The Generalitat stepped in to support Society Projects for Digital Transformation (SPTD) amid a challenging financial period tied to the Port of Alicante’s new headquarters project, the Volvo Ocean Race, rising material costs, and taxation. The aim is to ensure the venture remains viable as income relies mainly on leasing space to tenants. A capital increase of 21.2 million euros is being pursued to secure the project’s stability for the remainder of this year and into the next. The Consell believes restarting filming activity at Ciudad de la Luz will generate fresh revenue and rejuvenate the institution.
The matter will be debated formally at the SPTD board meeting scheduled for Monday. Based on information obtained by this publication, budgets approved for 2023 contemplate increasing the seemingly single-owner share capital controlled by the Generalitat from 21,199,894.96 euros to 57,524 new registered shares with a nominal value of 368.54 euros each.
The file includes the following statement: “The capital increase planned for 2023 in the Generalitat Budget Law should be executed with a single partner. It is essential to fulfill obligations already contracted by the business. Approval by the Consell is required before 31.12.23, with 25% of the amount due on the date the contract is accepted.”
In fact, the company’s financing activities for 2023 align with the Generalitat’s budget, which already allocates the amount for this capital increase. The move forms the basis for 2023 and 2024 budget planning and suggests that the council simply needs to request the extension from the Capital Authority. Consell is expected to approve it before year’s end, enabling SPTD to close the year on solid footing and begin the next year without disruptions.
A key factor is the expectation of operating income contributions of around €1.70 million in 2023, largely tied to the Digital Zone, which now operates as a coworking space rental service under the new regional leadership from the outset.
Planned expenditures for the year total €34.72 million and are to be funded through the capital increase and the company’s equity, leveraging liquidity in the current account or the year-end 2022 balance, or by collecting existing debts.
The expense plan covers initiatives such as the Volvo Ocean Race, which should be allocated to this year’s budget even though payments have been made in prior years. Specifically, this item requires €6.5 million plus €3.5 million in organization and village fees, with additional costs pushing the race-related expenses to €11 million excluding VAT.
Investments of €7 million related to the Volvo Ocean Race are also included. Five million supported Digital Zone headquarters work at Pier 5 of the Port. With energy bills climbing to €4 million (three years ago only €900,000 was allocated), maintenance at €4 million, and staff costs at €1 million, other material and tax expenses arise. Additionally, €700 thousand in tax, €700 thousand in security, and €500 thousand for cleaning are accounted for.
The company also has substantial external contracts, including a deal with Distrito Talento worth €800,000 annually and another contract to attract international firms for around €900,000 over the next three years.
A message of reassurance comes from the Ministry of Innovation, Industry, Trade and Tourism and the SPTD council, led by Nuria Montes. They explain that the capital increase guarantees the project’s viability and strengthens the first steps toward reviving the company, with Ciudad de la Luz studios positioned as a significant economic asset for both the province of Alicante and the Valencian Community.
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There is a belief that the City of Lights holds substantial revenue potential, evidenced by interest from national and international operators in using the facilities since Brussels lifted its veto on filming last year. The plan envisions an internationally renowned operator taking charge, while SPTD management is already pursuing activity at the facilities, as seen with a Netflix project slated to shoot in December and a new Amenábar film scheduled for release in 2019. The province will host shooting for six weeks starting in February.
Furthermore, SPTD’s director, Fermín Crespo, noted efforts to reduce waste in society and to reimagine the Digital District project as more than a coworking venue, prioritizing internationalization and the attraction of firms. The intention is to add value to the technological hubs Generalitat plans to develop at the Port facilities in Alicante and across the three provincial capitals.