WPP, the world’s leading advertising and marketing services group, is to create a new home for its operating companies in Madrid.
The group has agreed a long-term lease, beginning in the summer of 2018, for the former Telefónica headquarters on Calle de Ríos Rosas in the Chamberí neighbourhood of central Madrid.
The lease is with global real estate fund manager, M&G Real Estate, who recently acquired the asset as part of its European property strategy.
The new office will bring together more than 40 companies and some 2,500 people under one roof. WPP’s agencies in Madrid are currently distributed across 11 different locations.
The 36,000m² building will be stripped back to its shell and fully refurbished – including new facades and cores. The lead architect on the project is BDG architecture + design, a WPP company.
The deal is the second largest office leasing in Spain in the last 15 years, after Vodafone in 2013. It follows WPP’s announcement in July this year that it has signed a landmark lease for a new building in Shanghai to co-locate 26 companies and 3,000 people.
Sir Martin Sorrell, CEO of WPP, said:
“This investment is a vote of confidence in our businesses in Spain, which is one of our most important markets. Like our recently announced Shanghai Campus, it will provide a superb environment for our people and encourage greater collaboration – or horizontality – between our operating companies for the benefit of clients.”
In Spain, WPP companies (including associates) have revenues of more than US$400 million and employ around 3,000 people.