International real estate advisor Savills and Catella have brought to the market no.3 Paseo de Recoletos Street, Madrid, on behalf of VENDOR, for a price in the region of €50 million.

The property is located in the Cibeles Square, a neo-classical complex of marble sculptures and fountains that has become one of Madrid’s most famous landmarks.  Cibeles is home to the old headquarters of Spain’s Postal Service, the Bank of Spain and the General Staff Headquarters of the Spanish Army. The east side of the square is occupied by the Palace of Linares, which currently accommodates Casa de América.

The 5,434 (58,493 sq ft) building at no.3 Paseo de Recoletos Street was completed in 1975 and comprises a ground floor with six levels of office accommodation. It has four levels of parking, totalling 65 spaces, in the basement.  In 2000, major refurbishment works were carried out and were followed with a significant fit out in 2006 by URALITA for its corporate headquarters.  The building is 100% let to Grupo Uralita until July 15th 2010, from this date on a new lease contract will take in effect with the following conditions:

• Area: 2,601 m² (27,997 sq ft)

• Parking spaces: 30

• Lease conditions and terms

• Beginning of lease:     15/07/2010

• Lease term:      10 years (14/07/2020)

• Mandatory:      3 years

Uralita is a Spanish multinational corporation with 100 years of history. It manufactures construction materials and is a leader in the markets and sectors in which it operates. The strategic business areas in which Uralita operates are insulation, tiles and piping, being the market leader in Spain and the third European manufacturer of insulators. The company has a workforce of 4,000 employees, operates in 35 countries and has 39 factories in operation and is listed on the continuous market on the Spanish Stock Exchanges (Madrid, Barcelona and Valencia).

Savills have also been selected by the owner as exclusive agents to conduct the letting process of Paseo de Recoletos 3 once Uralita vacated part of the office building.

Rafael Merry del Val, General Director of Savills says: 'During 2009 there was a window of opportunity that was utilised by Spanish family offices but now we are seeing a contraction in yields and a rise in value, very emblematic buildings such as Paseo de Recoletos No.3 will see great demand as it is these assets that will ultimately achieve the good revenues.”