Savills, as exclusive selling agents, has advised Ballester on the sale of the prime office building Paseo de Recoletos 3. The property has been sold at capital value per m² not seen since 2008 and a net initial yield level of 2007.

In the present market the two month sale and due diligence period has exceeded expectations and the transaction has been a success for both the seller and the buyer. We should emphasize that the transaction has taken place as part of a managed sales process which attracted strong interest from a number of different parties.

The building comprises a ground floor of commercial/office use with six storeys of exclusive office space above with a combined total area of 6,016.49 square metres. There are also 65 parking spaces over 4 basement levels. The building is located in the heart of Madrid’s CBD, on one of the four corners of the prestigious Plaza de la Cibeles. It is surrounded by landmark buildings such as the Bank of Spain and the Palacio de Comunicaciones – home to Madrid town hall.

Savills comments: 'Given the scarcity of product, investor demand for city centre offices remains strong, regardless of initial yield levels. Traditional private investors, who seek these types of buildings, focus more on quality, location and capital value per m². National investors are the most active when it comes to assets such as this and are clearly focused on Madrid CBD investment product, understanding the defensive nature of purchases and bearing in mind the high capital values and rents achieved in boom times as well as the situation in times of crisis when occupancy levels are generally lower.'

The sale of this emblematic building in Madrid stands out as being one of the 2010 CBD investment markets most important transactions due to its location, value and yield.