The iconic building at Gran Vía 28 will no longer be “the Telefónica building.” Unofficially, it will likely take a long time for people to stop calling it that, but officially, Telefónica has finalized the sale of the building located in downtown Madrid for a reported €200 million ($232.4m) to General de Galerías Comerciales, as part of its strategy to optimize its real estate assets.

The transaction, finalized on September 1, is part of the company’s “Transform & Grow” strategic plan, which calls for more efficient management of its real estate portfolio. The building, which served as Telefónica’s headquarters for decades, currently spans approximately 32,000 sqm (344,445 sq ft) across 13 floors.

Although the property ceased to function as the main corporate headquarters after Telefónica moved to Distrito Telefónica in Las Tablas, also in Madrid —where a large part of the group’s corporate and technological activity is currently concentrated—it remained a symbol of the brand and a venue for numerous events.

Gran Vía 28 nevertheless maintains a close connection to the history of Spain’s telecommunications infrastructure. Built between 1926 and 1929, the building housed Madrid’s first automatic telephone exchange, with a capacity of 40,000 lines, and it was from there that the first telephone call between Spain and the Americas was made in 1928.

Standing 89 meters (292 feet) tall with a steel frame, it was one of Europe’s first skyscrapers and the tallest building in Madrid until 1953. Telefónica maintained its headquarters there until its gradual relocation to the new Distrito Telefónica complex.

Currently, Gran Vía 28 no longer serves a function directly related to the operation of telecommunications networks. The building houses the Espacio Fundación Telefónica and the Espacio Movistar, which, despite the change in ownership, will continue their operations.

Telefónica’s move to Las Tablas marked the transformation of the former Gran Vía building into a primarily real estate asset. Distrito Telefónica became the company’s main corporate complex in Madrid and continues to serve as the address for its key corporate and shareholder relations departments.

The sale of Gran Vía 28 is part of a broader strategy to streamline assets. For a telecommunications company, consolidating corporate functions allows it to separate historic or commercial properties from those that currently support its operations and technological activities.

The new owner is General de Galerías Comerciales, a company controlled by Tomás Olivo. The transaction was subject to the building’s heritage protection status, which limits the possibilities for its transformation and change of use.

Telefónica will also maintain part of its presence in the building through Espacio Movistar and the Telefónica Foundation, thereby preserving some of the uses linked to the company despite the change in ownership.

This piece was automatically translated from DCD’s Spanish site and edited by a member of DCD staff.