Telefonica Earns €65 Mn On 2014 Property Sales

12/01/2015 – Expansion

In its five 2014 sale & leaseback deals, Spanish broadband and telecommunications provider Telefonica earned €65 million in total.

The five properties, both of residential and dotational use, are located in various cities of Spain. They were parts of a nine-building portfolio which was put up for sale at the end of 2013. Rapid sales were due to their excellent locations and attractive, 7-year lease contracts offered by Telefonica.

Specifically, two of the buildings stand in the neighbourhood of Salamanca, Madrid, and the other three in the centers of the cities of San Sebastian, Bilbao and Valencia. Consulting firm Aguirre Newman advised on the sales of the Madrid, Valencia and San Sebastian properties, while CBRE assisted at the transfer of the Bilbao unit.

Staying as a tenant in the buildings, Telefonica pledged to pay €550.000 annually for the Madrid offices and €750.000 for the Valencia asset, to give some examples.

The five properties were acquired by private investors, both Spanish and foreign. The latter concentrate some real estate purchases valued at between one million and ten million euros. In general, this type of buyers streamline their acqusitions through family offices and strike buildings, retail premises and residential assets, well-located in the centers of large cities and let to solvent lessees.

In the following weeks the remaining four properties for sale are set to find new owners. They are situated in Madrid, Barcelona and San Sebastian.

Telefonica’s new strategy rests on better exploitation of its former headquarters and reinforcement of its bet on the fibre-optic communication. The last will result in closing many central offices linked to the traditional copper-pair networks and therefore leaving multiple buildings, spacious and downtown, unused.

 

Original story: Expansión (by R. Ruiz & I. Del Castillo)

Translation: AURA REE

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