Square Asset Management purchases Barcelona office for €40m

Portuguese asset manager Square Asset Management has acquired a 23-story building in Barcelona's Diagonal Mar district from Swiss insurer Zurich Insurance for €40 mln.

266 Passeig Taulat

The building, previously the headquarters of the Catalan Government's Department of Social Rights and Inclusion, is located at 266 Passeig Taulat and spans 18,000 m2. The distinct architectural design, created by Josep Lluís Mateo, features two blocks connected by a central concrete structure.
This transaction, brokered off-market by JLL, signals renewed investor interest in Barcelona's office market after a period of decline attributed to the rise of remote work. Zurich originally acquired the property in 2014 as part of a larger €201 mln deal with the Catalan government, which was seeking to reduce its deficit.
This sale is one of several divestments Zurich has made in Barcelona recently, including the sale of two office buildings to Alting for €50 mln last autumn and another asset sale for €40 mln the previous year.
The transaction, Square AM's largest in Spain, is part of a broader €200 mln strategy to capitalize on the recovering commercial real estate market in the Iberian Peninsula, focusing on office buildings and shopping centres. In addition to the Barcelona acquisition, Square AM is nearing the completion of a logistics warehouse acquisition in Spain and has made offers on other properties in both countries.
In a separate transaction last month, Square AM's Property Core Real Estate Fund acquired a €5.5 mln logistics property in Algarve Retail Park, Albufeira, leased to Conforama. The 7,908 m2  space, with a long-term lease agreement, strengthens the fund's portfolio with a leased asset in a high-traffic area.
Square AM has over €2 bn in real estate investments and a 14% market share.