The Swiss insurance company charged consultant Savills Aguirre Newman of finding a buyer for the building. Nevertheless, it is estimated that the building might be sold by the end of the Summer, but maybe not by the same amount. According to information newspaper Expansión gathered from market sources, the building’s value might even be negotiated below the estimated amount due to adjustments generated by the pandemic.
The building has 9 floors and is located at number 10 Calle Francisco Gervás, in the capital’s northern area, and it is currently occupied by Madrid’s Courts of First Instance.
During the last year and a half, Zurich has been particularly active within the Iberian market, purchasing several office buildings in Madrid and Lisbon. Building Velázquez 34 located in the Spanish capital should be the next acquisition since by the end of June Zurich was already under advanced negotiations with Grupo Rosales, which is developing it. This is an operation estimated at 120 million euro.
The conclusion of these operations will bring dynamics to the Spanish office market which, even during the pandemic, registered investment of around 1.000 million euro up until June, in line with the amounts registered during the last few years, as revealed by Savills AN. However, the pandemic’s impact on the segment’s yields is already being felt, since during the second quarter they increased 10 base points. Now it is set at 3.35% in Madrid, according to information reported by JLL.