Merlin Properties is negotiating the sale of an office portfolio in Madrid that could be converted for residential use. The deal would involve up to 41,000 sqm of floor space and would enable part of these assets to be converted into more than 400 homes.
The divestment would amount to around 7% of Merlin’s office stock in Madrid and would take place between 2026 and 2027. Of the total volume, 33,000 sqm have already been sold or are at an advanced stage of negotiation, while a further 8,000 sqm would be vacated for conversion into co-living.
The transaction comes against a backdrop of increased focus on the conversion of offices into residential properties, particularly in markets facing pressure on housing supply. In Madrid, regulatory changes aimed at facilitating certain changes of use have opened the door to this type of transaction, although their viability depends on the urban planning, technical and commercial characteristics of each asset.
The company also plans to allocate a further 27,000 sqm of office space to educational uses. Taken together, these transactions form part of the SOCIMI’s asset rotation, which maintains offices as one of its main business lines, while increasing the weighting of data centres in its medium-term strategy.
