WPP, a British multinational advertising and public relations company, has carried out one of the largest occupier deals in Spain this year with the acquisition and subsequent sale-and-leaseback of a former Telefónica headquarters building in Madrid.
WPP, a British multinational advertising and public relations company, has carried out one of the largest occupier deals in Spain this year with the acquisition and subsequent sale-and-leaseback of a former Telefónica headquarters building in Madrid.
WPP bought the asset at 26, Ríos Rosas from NZ Patrimonio for €150 mln and immediately thereafter sold the asset to UK fund manager M&G Real Estate in a sale-and-leaseback transaction.
As part of the transaction, the final owner M&G will carry our a comprehensive redevelopment of the building which in future will house over 2,500 WPP employees.
WPP plans to combine its offices in Madrid into a single corporate headquarters of over 36,000 m2.
'WPP has taken the opportunity to occupy the only large building available in the central business area of Madrid. Otherwise, WPP would probably have leased in the city’s periphery,' commented Humphrey White, a partner and head of Commercial real estate at Knight Frank.
The vendor was a consortium of banks, led by ING Real Estate Finance, that ook over the project from ailing Spanish developer Nozar. The developer has been under credit protection since 2010.
The banks were advised exclusively by Knight Frank and law firm Eversheds Nicea. James Andrews International and law firm Garrigues acted for WPP.
