El Corte Inglés on Portal de l’Àngel Avenue in Barcelona will close its doors today, August 31. This marks the end of an era for this emblematic establishment. This closure comes two years after the sale of the building to Redevco Iberian Ventures. This was a joint venture or joint venture between the Dutch real estate company Redevco and the U.S. investment fund Ares. The intention of the purchase was to transform the property into a mixed-use building. This decision is part of El Corte Inglés’ strategy to focus on larger, more profitable buildings, leaving behind properties that do not meet these criteria.
Closures of El Corte Inglés
In recent years, El Corte Inglés has closed other stores in Barcelona, including those located in Francesc Macià and in Plaça de Catalunya, on the corner with La Rambla. Currently, the company’s only department stores in the city are located on Avinguda Diagonal and Can Dragó, each at opposite ends of the city.
It is worth remembering that the Portal de l’Àngel building has a long history in the city. Formerly known as Can Jorba, this name was maintained even when the building housed the Galerías Preciados. It is a property that stands out for its surface area of 18,000 square meters distributed over four floors. In addition, Portal de l’Àngel street is one of the most expensive in the city in terms of commercial premises prices. Media experts say that it is also among the most expensive in Spain.
El Corte Inglés is one of Spain’s largest and most emblematic retail groups. Founded in 1935, its origins date back to a small tailor store in Madrid, which was bought by Ramón Areces Rodríguez, an entrepreneur from Asturias, with the financial support of his uncle, César Rodríguez. The original store was located on Preciados Street in Madrid and was strongly influenced by the American department store business model.
New owners
The sale of the building was finalized in 2022, and since then, the new owners have been working on repositioning the property. The plan includes a €200 million investment to transform the building into a commercial and office asset. Redevco Iberian Ventures has announced that the upper floors will be dedicated to state-of-the-art offices, while the lower floors will house high-end retail. In addition, sustainability criteria and differentiated tenant services will be implemented.
In the meantime, the commercial offer of the Portal de l’Àngel center will move to the Plaza de Catalunya building, where El Corte Inglés is developing a renovation plan to reorganize its commercial proposal. This move will allow the entire offer to be concentrated in one place, facilitating access to customers. In addition, the Plaza de Catalunya building will recover its sports section, an area that had been a fundamental part of its offer in the past.
The decision to sell the Portal de l’Àngel building is part of a broader plan by El Corte Inglés to optimize its real estate portfolio, focusing on those properties that are fully profitable. This strategy has led to the sale of other historic buildings in the city, such as Francesc Macià in 2019, although the final closure of this shopping center did not occur until 2021.
Privileged space
Redevco and Ares, for their part, see in this acquisition an opportunity to transform a prime space in the heart of Barcelona into a vibrant mixed-use destination. This aligns with their strategic focus on creating dynamic and sustainable places in urban areas. Israel Casanova, Redevco’s global chief operating officer, noted that the building’s location in a high-traffic area and its appeal to tourists make this investment particularly valuable. The transformation of the property will not only revitalize the area, but also contribute to the sustainability and livability of the city.
These types of projects reflect the growing trend in the real estate market to adapt commercial spaces to the changing needs of cities, combining retail and office uses to create more versatile and sustainable environments.
Image courtesy of https://www.elcorteingles.es, all rights reserved.
