Spanish telecommunications giant Telefónica to sell Madrid headquarters for 200 million

Telefónica put Europe's first skyscraper, located on Gran Vía 28 in Madrid, up for sale in June 2025.

The Telefónica headquarters were looking for a new owner, as current proprietor was seeking to cash in on millions of euros. Murcia billionnaire Tomás Olivo is the likely buyer, with an offer of 200 million euros.

The figure falls below the company's initial expectations, as Telefónica had hoped to secure close to 300 million, but it adds to the long list of non-strategic asset disposals overseen by the British-born Catalan executive. Those sales have already generated around one billion, allowing the company to reduce debt and secure liquidity for future strategic investments.

Under the deal, the 13-storey Madrid landmark, which currently houses the Espacio Fundación Telefónica cultural centre and a flagship shop on the ground floor, would pass into the hands of Olivo.

Tomás Olivo is Spain's sixth wealthiest individual according to Forbes, with an estimated fortune of almost 4.6 billion euros. The expectation is that he will use the building for commercial purposes.

Olivo built his fortune through shopping centres and retail parks. Through his company General de Galerías Comerciales (GGC), he currently operates 14 retail complexes across Spain. Records from Spain's securities market commission (CNMV) also identify him as the third-largest shareholder in Unicaja.

His offer beat rival bids from investment fund Bain Capital as well as proposals linked to Rafael Serrano, Ardid and the groups Generali and Drago.

Architect Ignacio Cárdenas Pastor designed the building during the early decades of the 20th century "to flatter potential shareholders". More than a century later, its singular nature still poses challenges for buyers.

Despite Madrid's property boom and soaring prices, many investment funds withdrew from the bidding process for the skyscraper made famous by films and novels.

The building carries level 1 singular protection status (the highest distinction in Madrid's protected buildings catalogue). Regulations therefore require the owner to preserve the skyscraper's architectural features, construction elements, volumes, forms and original decorative details in full.

In addition, a 2003 agreement between former Telefónica chairman César Alierta and Madrid Mayor José María Álvarez del Manzano established the site as a mixed infrastructure and cultural-use property. Urban planning restrictions imposed by Madrid city council prevent any conversion into a luxury hotel or large-scale retail complex. Those limitations discouraged many potential buyers.

Although Telefónica is closing a chapter in the center of Madrid, the building's original name is likely to continue living in the collective consciousness of locals.