10 August 2018
The property company just acquired the building located at 523 Avenida Diagonal in Barcelona.
Colonial has acquired the property located at 523 Avenida Diagonal in Barcelona. The area, which is considered the city’s Prime CBD, has traditionally been dominated by financial institutions, law firms and other service companies. The building has easy access to an array of services in the area and public transport, providing connections to all areas of the city. CBRE advised on the operation.
Currently, the building is leased to a single tenant, the Environment Department of the Government if Catalonia. Colonial announced that it intends to renovate the property in its entirety, leading to the creation of an iconic office building in Barcelona’s central business area. The total cost of the project, including capex, will be €37m, corresponding to an investment of €6,460/m2.
No new office projects in Barcelona’s CBD are currently underway, and the vacancy rate of Grade A buildings in the area is at historic lows, 1%. The building has an area of 5,800 m2 above ground, in addition to 1,200 m2 below ground. The building is divided into a ground floor and nine upper levels.
Xavier Güell, CBRE Barcelona’s director of Capital Markets, stated that ”this operation was the first in the third quarter, one in which everything points to the likelihood that it will be especially good for the office investment market in Barcelona. We here at CBRE expect that there will be €400 million euros of transactions just between July and September.
Original Story: Misoficinas.es
Translation: Richard Turner