In the coming months, Colonial is entering a new phase in real estate: healthcare facilities. Ibex-35’s second-largest real estate company by market value and portfolio value, trailing only Pontegadea (Amancio Ortega’s investment vehicle), is moving on a transformation path for an office building in the 22@ technology district, aiming to integrate socio‑sanitary and hospital functions within a broader urban complex, according to real estate market sources cited by ACTIVOS and reported by Prensa Ibérica.
Company 22@ owns six buildings totaling more than 93,600 square meters, including locations on Ciutat de Granada at 150, Diagonal, and properties at 220-230-240 Diagonal, 197 Sancho de Avila, 110-130 Llacuna, and 56-70 Llacuna plus 42 Llacuna. Plans to change the use of these properties are at an early stage, and even if any conversion progresses, it is expected to involve only a subset of features. Colonial declined to specify which property might be converted when consulted.
Colonial’s strategy mirrors the broader trend in real estate where industrial assets are acquired to support long-term improvements and then held for rent. This rental period typically spans at least three years to satisfy current Socimis regulations, after which a sale may occur to realize capital gains. In Catalonia, the pattern has tended to extend beyond three years, reflecting market dynamics and regulatory considerations.
The catalyst for potential investment includes an oversupply in Madrid’s office market, particularly within the 22@ district, formerly an industrial zone transformed into a financial hub. The pace of new leasing has been brisk, but a surge of vacant space and evolving work models, including hybrid work, mean it will take time for the market to adjust.
Among the buildings viewed as likely candidates for active use changes are Diagonal 197 and Sancho de Avila 110-130. Sustainability certifications are increasingly a milestone for properties seeking a new lease on life. Colonial’s site indicates progress toward certification for the former, while the latter has not specified certification status. The site on Sancho de Avila, purchased from the Castellví family in 2019, previously housed T-Systems under lease until 2023. With that vacancy, renovations are anticipated, and when the space returns to the market, it is favored to be transformed into a health complex.
Future of the former IBM headquarters awaits
Numbers 26 and 28 Santa Hortensia Street in Madrid housed North American tech offices on Colonial-owned property until recently. Infrastructure services and management decisions led to a relocation of IBM’s headquarters to Azca in the capital’s financial district, where 10,500 square meters were leased to Merlin Properties. Kyndryl has moved to the Los Cubos Building near the M-30, owned by the Henderson Park fund.
With the building now vacant, Colonial is reassessing its options. The preferred plan appears to be a mixed complex combining offices with residential units. Prosperidad is a neighborhood that predominantly features housing, and demand remains solid. The company has a track record of developing multi-use complexes, including Madnum, a new campus in Méndez Álvaro in southern Madrid. The project plans allocate 56,000 square meters of its 90,000 total for offices, with the remainder dedicated to rental apartments and commercial space.
Investing in the socio-health sector
The entry into the hospital sector, spearheaded by Juan José Brugera and Pere Viñolas, follows a broader industry trend. Saint Croix, the property vehicle of Pryconsa owners the Colomer family, has reached a significant valuation. An agreement with Sanitas to build a hospital in Valdebebas marks one of the city’s major post‑pandemic projects adjacent to Barajas Airport.
Within the socio-health sector, nursing homes remain the most dynamic asset class due to aging demographics and rising care needs. Substantial funds are building out extensive portfolios, while a shortage of public spaces and aging facilities further supports growth.
A second notable trend is life science complexes, which merge pharmaceutical research labs with office space to drive activity. The north of Madrid is a hotbed for this sector, with rapid innovation and increased dependency on medical devices fueling expansion, according to a recent JLL report on the topic.