International real estate firm Hines has acquired the office building located at Avenida Diagonal 407 in Barcelona, on behalf of its Hines European Core Fund (HECF), from Banco Sabadell.
Financial details were not disclosed.
The tower, located on Avenida Diagonal, 407, at the intersection with Calle Balmes, comprises 11,823 m2 above ground level and has a height of 83 metres.
Offices are laid out over 22 floors. Along with the sales agreement, Hines and Banco Sabadell have entered into a lease agreement that will allow the bank to remain temporarily at the property, its former main corporate office hub in Barcelona, until early 2023.
From then on, Banco Sabadell will occupy four floors including its main commercial branch and private banking office in the city for the long term.
Following the agreement, Hines will carry out a comprehensive refurbishment of the building to transform it into a Class A asset. The building will target LEED Platinum or BREEAM Excellent certification and Class A energy efficiency.
Once the property is renovated, Hines plans to lease the remaining part of the office space on a multi-tenant basis.
As a result of this transaction, HECF will own four assets in Spain, in the logistics, high-street retail and office sectors and continue to analyse opportunities in the residential-for-rent sector.
Vanessa Gelado, senior managing director and country head of Spain, at Hines said: 'We are very pleased with this new acquisition, as it enables us to strengthen our position in the office sector in Spain.
'Barcelona’s financial district is a highly restricted market where very few investment opportunities arise each year. The Class A office market has historically performed very well in Barcelona, and at Hines we have no doubt that once this unique asset is refurbished, the market’s upward trend will continue.'
Simone Pozzato, fund manager – Hines European Core Fund (HECF), added: 'This is a true landmark office building in the nub of Barcelona which bolsters our portfolio in Spain.
'It’s a rare opportunity to acquire a trophy asset in such a fantastic location which also has potential to add value via an actively managed refurbishment programme.
'One of HECF’s strategic targets, across Europe, is to continue to turn iconic existing buildings with strong architectural heritage into even greater future-proofed green buildings.'
Garrigues and EY advised Hines on the purchase of the property, while Banco Sabadell was advised by Savills Aguirre Newman and Pérez Llorca.
