Walter Finch
A HIGH-END German real estate firm has abruptly closed its Mallorca office just three years after launching with ambitious plans to dominate the island’s luxury property market.
Neptunus International, which handled over 500 exclusive properties worth millions, has shuttered its Paseo Mallorca headquarters in Palma despite appearing to be thriving in the lucrative expat property sector.
The Berlin-based company’s sudden departure has raised eyebrows across the industry, particularly as the closure isn’t due to financial difficulties – but rather a family shake-up at the German headquarters.
According to management company Servycon, which represents Neptunus on the island, 78-year-old founder Martin Gerl has decided to hand over the business reins to his children in Germany.
His son, Martin Gerl junior, who had been running the Palma operation, will no longer continue the Mallorca venture as it no longer fits the family’s German business strategy.
“Continuing was no longer compatible with the company’s objectives in Germany,” a Servycon source explained to local media.
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The timing has surprised many in Mallorca’s booming property sector.
When Neptunus International arrived in 2020, it made a significant splash with major investments and an impressive portfolio of exclusive villas in prime locations like Santanyi and Cas Catala.
Some properties boasted over 600 square metres of living space on plots exceeding 15,000 square metres.
The firm employed a permanent staff of ten plus several freelance agents, and appeared to be capitalising on the post-pandemic surge in demand for luxury Balearic properties from wealthy northern Europeans.
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However, the closure hasn’t been entirely smooth.
While Servycon insists staff were given proper notice and contracts were terminated in an orderly fashion, a former employee claims workers were dismissed ‘overnight’ and that irregularities were commonplace.
The company also faced regulatory headaches when attempting to open a second office in Port d’Andratx. Despite apparently having all necessary permits, an architectural firm’s error led to the town hall refusing permission and forcing the company to cease operations at those premises.
Neptunus has been in liquidation since March and expects to complete the process by year’s end. The Paseo Mallorca office remains open serving existing clients until then.
The company-owned Palma headquarters will go on sale following liquidation, while the rented Andratx premises will be sublet.
The closure marks another shift in Mallorca’s dynamic luxury property market, which has seen several international firms come and go as the island’s appeal to wealthy buyers continues to evolve.
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