Colonial has closed the sale of three floors of an office building located at number 27 Paseo de Recoletos in Madrid to Estinvest Properties, a ‘family office’ dedicated to real estate investment and management, for a value that exceeds 19 million euros.

The three plants, which add up to a total of 2,000 square meters, were acquired by Colonial between 2019 and 2021, as explained by the SOCIMI in a statement.

This operation is part of Colonial’s ‘Flight to Quality’ divestment program, which during the last quarter of 2023 and early 2024 has closed operations for a volume of 150 million euros, with a 5% premium over the last appraisal .

The SOCIMI launched a first divestment program at the end of fiscal year 2022 with the aim of achieving sales of more than 500 million euros. Finally, it has been completed with 574 million, of which 84 million were made at the end of 2022 and the rest during the first nine months of 2023.

Additionally, Colonial has already launched a second sales program, which includes the residential part of Madnum, recently sold to Bankinter for 130 million euros, and this asset located on Paseo de Recoletos.

The sum of the two programs amounts to 723 million euros, corresponding to a total of 12 buildings in Madrid, a small premises in Barcelona and two assets in Paris. The divestment process has also allowed Colonial to increase its current liquidity to 2,903 million euros.

“Colonial has once again managed to direct investor interest in the city of Madrid towards one of its assets with an advantageous operation for the objectives of the ‘Flight to Quality’ program, which allows capital to be recycled, always in line with a premium on appraisal, to generate new opportunities for value creation,” said the Investment Director, Juanma Ortega.

The company has had the advice of the international real estate consultancy JLL. “With this operation, we have been able to capture the interest of local actors with a long-term vision who value the current and future potential of office assets in the city of Madrid,” added the director of National Investment of JLL Spain, Ignacio Sobrino.