The Estel Building, for years the headquarters of Telefónica in Barcelona, is changing hands. The German real estate investment manager Freo is finalising a deal to acquire the asset for 120 million euros. Freo teamed up with another leading investor in the Spanish real estate sector, Bain Capital, ousting the other best-positioned candidate: Starwood.
It’s not the first time that the property has changed hands. In 2007, the private equity fund Carlyle acquired the property for 220 million euros, planning on developing luxury housing. But real estate crisis ended its plans. In 2014, it was acquired by Platinum Estates for 56 million euros, this time with the idea of developing a luxury hotel of the Hyatt chain and about 200 upmarket homes.
Its current owner, the US fund Sunrich, controlled by the Indian billionaire Dino Gidwani, acquired the property two years ago to turn it into “the best residential building in Barcelona.” It paid 220 million euros for it.