Tomás Olivo has completed the acquisition of Telefónica’s historic headquarters at 28 Gran Vía in Madrid for €200 million, according to CincoDías, citing sources familiar with the transaction.
The deal was formally completed on 1 September, bringing to a close the agreement first reported in May, when the Spanish businessman was finalising the acquisition of the property through his company General de Galerías Comerciales.
The final consideration is below the €250 million to €300 million range initially envisaged by Telefónica when it launched the sale. The building attracted interest from several investors, but its high level of heritage protection, planning restrictions and the potential cost of refurbishment progressively narrowed the scope for redevelopment and weighed on the offers submitted.
The transaction had remained pending since the parties reached an initial agreement in May. According to the latest information from CincoDías, the buyer and seller have agreed an economic structure linked to the evolution of the future project, although the specific terms have not been disclosed and Olivo’s plans for the property remain unclear.
Gran Vía 28 comprises approximately 32,000 sqm and benefits from Madrid’s highest level of heritage protection, requiring the preservation of its main architectural features. Its planning designation is linked to community, cultural and infrastructure uses, significantly restricting its conversion into hotel, residential or conventional retail space.
Up to half of the building’s surface area may be allocated to cultural and educational activities, while any attempt to introduce more commercially lucrative uses would require navigating a complex planning and administrative process. These constraints, combined with the investment requirements associated with a protected building, are expected to shape the repositioning possibilities available to its new owner.
Designed by architect Ignacio de Cárdenas, Gran Vía 28 was built between 1926 and 1929 and inaugurated in 1930. Standing at almost 90 metres, it was one of Europe’s earliest skyscrapers and remained Spain’s tallest building until the construction of Edificio España in 1953.
The building was originally conceived as Telefónica’s headquarters, with infrastructure capable of handling 40,000 automatic telephone lines. It subsequently underwent two major interventions, in 1987 and 1992, with the latter transforming it into a smart building.
Although Telefónica moved its headquarters to Distrito Telefónica in Las Tablas in 2006, Gran Vía 28 has continued to accommodate institutional, commercial and cultural activities. It currently houses Fundación Telefónica, exhibition spaces and Movistar’s flagship store, which reopened in September 2024 following a refurbishment covering around 2,800 sqm.
The acquisition adds one of Gran Vía’s best-known properties to Tomás Olivo’s portfolio. The businessman controls General de Galerías Comerciales, a company specialising in the development and management of large-scale retail complexes.
General de Galerías Comerciales owns assets including La Cañada in Marbella, Nevada Shopping in Armilla and Gran Plaza in Roquetas de Mar. Its development pipeline includes Valdebebas Shopping in Madrid, Infinity Shopping in Valencia and Tarraco Shopping in Tarragona, alongside extensions and new phases at several of its existing schemes.
At the end of June, Tomás Olivo announced a €1.5 billion investment programme to finance these projects and complete the acquisition of Gran Vía 28.
For Telefónica, the sale represents the disposal of a property that ceased to serve as its main corporate headquarters two decades ago, while retaining a strong connection to the company’s history and identity. The transaction forms part of the telecoms operator’s broader strategy to reduce costs and debt, which in recent months has also involved the disposal of several Latin American businesses and the sale of its stake in BBVA.
