Barcelona City Council will receive €5.11 million from Torcalena Servicios y Gestiones, a company owned by billionaire Daniel Maté, to fund the complete renovation of the historic Capitol Theatre on La Rambla. This significant payment forms part of a broader agreement. It will see the theatre transferred to municipal ownership and reopen its doors by autumn 2027.
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The agreement involves the reclassification of the old Telefónica building at Plaça Catalunya, also owned by Torcalena. This urban planning change permits the building to host offices and shops, substantially increasing its market value. As compensation for this reclassification, Torcalena will make total payments and land transfers to the council. These are valued at €19.93 million. The €5.11 million specifically allocated for the Capitol Theatre renovation aims to cover the entire cost of its refurbishment.
The revitalised theatre will serve as a key cultural hub in Ciutat Vella, offering a programme of sociocultural activities. Additionally, the upper floors will house offices for the Barcelona Libraries Consortium. A local executive stated, “It is expected that the council will receive the total economic concepts it is entitled to from the Capitol Theatre property and the cost of its rehabilitation works.”
Funding and Theatre Transfer Details
The comprehensive agreement stipulates that Torcalena will transfer the theatre to the council free of charge. This transfer, along with the financial contributions, is contingent upon the final approval of the reparcelling project. The council anticipates this final approval before summer. The theatre’s official transfer to municipal hands is expected during the second half of 2026. Officials are also exploring options with the property owner to commence rehabilitation works earlier, even before the formal change of ownership.
The Capitol Theatre, which closed five years ago, will retain its characteristic sign and an entrance on La Rambla. However, the main public access will shift to Carrer Santa Anna following the renovation. Before this agreement, Torcalena had submitted a request to reform the Santa Anna entrance and install shops. The current pact mandates the withdrawal of this commercial application once the reclassifications become effective.
Reclassification of Telefónica Building
The core of the deal centres on the former Telefónica headquarters, an emblematic building erected in 1928 at the corner of Plaça Catalunya. Currently, its nine floors remain largely unused, with only the ground floor active, and it is classified for services. The reclassification will authorise 1,419 square metres for retail shops and 3,474 square metres for office space within the building. This change is projected to revalue the property significantly, increasing its estimated worth from €12.4 million to €49.94 million, a revaluation of €37.54 million.
The project’s memorandum estimates a net private benefit of €5.26 million for Torcalena from this operation. This figure closely matches the amount the company will pay to the council. One specific payment of €3.75 million represents the mandatory 10% share of the increased value of the former telephone exchange. Additionally, Torcalena has committed to paying €1.35 million to the council for public domain land. This includes transferring 577 square metres with the Capitol Theatre. The company will financially compensate for another 294.68 square metres. No further land is available for donation in Ciutat Vella. The company will also transfer 135.50 square metres of subsoil beneath the building at Plaça Catalunya and Portal de l’Àngel to the council.
Political Reactions and Future Outlook
The agreement has faced criticism from some political factions. Barcelona en Comú described the proposal as an “urbanistic windfall.” They characterised it as a “gift of nine luxury commercial and recreational floors” to a private entity. This was in exchange for the “minimum legal” public return. They suggested that the Telefónica building could have instead accommodated 13 protected homes. Esquerra Republicana de Catalunya (ERC) argued that the council should demand a greater share of the capital gains generated for the property owner. ERC’s calculations suggest Torcalena’s profit could be closer to €10 million. They dispute the council’s commissioned study. That study estimated office rental prices around Plaça Catalunya at €23.17 per square metre.
Despite these reservations, the deal secured initial approval after the council, led by Mayor Jaume Collboni, reached an agreement with Junts. This pact included a commitment to expand spaces for popular culture in Ciutat Vella. The Popular Party (PP) also supported the initiative. They highlighted the acquisition of a cultural facility without public expenditure. They also noted the economic revitalisation of the city centre. The council maintains that the reclassification could lead to increased property tax revenue for the city, although it has not yet quantified this potential gain.
The council defends the project, stating that the former Telefónica headquarters had become obsolete for telecommunications infrastructure. They believe its transformation contributes to recovering emblematic spaces in central Barcelona. The plan allows a four-year margin for the refurbishment and reopening of the former Telefónica building. This will occur once the project officially comes into force. This is expected in the coming months. The council anticipates the Capitol Theatre will reopen as a vibrant cultural centre, enhancing Barcelona’s cultural offering for residents and visitors alike.
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Originally published by El Periódico Barcelona. Read original article.
