Zurich: Oldest property on Bahnhofstrasse sold
The historic property in Zurich's best shopping location was put on the market for the first time since it was built. There are many rumors about the purchase price achieved.
The sale of a property on Bahnhofstrasse in Zurich has been the subject of much discussion on the market in recent weeks. The fact that a major deal had been concluded shortly before the end of 2024 at an initial yield of less than 2% has been making the rounds among real estate experts. However, reliable information on the deal is rare. And whether the transaction is suitable as a benchmark deal is another question that arises. According to information from "Immobilien Business", the property in question is Bahnhofstrasse 40. As can be seen from a brief exposé of the building, JLL was commissioned with the marketing. However, the real estate agency will not comment on the transaction when asked.
The building with the retail tenants Ferragamo and Chopard has a rental area of 1,979 square meters, including the offices. Prada rents space next door and Chanel sells its exclusive fashion on the other side of the street. The property with four full floors was last refurbished in 2014, and there is currently no need for capex. With a contractual rent of CHF 3.44 million and an assumed initial yield of e.g. 1.9%, the purchase price would be around CHF 181 million.
However, it should be borne in mind that the new owners were promised rental growth potential when the property was sold. An expansion of the retail space could lead to an increase in rental income to CHF 4.82 million, as stated in the brief exposé. This would correspond to an initial yield of just under 2.7% based on the purchase price determined in the calculation example above - without taking any investments into account.
The new owner is familiar with luxury locations
Trophy properties in the luxury sections of Bahnhofstrasse are generally not suitable as a point of reference for valuations in Zurich - even without such rent increase options. Wealthy families in particular think in generational terms when buying such properties - once they come on the market. The new owners of Bahnhofstrasse 40, Marconi Investment SA, a subsidiary of luxury watch manufacturer Rolex, also have a very long-term investment horizon and have already acquired many a property.
According to reports, the sales process for Bahnhofstrasse 40 began in mid-2024. The fact that the property came onto the market was remarkable in itself, as there had never been a change of ownership for this historic property built in 1868. The "Haus zum Nordlicht" is also the oldest property on Bahnhofstrasse. It was home to the very first store on the avenue - a photography business. (aw)
