Uetlihof Zurich office complex sale by Norwegian sovereign wealth fund, Digi Mart USA News (Zurich, Switzerland): Three years ago, the city of Zurich wanted to buy the honeycomb-shaped Uetlihof development for 1.2 billion Swiss francs. The deal collapsed after the municipal council rejected the loan.
The owner of the roughly 95,000-square-meter property is now making a new attempt. According to the Swiss newspaper NZZ, the Norwegian sovereign wealth fund is seeking to close a sale before the end of the year.
The office complex, built between 1976 and 1979, once belonged to Credit Suisse and provided space for about 8,500 employees. It also included a staff restaurant, a fitness center and its own energy supply.
In 2012, Credit Suisse sold the complex to the Norwegian sovereign wealth fund for 1 billion francs.
Since Credit Suisse’s collapse, UBS has been the tenant, paying about 45 million francs per year. Even if the building finds a new buyer soon, the UBS lease runs until at least 2037.
UBS can then extend the tenancy by up to 15 years.
The property lies in a residential zone, which may appeal to potential investors. Housing could be built without the city first having to rezone the area.
According to NZZ, between 700 and 1,000 apartments could be created on the site, forming an entire neighborhood.
