Zurich: ABB has sold 2.5 hectares to the city
The official completion of the transaction, which was initiated several years ago, will result in a book profit of CHF 120 million for the industrial company.
The industrial group ABB has sold a plot of land measuring around 25,500 square meters not far from Oerlikon railroad station to the city of Zurich. The transaction was reportedly completed on March 27. The land sale includes construction site D6 and parts of construction site D7 near ABB's global headquarters and was agreed in an urban development contract between the two parties in 2021. The city intends to build affordable apartments and establish commercial and socio-cultural uses on the site.
ABB will record an operating gain on disposal of around CHF 120 million before tax in the first quarter and will receive net cash of around CHF 90 million. These amounts include the effect of the value-added compensation of almost CHF 17 million from the development plan amendment and compensation of around CHF 22 million for the zonal relocation of affordable housing, which ABB was obliged to pay under the contract.
Under the terms of the agreement, the former ABB production facility and the current event location "Halle 550" at Birchstrasse 150 will be retained for cultural uses. ABB's corporate headquarters in Zurich-Oerlikon in Cityport and the ABB Historic Building at MFO Park remain unaffected by the sale. (aw)
