MERLIN Properties acquires Torre Glòries in Barcelona
MERLIN Properties Socimi, S.A., (“MERLIN Properties”) (MC:MRL), has formalized the acquisition of the iconic building Torre Glòries, leading to a significant expansion of its footprint in the Barcelona prime office market. The property is located in the junction of Avenida Diagonal with Plaza de Les Glòries, at the core of the tech-oriented business district known as 22@. With 142 meters’ height, the skyscraper is the third tallest building in Barcelona.
The building was originally designed by prestigious arquitects Jean Nouvel and Fermín Vázquez and opened in 2005. It comprises a gross area of 37,614 sqm, in ground level plus 34 above ground floors, plus an auditorium with over 350 pax seating capacity. It also benefits from 300 parking spaces located in four below ground levels. The total constructed area amounts to 51,485 sqm.
22@ business district is the most dynamic area in the Barcelona office market and is now consolidated as the reference business area hosting tech oriented and innovative companies such as Cisco, Ebay, Yahoo, Deutsche Telekom, Sage, Sap, Capgemini and Indra.
The acquisition price amounts to € 142 million, representing a capital value of € 3,775 per sqm. MERLIN will be investing approximately € 15 million for multi-tenancy reconversion works to own one of the most attractive office buildings in Barcelona. MERLIN targets annual recurring revenues of € 10.3 million, representing an ERV yield of ca. 6.5% after completion of works.
Through this acquisition, MERLIN will increase the relative weight of Barcelona in its office portfolio, which moves from 17% to 19%, and expands significantly its presence in prime and CBD areas of Barcelona, which will now represent 40%.