLY VIABLE SOLUTION THAT THE DIFFERENT ADVISORS WE HAVE CONSULTED HAVE RECOMMENDED TO US, FROM THE CONDADO ADMINISTRATORS, TO THE COMMUNITY LAWYER AND OTHER EXTERNAL OPINIONS.

Without further ado, I reproduce the aforementioned message, which was disseminated in November 2025, to emphasize said message and to explain the circumstances again for a correct understanding of the facts.

Sincerely, kind regards.

Urban Entity Board.

STATEMENT ISSUED AND DISTRIBUTED IN NOVEMBER 2025.

Dear owners,

I am writing to you as the acting president of the Urban Entity to provide a clear, up-to-date, and transparent overview of our entity's status during this transition period. The purpose of this communication is to provide detailed information about the current situation and the immediate challenges we face, thereby facilitating the participation and understanding of all members.

Structure and Governing Bodies of the Urban Entity.

• Level 2 Communities
• Jardines 6 (including sports facilities and restaurant J6)
• Al Kasar Shopping Centre
• Alhama de Murcia Town Hall
• Alhama Nature (owner of land under construction and other properties)
• Agrofruit (owner of land)
• And other plot owners

The management and representative body is the Board, currently chaired by me, in an acting capacity, after the resignation of the previous president on October 29, 2025 and my previous appointment as vice-president at the extraordinary Assembly on September 16, 2025.

The Board consists of a President and Vice-President, both elected by vote at the General Assembly. In addition, various specific committees collaborate to manage particular areas such as construction, gardens, and security.

Main Responsibilities of the Urban Entity.

Our primary responsibility is the management, upkeep, and improvement of the development's infrastructure and shared services. This includes the maintenance of roads, green spaces, street lighting, water and sewage systems, as well as the management of essential service contracts. Furthermore, the Association acts as a liaison with public authorities and ensures compliance with urban planning regulations.

• Outer ring road
• Inner ring road
• Irrigation network
• Lake surrounding the Island
• Park next to the Island
• Community lighting
• Other shared services and facilities

Current Financial Situation.

The Urban Entity has been experiencing a serious financial crisis for years, primarily due to the non-payment of several plot owners, which has prevented it from meeting all its payment obligations. This problem has been exacerbated by the inaction of the Alhama de Murcia City Council, which has failed to initiate the enforcement proceedings against the debtors, as stipulated in the Entity's own Statutes, citing the existence of pending appeals.

As of October 31, 2025, the financial situation of the Urban Entity requires a detailed review and responsible decision-making. The current bank balance is €106,355.59. However, the entity has accumulated debts of €755,854.18, which have been accumulating mainly since May 2025, although they began in 2023. This debt is primarily due to non-payment of dues by some members, with the total amount owed reaching €1,933,756.20 as of December 31, 2025.

This problem of non-payment directly affects the Entity's ability to meet its obligations, limits the performance of adequate maintenance, and hinders negotiations with suppliers. Therefore, urgent measures are being taken to recover outstanding debts and regularize pending contributions, as well as a thorough review of all expenses and income.

Contract with STV: Background and Current Situation.

The contract with STV, the company responsible for managing maintenance services, has been the subject of several votes and analyses at previous assemblies. There is a history of contradictions in the interpretation of the contractual terms and their suitability to the actual needs of the development. At the last assembly, discrepancies were identified that require urgent clarification and the potential need to put a contract amendment to a vote.

Currently, the contract does not adequately address the current economic situation or the expectations for the quality and scope of services. Therefore, it is essential to review the terms, assess the level of compliance, and, if necessary, negotiate a new contractual proposal that aligns with our actual capabilities and needs.

Need to Update Contracts and Action Plans.

Given the current financial situation and budget constraints, it is necessary to update the existing contracts and action plans of the Urban Entity. The proposal is to conduct a comprehensive evaluation of all contracted services, prioritize the most urgent actions, and adjust financial commitments to reflect available revenue.

The development of a new action plan is proposed, which will guarantee the sustainability of the Entity and the adequate provision of essential services, without compromising financial viability.

Conclusion and Availability for Consultations.

I would like to thank all the property owners for their cooperation and understanding at this crucial time for the Urban Entity. Transparency and participation are essential to successfully addressing the immediate challenges. I remain at your disposal for any questions, suggestions, or clarifications you may require.

Warmest regards,

Ana Isabel Santos
Acting President
Urban Entity