Telefónica has completed the sale of its iconic building on Gran Vía in Madrid, sold to General de Galerías Comerciales (GGC) for a price close to 200 million euros. The transaction was formalized on September 1, marking a significant change in the ownership of this historic skyscraper.
The building, located at number 28 Gran Vía, was constructed between 1926 and 1929 under the design of architect Ignacio de Cárdenas Pastor, with the collaboration of Louis S. Weeks. With a height of 89 meters and a pioneering metal structure in Spain, it was the first skyscraper in Europe and held the record for the tallest building on the continent until the 1950s.
Currently, the property has an area of 32,000 square meters spread over 13 floors. It was originally conceived to house the first automatic telephone exchange in Madrid, which had a capacity for 40,000 lines, replacing the old manual exchange on Calle Mayor. A historic moment in this building was the first telephone conversation between Spain and the United States in October 1928, which took place between King Alfonso XIII and President Calvin Coolidge.
From its opening until 2008, the building was the headquarters of the Compañía Telefónica Nacional de España, when the company moved its headquarters to the Distrito Telefónica campus in Las Tablas, Madrid. During the Spanish Civil War, the building was damaged by artillery shells, but telephone service was never interrupted. Its basements served as an air raid shelter, and this experience was documented by writer Arturo Barea in his work La forja de un rebelde.
The sale attracted interest from several prominent investors, including Bain Capital and Generali, among others, who ultimately withdrew due to the heritage restrictions on the building, which is listed with the highest level of protection. The final offer from GGC included a fixed initial payment of 120 million euros, complemented by a variable component that could increase the total above 200 million euros.
In the short term, the operation ensures the continuity of Telefónica’s activities in the building, as the flagship Espacio Movistar store and Espacio Fundación Telefónica will continue operating with their respective programs and services for at least three years, thereby ensuring the preservation of its cultural and commercial legacy.
Source: www.infobae.com
