Telefónica Negotiates Sale of HQ in Gijón for €12M

14 December 2017 – Eje Prime

Telefónica is pushing ahead with its real estate divestment strategy. The Spanish telecommunications company is currently finalising the sale of the copper network centre that it owns in the shopping district of Gijón, for which it expects to receive around €12 million. The multinational company will continue to occupy the building, located between Calle Corrida and Plaza del Carmen, under a compulsory 7-year rental contract, which may be extended subsequently on an annual basis for up to five years.

The sale of this asset forms part of the divestment plan that Grupo Telefónica has launched for its non-strategic properties and to close its copper network centres. Behind this building, which is located in the shopping district of Gijón and which serves 3,000 homes, is going to be an investment group already known in the city. Not in vain, it is going to be the same company that acquired another historical building in the city, the headquarters of Banco Urquijo, according to El Comercio.

The new owners will receive an annual rental income of €600,000, although they will have to wait for a few years to really generate a return from this asset, and undertake the change of use, likely to for retail purposes, once Telefónica has turned off the light in this historical building, which was constructed in 1932.

Original story: Eje Prime

Translation: Carmel Drake