In the Spanish office sector, a notable transaction has unfolded as Freo and BC Partners completed the acquisition of the historic Novartis headquarters. Located in Barcelona on Gran Via de les Corts Catalanes, the building spans more than 12,000 square meters. The advisory team included CBRE for Novartis, with Freo and BC Partners represented by Savills during the process. This development was confirmed to EL PERIÓDICO DE ESPAÑA by Freo sources within the Prensa Ibérica group.
Earlier reports noted that the asset entered the market as remote work became more prevalent following the pandemic. Novartis signaled its intention to pursue a sale and leaseback arrangement, aiming to secure ongoing income for new owners even as portions of the building remained leased. The precise sale price was not disclosed, though one involved party suggested a figure in the 40 to 45 million euro range. BrainsRE.news later noted that the new owners plan to modernize the property to align it with current sustainability and ESG standards. The redesign is expected to include an auditorium, dining facilities, meeting rooms, and three terraces.
The building was constructed in 1967 as an eight-story structure and has remained in Novartis’s hands ever since. It currently hosts around 700 employees and sits at 764 Gran Via de les Corts Catalanes, in the Fort Pienc district of Barcelona. This longstanding asset is a focal point in the city’s office market and reflects the shift toward institutional investment in urban cores.
offices in Barcelona
During the first three quarters of the year, Barcelona’s office investment activity reached a total of 835 million euros, with 460 million euros transacted between July and September alone, according to the latest Savills report. The data include the sale of the new Glovo headquarters, an operation that had been anticipated for months. The prominent deal involved Freo selling to GMP, a Socimi owned by the Montoro family and the sovereign wealth fund of Singapore, GIC, which held assets totaling around 200 million euros.
The second-largest operation in the third quarter involved the purchase of a building located at 2-6 Avenida Josep Tarradellas, where Franklin Templeton acquired the asset from DWS in a deal reported by this publication as a direct, newspaper-led transaction.
Savills’ analysis indicates that international investors continue to be the primary engine of activity in Barcelona, accounting for about 62% of trading volume. When noting the GMP transaction that involved GIC, the share of foreign capital rises to roughly 71%. The market faces a few hurdles as profitability requirements tighten for investors. The annual capitalization rate has increased slightly to 0.55% this year. The practical effect is that a property producing 100,000 euros in annual income, which previously traded at a 3.50% yield and carried a market value around 2.8 million euros, might now transact at a 4% yield with a market value near 2.5 million euros. Such a value adjustment can be partially recovered if rents keep pace with inflation and the property can adjust rents accordingly to reflect changing market conditions.
Overall, the Barcelona office market continues to adapt to shifting work patterns, with investors showing a preference for assets that can be upgraded for sustainability and energy efficiency. The city’s strategic position within Southern Europe, coupled with an active cross-border investment community, supports ongoing interest from global buyers seeking stable income streams and modernized facilities that meet ESG expectations.