Hines acquires the office building located on Avenida Diagonal in Barcelona, through its Hines European Core Fund (HECF). With this acquisition, the company increases its presence in the office sector and especially in Barcelona's CBD, a segment with a restricted offer and limited investment opportunities.
The property of 11,823 sqm above ground and 83 meters high, has 24 floors. In addition to the sale agreement, Hines and Banco Sabadell have signed a lease agreement, which will allow the bank to temporarily stay in the property, its main corporate headquarters in Barcelona, until the beginning of 2023. As of this date and in the long term, Banco Sabadell will occupy only four floors that include its main commercial branch and its private banking office in the city.
Following the agreement, Hines will carry out a comprehensive reform of the building following quality standards to transform the tower into a class A asset. The building will aspire to the Leed Platinum or Breeam Excellent certification and the highest energy efficiency to meet new demands of future tenants. Once the property is renovated, Hines plans to lease the office portion of the asset.
As a result of this operation, HECF will own four assets in Spain, in the logistics, retail and office sectors, and will continue to analyze opportunities in the residential rental sector.
“We are very happy with this new acquisition, with it we strengthen our position in the office sector in our country. The Barcelona CBD is a very restricted market, in which 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 reformed, this unique asset will perform positively in the market ”, says Vanessa Gelado, senior managing director of Hines in Spain .
“It is an emblematic office building in the center of Barcelona that reinforces our portfolio in Spain. It is a unique opportunity to acquire a unique asset in a privileged location that also has the potential to add value with its reform. After the work is complete, we trust that tenants will be attracted by the breathtaking views of Barcelona and cutting-edge technology, backed by leading ESG certifications. One of HECF's strategic objectives, across Europe, is to continue transforming iconic buildings, which are architectural heritage, into sustainable buildings that are fully prepared for the future", adds Simone Pozzato, fund manager of the Hines European Core Fund (HECF).
Garrigues and EY advised Hines on the purchase while Banco Sabadell was advised by Savills Aguirre Newman and Pérez Llorca.