Swiss Prime Site: Building permits for Jelmoli building and "Yond Campus"
The company reports progress on two Zurich projects and plans to sell for up to CHF 300 million by the end of the year.
As part of its development projects, Swiss Prime Site has received legally binding building permits for the repositioning of the Jelmoli building on Zurich's Bahnhofstrasse and a new construction project in Zurich-Albisrieden.
SPS plans to reduce the retail space in the Jelmoli building in favor of other uses, in particular new office space. The demolition and renovation work can now begin immediately after the department store closes in March 2025. The conversion work includes the reactivation of the original atriums and a new energy concept and should be completed by the end of 2027. The building complex will then cover 33,000 square meters over six floors and will be characterized in particular by large, bright, contiguous spaces. In summer 2024, a long-term retail lease was signed with Manor for three floors and an area of around 13,000 sqm. Together with other rental agreements, around 50% of the space has already been let, according to SPS.
Building permit for 35,000 square meters in Zurich-Albisrieden
SPS also announces the legally binding building permit for the "Yond Campus" project in Zurich-Albisrieden. Following on from the first stage of the project, two new buildings with similar usage concepts and a total of around 35,000 square meters of rental space are being built on the former industrial site. The space is designed for companies from the service and manufacturing sectors. SPS expects a pre-letting level of around 50% at the start of construction in 2025.
High sales volume above book value expected
As part of "capital recycling", the projects are to be financed through the sale of properties that are less in line with the strategy. SPS expects sales proceeds of CHF 275 to 300 million by the end of the year and a gain on sale of 3 to 5% above the last estimate. (aw)
