Spain's Ballester to sell central Madrid office building

Valencia-based real estate developer Ballester has hired Savills and Catella to sell its landmark Paseo de Recoletos office building in Madrid. The property is currently 50% vacant, with the rest leased to Spanish construction materials producer Uralita.

Developed in 1975 and renovated in 2001, the building is located on the central Cibeles square and offers nearly 5,500 m² of net office space over six floors and 65 parking spaces. The property is currently valued at around EUR 50 mln. Ballester bought the asset at the market peak in 2006 in a EUR 71 mln transaction with Pryconsa.

According to Savills' Spanish office, the building had been at the centre of investors' attention for months, prompting Ballester's decision to mandate the two brokers for the sale. 'The Spanish real estate market has become more active in terms of appetite for acquisitions,' said Rafael Merry del Val, managing director of Savills in Madrid.