The times when consultants pushed to reduce immobility (and now, amidst the bubble, they are buying back what they sold)

The Catalan administration is reversing a decision from 2012 that forced it to sell properties to generate liquidity. Now, after a decade paying millions in rent for those same properties, it has decided to buy them back.

## The rental bill: a past that repeats itself

Ten years ago, the **Generalitat de Catalunya** was forced by the need for liquidity to make a drastic decision: selling part of its real estate portfolio. Between **2012 and 2014**, the Catalan administration transferred a total of **38 buildings** in Barcelona, obtaining **596 million euros** for them. At that time, the operation was presented as an emergency solution to treasury tensions. However, time has shown that this measure came with a long-term cost. Currently, the Generalitat pays **183.8 million euros annually** as rent for the use of about **4,800 properties**, of which **576**, or **12%**, are rented out.

Of this global rental figure, a very significant portion, **62.09 million euros**, corresponds to contracts signed under that sale operation or new agreements compensating for lost surface area. Most notably, the Catalan administration continues to pay **46.6 million euros** in rent for **23 of the buildings it sold a decade ago**. This situation has led the current Minister of Economy, **Alícia Romero**, to label the 2012 decision as a "mistake," regretting that the Generalitat depleted its capital and is now paying rent for properties that, if they had been retained, would already be amortized.

## The strategic shift: from tenant to owner

The Catalan administration has decided to undergo a radical turnaround in its real estate policy. Faced with market instability and the growing rental bill, the Generalitat has initiated a process to acquire properties to pogre abandon tenancy agreements. The conclusion is clear: in the current market context, buying proves more profitable than continuing to pay rent. This strategy not only seeks long-term cost reduction but also ensures the permanence of public services, avoiding the uncertainty of having to move every so often.

The public contract regulations require the administration to put searches for new buildings out to tender when a rental agreement expires. This means the Generalitat cannot directly negotiate with a landlord regarding renewal; it must undergo a bidding process that could oblige it to change locations. For an administration whose public service has a "calling of permanence," this constant mobility is undesirable for both the citizen and the services themselves. Therefore, the policy of readquisitions, begun by the previous executive under **Pere Aragonès** and accelerated by the current one, emerges as the long-term solution.

## Buying back, rehabilitating or building: a future plan

The Generalitat's strategy to recover its real estate assets is structured around three main pillars. The first is the **purchase of new properties**, either from private owners or other administrations. A recent example is the acquisition, in March, of half of the **Banco de España** building in Plaza Catalunya, where **700 employees** will be relocated. Minister **Romero** has indicated that they are "closely monitoring the market" and that new operations are likely to close soon.

The second avenue is the **rehabilitation of facilities already owned by the Generalitat**. Works are underway at the **Torre Muñoz**, headquarters of the Ministry of Enterprise, costing about **27 million euros**, and in a tower on Tibidabo avenue. The third option is the **direct construction of new buildings**, such as the one being erected in Pabellón Cero at Fira, in L’Hospitalet. For these three types of projects, the Catalan administration plans to invest **75.8 million euros**, aiming to amortize the investment in less than eight years.

This plan of readquisitions and new constructions will involve the relocation of **nearly 12,000 civil servants** and will extend until at least **2038**. The total investment foreseen is in the billions of euros. For the moment, the Generalitat has terminated the lease on eight premises, including the former headquarters of the Ministry of Economy in Rambla Catalunya, resulting in an annual saving of **16.2 million euros**.