The 1,400-acre resort--a popular training ground for the Englandfootball and Davis Cup teams--had been put up for sale by theshipping group P&O in August this year for 148.9 million euros($181.3 million). The estate comprises two hotels--including afive-star Hyatt--eight football pitches, three golf courses and a28-court tennis centre. Robert Woods, chief executive of P&O,says: "This sale is a further significant step in our ongoingstrategy of realizing value from our property portfolio andfocusing on our high-growth ports business."

The buyer, Spanish leisure and property company MedGroup, is 90%owned by private equity fund Soros Real Estate Investors. P&Ochairman Lord Sterling says La Manga is "a world class resort"which will "complement MedGroup's strategy of developinghigh-quality vacation properties in Spain."

La Manga was created by American resort developer Gregory Peters30 years ago, seeking to export something of the archetypal Floridagolf course to Europe. Its now celebrated South Course got amakeover from golfing legend Arnold Palmer in the 1970s and becamea championship course and home to the Spanish Open. It was boughtin the early 1980s by European Ferries and became part of theP&O empire after its 1987 takeover. During the 1990s, millionsof pounds was spent on development.