14/07/2014 – Expansion
The local government of Catalonia, also called Generalitat, has become the main tenat of insurance companies. A year ago, the authority transferred another lot of 13 properties to Axa for €172 million. Yesterday, it sold 13 office buildings to Zurich for €201 million. Originally, Generalitat had expected to receive at least €216 million for the units, but the amount proposed by Zurich is still bigger than the €172 million-only-offer submitted at the second auction (the first was unattended).
Zurich, advised by JLL and the Roca Junyent lawyers office, shall lease the offices to the Catalonian government for between 5 to 20 years, depending on each property. The lot includes such headquarters as the one of the Home Office, local divisions of Justice, Culture, Social and Family Welfare and other administrative branches.
The authority will pay annually a €12.9 million rent for all the units of the total area of 94.037 square meters. The amount obtained will allow redemption of the €13.7 million in mortgages on them.
In the nearest future, Generalitat plans more real estate sales, for example it will auction the building of Barcelona Bourse.
Original article: Expansión (by M. Menchén)
Translation: AURA REE