Zurich: Credit Suisse takes over Sihlcity completely
Credit Suisse Asset Management and Swiss Prime Site Immobilien have agreed on a property swap. CS will acquire the remaining shares in Sihlcity in Zurich for two of its real estate funds.
Two real estate funds of Credit Suisse Asset Management - CS 1a Immo PK and CS REF Interswiss - will acquire the remaining shares of Sihlcity with immediate effect, Swiss Prime Site (SPS) and Credit Suisse announced on October 2. This corresponds to just under a quarter (24.2%) of the property. As a result, five Credit Suisse real estate investment vehicles are now co-owners of the Urban Entertainment Center in Zurich-Wiedikon. SPS puts the fair value of the stake at around 198 million.
In return, SPS receives the Zurich properties Giesshübelstrasse 15 with 2,800 sqm and Müllerstrasse 16/20 with 13,700 sqm of space. In addition, SPS is taking over 51 percent of the property Alte Tiefenaustrasse 6 in Worblaufen with 19,000 sqm of usable space from the two funds. SPS already owns 49 percent of the property in Worblaufen, where Swisscom has its headquarters. The three properties are fully leased, and annual rental income amounts to CHF 11.7 million, according to SPS. It is thus 0.8 million higher than that of the share in Sihlcity. The fair value of the acquired buildings is reportedly around CHF 221 million in total.
As Peter Lehmann, CEO of Swiss Prime Site Immobilien, says, the real estate company is reducing the retail ratio in its portfolio to less than 30 percent as a result of the transaction. In addition, the proportion of properties in sole ownership will increase.
With the transaction, Sihlcity is now fully owned by Credit Suisse real estate investment vehicles. By reducing the number of co-owners, the management of the real estate investment products has more freedom of action, the bank says. The intention is to drive forward the development of the multifunctional building complex in order to promote its character as a small district in its own right in Zurich and to increase its value as an attractive investment in various real estate funds, it adds. Sihlcity comprises uses such as residential, hotel, cinema, leisure, gastronomy as well as office and retail space. (ah)
