4/07/2014 – Expansion
The local government of Catalonia (Generalitat) received the one and only offer for the 13 subsidized building lot put up for sale by the authority. Unfortunately, the amount proposed by insurance group Zurich – €172 million – is by 20% modester than expected.
The first bidding, asking €215 million for the office package, was unattended. At the second try, only Zurich arrived with its offer.
Total size of the properties areas adds up to 94.000 square meters. Leasing to Generalitat for the stated 5 – 20 years, Zurich may gain a 7.5% return.
Moreover, the investor may terminate the agreement within a year by sending a notice 18 months ahead. The new clause turns out to be very attractive for buildings in the center of Barcelona and offering possibility of being converted into hotels. This sort of asset is currenly extremely wanted by investors eyeing the city.
In 2013, real estate investment in Barcelona crossed €1.2 billion, by three times more than a year earlier. The sector predicts that in 2014 the volume may largely exceed the amount, given the transactions like this one and the purchase of the Torre Telefónica tower for €107 million by Axa last week.
Original article: Expansión (by M. A.)
Translation: AURA REE