· Acquisition of three properties in Zurich/Worblaufen and increase of sole ownership
· Divestment of the joint ownership in Sihlcity (24.2%) and reduction of the retail quota within the portfolio
Swiss Prime Site Immobilien and two Credit Suisse Asset Management real estate funds are completing a strategic property exchange. In return for its 24.2% joint ownership of Zurich Urban Entertainment Center Sihlcity, Swiss Prime Site Immobilien will acquire three fully let properties in Zurich and Worblaufen as of 1 October 2018. The transaction is valued at around CHF 221 million. The annual rental income from the three new properties is CHF 11.7 million, which is CHF 0.8 million higher than the company's share of rental income from Sihlcity.
Acquisition of three properties in Zurich/Worblaufen and increase of sole ownership
The three properties moving into Swiss Prime Site Immobilien's portfolio are characterised by excellent location quality and are fully let. They include a building at Giesshübelstrasse 15 in Zurich that was built in 1956 and extensively renovated in 2010 and boasts a rental area of around 2 800 m2. The property at Müllerstrasse 16/20 (Zurich), built in 1980 and with a rental area of 13 700 m2, will now be owned by Swiss Prime Site Immobilien. In Worblaufen, Swiss Prime Site Immobilien previously owned 49% of the building at Alte Tiefenaustrasse 6 (Swisscom headquarters). As part of the exchange, Swiss Prime Site Immobilien will become the sole owner of the property with around 19 000 m2 of floor space. The total fair value of the acquired buildings is approximately CHF 221 million.
Divestment of the joint ownership in Sihlcity (24.2%) and reduction of the retail quota within the portfolio
In exchange for the properties in Zurich and Worblaufen, Swiss Prime Site Immobilien is selling its 24.2% stake in Sihlcity in Zurich. This means that Sihlcity is 100% owned by real estate investment vehicles of Credit Suisse Asset Management. The fair value of the share being divested by Swiss Prime Site Immobilien is around CHF 198 million.
Peter Lehmann, CEO of Swiss Prime Site Immobilien, says: «We are delighted to have been able to complete this transaction with Credit Suisse Asset Management, which is significant in many respects. Through this we are increasing the share of properties where we are the sole owner and, at the same time, reducing the quota of retail within our portfolio to below 30%.»
Should you have any questions, please contact:
Mladen Tomic, Media Relations
Peter Lehmann, CEO Swiss Prime Site Immobilien
Swiss Prime Site Immobilien AG
Swiss Prime Site Immobilien AG is a group company of the listed Swiss Prime Site AG. Its current property portfolio is worth approximately CHF 11 billion. Swiss Prime Site Immobilien invests in high-quality real estate in prime locations in Switzerland that is primarily used by commercial tenants. The conversion, development and modernisation of entire large-scale sites constitutes another important pillar of this business segment.