Link Securities | The company is reportedly considering selling its corporate headquarters, known as District C, as part of the strategic review that the group will unveil in the coming weeks, according to elEconomista.es. According to the newspaper, the company is considering a real estate transfer that includes the 15 buildings (between five and eleven storeys) in Las Tablas, located in the north-east of Madrid. Market sources estimate that the valuation of the nearly 200,000 square metres of office space, together with the 190,000 square metres of access and landscaped areas, would range between €800 million and €900 million. Sources at Telefónica consulted by the newspaper declined to comment.
If the operator’s executive team decides to sell its central facilities, the multinational would continue to operate as normal in the same location, under a sale and leaseback model. In other words, Telefónica would sell the aforementioned assets but, at the same time, would establish a very long-term rental contract to continue using them. Industry sources also indicate that, in the event of a sale with lease, Telefónica’s property rental expenses could exceed €22 million per year, at a rate of €13 per square metre.
