Pérez-Llorca advises Fundación Montemadrid on Palacio de la Música sale

Pérez-Llorca has advised Fundación Montemadrid on the sale of the Palacio de la Música, a historic building located on Madrid’s Gran Vía, to Swiss-based investment firm Zephyros Group. The transaction aims to restore the building as a vibrant cultural venue while reinforcing the foundation’s social and cultural mission.

Originally designed by Secundino Zuazo and inaugurated in 1926, the Palacio de la Música holds significant architectural and symbolic value for the city. The building is highly protected and widely recognized as a cultural heritage site.

The sale concludes a strategic process launched by Fundación Montemadrid in December 2022, with Savills acting as external advisor. The foundation conducted a comprehensive market analysis and maintained continuous dialogue with both local and regional public authorities to ensure the preservation of the building’s cultural function.

The transaction will enable Fundación Montemadrid to strengthen its social impact, particularly through its flagship community centres — La Casa Encendida in Lavapiés and Casa San Cristóbal in the San Cristóbal de los Ángeles neighbourhood — as well as to support third-sector organisations and enhance its innovative educational initiatives.

Zephyros Group, which specializes in revitalizing heritage properties, will spearhead the building’s cultural renewal. A rehabilitation project developed by architectural studio RCCyP, which has already secured the required permits, will transform the venue into a 21st-century cultural space, maintaining its historical identity while ensuring full compliance with modern standards of accessibility and safety.

Over the next three years, Zephyros will undertake an extensive renovation plan, working closely with RCCyP to create a versatile and innovative cultural space for concerts, theatre performances, exhibitions, and conferences. A cultural advisory board will soon be established to define the programming strategy, while a dedicated technical team will oversee the project’s implementation.

Though the financial terms of the deal have not been disclosed, the operation underscores a broader trend of reinvesting in cultural infrastructure across Europe.

Advisory Team

Pérez-Llorca’s multidisciplinary legal team on the transaction included José Ángel Nabal, Partner – Corporate Real Estate (pictured left), Eva del Amo, Senior Associate – Corporate Real Estate, Diego Narbona, Associate – Corporate Real Estate, Eduardo Castilla, Associate – Corporate Real Estate, Ana Cremades, Partner – Regulatory (pictured right), Borja Martínez, Associate – Regulatory, Viktoriya Petkova, Senior Associate – Tax, as well as María Gutiérrez, Associate – Tax.