Spanish REIT, Colonial SFL & Andbank Investors Acquire Naturgy Headquarters in Madrid for €80M+

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In a key move within the Spanish real estate market, Colonial SFL, alongside a group of investors led by Andbank España, has successfully acquired the office building that serves as the headquarters for Naturgy in Madrid. The acquisition, valued at over €80 million, was finalized from Grosvenor, marking a significant transaction in Spain’s premium office space sector.

Key Details of the Acquisition

The building, which spans 13,000 square meters across 13 floors, was completely renovated in 2021 to accommodate Naturgy’s central offices. The energy company, which signed a long-term lease for the building, is firmly established as the building’s anchor tenant, ensuring stable and reliable rental income. The renovation transformed the property into a modern, high-tech space designed to meet the demands of today’s office users, with a strong focus on sustainability, efficiency, and connectivity.

The acquisition of this prime office asset further strengthens Colonial SFL’s position in the European market as a leader in high-quality office spaces. Juan Manuel Ortega, Chief Investment Officer of Colonial SFL, emphasized the strategic nature of the acquisition, stating: “The acquisition of Naturgy’s headquarters in Madrid reinforces our commitment to properties in prime locations and consolidates Colonial SFL’s leadership position in the European high-end office market.”

This acquisition is part of Colonial’s broader strategy to focus on buildings that meet the growing demand for efficient, sustainable, and well-connected spaces. Ortega added, “This is a deal that aligns perfectly with our long-term value creation vision, responding to the increasing demand for office spaces that offer sustainability, connectivity, and efficiency.”

Investor Group Led by Andbank España

The acquisition was made possible by a group of investors led by Andbank España, which invested a significant portion of the capital required for the deal. Oriol Huguet, Director of Andbank, commented on the strategic opportunity presented by this acquisition: “Participating in the purchase of such a flagship asset alongside Colonial SFL allows us to enter a market characterized by favorable price dynamics and liquidity, with a long-term, high-quality tenant in place.”

The group’s involvement reflects the continued confidence in Spain’s office real estate market, particularly in Madrid’s central business district, which remains one of the most attractive locations in Europe for institutional investors.

The Role of Advisory Firms

The acquisition was advised by leading real estate consultancy firms Cushman & Wakefield and Savills, which provided expert guidance throughout the process. From a legal perspective, the deal was supported by law firms Gomez Acebo & Pombo and Simmons & Simmons, ensuring a smooth transaction. Savills IM acted as the Asset Manager of the property, while EY conducted the commercial due diligence, ensuring that all financial and legal aspects of the deal were thoroughly assessed.

Strategic Importance of the Acquisition

Colonial SFL’s acquisition of the Naturgy headquarters further consolidates its reputation as a leading investor in premium office spaces across Europe. The company’s focus on high-quality assets in strategic locations remains a core part of its investment philosophy. The decision to invest in the Naturgy building aligns with the growing trend of institutional investors seeking long-term, sustainable assets that offer both stability and growth potential.

Madrid’s office market has remained resilient, and this acquisition comes at a time when demand for modern, sustainable office buildings is on the rise. Companies are increasingly prioritizing office spaces that are not only functional but also aligned with sustainability goals. The Naturgy headquarters, with its comprehensive renovation and focus on energy efficiency, fits this demand perfectly.

Colonial SFL’s purchase of Naturgy’s headquarters, alongside the investment from Andbank España and its partners, marks a pivotal moment in Spain’s commercial real estate market. With a strong tenant in place and a property located in one of Madrid’s most desirable business districts, this acquisition reinforces Colonial SFL’s position as a leading player in the high-end office market. As businesses continue to seek out sustainable, efficient, and well-connected spaces, this acquisition demonstrates Colonial’s strategic vision for long-term value creation in the European real estate sector.

With high-quality assets like the Naturgy headquarters, Colonial SFL and its investors are well-positioned to benefit from the continued evolution of Madrid’s office market, which remains one of the most sought-after in Europe.