Zurich: SPA acquires the "Leuenhof

The SPA acquires the "Leuenhof" for the investment group "SPA Real Estate Switzerland". The building served as the headquarters for Bank Leu since 1915, whose successor institution was integrated into Credit Suisse in 2012. Space on the first floor is leased to luxury boutiques and Café Leone under multi-year leases. SPA is taking over all leases. According to a report by the financial portal finews.ch CS intends to remain a tenant in the offices for at least two years for the time being.

With the acquisition of the fully leased commercial property, the investment group will report total assets under management of around CHF 1 billion before the end of its first financial year, SPA says.

A capital increase is to be carried out to finance the acquisition; SPA intends to communicate the timing and further details in the coming weeks. Investors from the initial offering in September 2015 will be prioritized, while part of the issue volume will be earmarked for subscriptions from new investors.

With this opportunistic acquisition, the proportion of commercially used properties in the portfolio of the investment group will increase in the short term, SPA further states. For the further expansion of the portfolio, however, the strategic target allocation of 60 percent residential is maintained.

The "Leuenhof" is one of the most beautiful Art Nouveau buildings in Zurich. Like the buildings for the Enge train station, the Swiss National Bank and for the Zurich cantonal administration, it was designed by the Zurich private architects Otto and Werner Pfister.

At the end of June, the Handelszeitung reported that Credit Suisse is looking into selling the property, because customers would increasingly be received at the neighboring headquarters on Paradeplatz. No details were given on the sale price, but industry experts assume a figure in the hundreds of millions for a property in such an exclusive location. (ah)