City of Zurich buys "Airgate" for CHF 128 million
The "Airgate" office building at Thurgauerstrasse 40 in Zurich-Seebach has been acquired by the city for a purchase price of CHF 128 million. It is intended for later use as an administrative center, according to the Department of Buildings. The city council approved the purchase by emergency resolution.
"Due to its location (...), its size and its flexible usability, it is ideal for the needs of the city administration" Councillor André Odermatt, Head of the Department of Structural Engineering of the City of Zurich
Following the recent acquisition of the commercial building at Eggbühlstrasse 21-25, the City Council has now acquired another commercial building, according to the City of Zurich's Department of Buildings. The "Airgate", which was built in Zurich North in 1980 and is currently still largely let (until 2025), has a usable floor space of around 22,000 square meters on twelve above-ground floors. It is ideally suited to the needs of the city administration "because of its location directly next to a streetcar stop and within walking distance of Oerlikon station, its size and its flexible usability," explains Councillor André Odermatt, who is also head of the City of Zurich's Department of Buildings.
City prevailed over other interested parties
The purchase price is within the range of two estimates, the statement continues. The city had been "in competition with other interested parties". Since the purchase could not be postponed, the transaction was the responsibility of the city council and the audit committee of the municipal council was also informed in advance. The seller is a "private person residing abroad". According to the Tages-Anzeiger (print edition), the seller is Australian Greg Shand and his London-based company Barana Ltd., which is said to have acquired the property from Publica, the federal pension fund, for CHF 95 million in 2007.
The "Airgate" serves to cover the medium-term space requirements of the Zurich city administration, Odermatt added. The conversion of the property as an administrative center requires several years of planning and the approval of the municipality. Until then, the property will remain in the financial assets - in line with its main use by third parties. Based on the existing rental income of around CHF 6.7 million per year, it can be managed to cover costs, Odermatt says. Currently vacant space would either be occupied by the city or rented out to third parties until the property management company converts it into an administrative center.
No new administrative building in Altstetten
The recent purchase of the "Airgate" office building on Thurgauerstrasse replaces the planned new construction of the administration center on Aargauerstrasse. This planning will now not be pursued further. "The site in Zurich-Altstetten continues to be available as a strategic land reserve," writes the Department of Buildings. (mr)
