EY Negotiates Move From Torre Picasso To Torre Titania

6 October 2015 – Cinco Días

El Corte Inglés completed the construction of the building more than two years ago, but until now, nobody knew who the tenant might be. But now, Torre Titania, one of the most futuristic and newly-constructed buildings in Madrid, has a clear candidate for its tenancy. The leading contender is the consultancy firm EY (formerly known as Ernst & Young), which is now negotiating the terms of its potential move with the retail giant, according to sources in the sector.

The Spanish headquarters of the consultancy firm is currently located in Torre Picasso, owned by Pontegadea, the investment vehicle controlled by Amancio Ortega, the founder of Inditex. EY occupies 10 floors in that building, covering around 15,000 m2, for its c. 2,000 employees based in Madrid (of the 3,000 people it employs in Spain). The British firm is looking for a larger space for its team based in the capital, as the company is hoping to continue to grow in response to the high demand for professional services.

JLL is acting as the RE advisor

The chosen destination for the move is the space owned by El Corte Inglés, although according to sources in the sector, the company is also evaluating other options. The move to Torre Titania is the most advanced of all the negotiations, but no contract has yet been signed. EY has engaged the consultancy JLL to coordinate its search process, but JLL refused to comment on the recent speculation.

Torre Titania has a surface area of 18,744 m2 for office use. EY is expected to fill the 22-floor tower, which is more than 100m tall and stands next to El Corte Inglés’ flagship store at Nuevos Ministerios.

The retail company, led by Dimas Gimeno, began construction of the property on the plot of the former Torre Windsor, which suffered irreparable fire damage in 2005 and was demolished. Six years later, the expanded shopping centre was inaugurated on this site and in 2013, the façade of the new skyscraper was finished completely.

Rents of more than €25/m2/month

El Corte Inglés itself has been marketing this new office space in the heart of Azca for the last few years. Only a few players in the real estate sector have had the opportunity to see inside Titania, and they say that the building is very modern, energy efficient and has a spectacular terraza on the roof of the building.

The rent charge for the building is expected to exceed €25/m2/month, according to market sources, somewhat higher than the average for the area, given that it is a brand new property.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake