Zurich: Swiss Prime Site acquires Swisscom property
The 21,000 sqm "Fifty one" office building is located next to the "Maaglive" project site and is to form a campus with it. The purchase will be offset by numerous sales in 2023.
Swiss Prime Site has acquired the "Fifty-One" office property at Pfingstweidstrasse 51 in Zurich-West. The building is located in the immediate vicinity of the Prime Tower and the ongoing Maaglive real estate development project. The building, which was constructed in 2011, is certified with the LEED Gold label. Swiss Prime Site is acquiring the property from the German fund house Union Investment with a long-term lease agreement with Swisscom. The rentable area is around 21,000 square meters, offers workspace for around 1,500 employees and generates a rent of around CHF 7 million per year. The transfer of ownership will take place on December 1, 2023 and, based on financing concluded in 2023, the acquisition will increase annual FFO per share by around 3 centimes, SPS writes in a press release. SPS has not disclosed the purchase price of the property, which was most recently valued at EUR 159.7 million in the books of Union Investment's "Uniimmo Europa" fund.
"The Fifty-One fits perfectly into our portfolio near the Maagareal with the Prime Tower as a Zurich landmark," comments Urs Baumann, Chief Investment Officer of SPS. "Together with the Maaglive development project, we will create a unique campus here with a mix of sustainable living and working spaces as well as attractive green and recreational areas."
16 properties sold in 2023
SPS places the transaction in the context of its "Capital Recycling" program. In 2023, 16 properties had already been sold for a total of CHF 280 million. This was achieved with average proceeds of 7% above the last appraised value. The largest sales were in Olten and Berlingen with Tertianum as the tenant; the buyers were large institutional investors, according to the report. In addition, these were mainly retail properties and smaller properties outside the major economic centers, in so-called B and C locations. "Swiss Prime Site is thus further consolidating its real estate holdings and focusing its portfolio even more on prime locations in Switzerland's most important business centers," the statement continues. (aw)
