Union Investment has sold the West-Park office building in Zurich, on behalf of the UniImmo: Global fund, to Swiss real estate company PSP Real Estate
The sales price was CHF 216.5 mln (€222.8 mln), double the original purchase price, partly thanks to the strong Swiss franc against the euro.
Dating back to 2002, the 7-storey property at Pfingstweidstraße 60 has been in the fund’s portfolio since 2009, offering around 27,100 m2 of rental space (97% let) and 130 parking spaces.
The building generates an attractive net yield of 4% and has both rental and development potential in the medium to longer term, while the tenant mix is broadly diversified with various tenants with strong credit ratings.
The West-Park is certified ‘BREEAM – excellent’ as a building and ‘BREEAM – very good’ in operation, while on the Wüest Partner’s ESG rating it achieves an excellent score of 3.9.
Alejandro Obermeyer, head of investment management DACH at Union Investment, said: ‘The sale is one of the largest office property transactions in continental Europe so far this year. It shows that the transaction market is picking up and it’s gradually becoming possible for premium properties to change hands again on appropriate terms. We see this as extremely positive for our acquisition targets and also for future planned sales from our high-quality existing portfolio.’
The building is located in the Zurich West district, a former industrial site transformed into a modern residential and office location.
The Technopark with its many IT, communications and research companies is located close by, as are the International Art Fair venue and high-quality residential areas.
Jones Lang Lasalle brokered the sale, while Lenz & Staehelin advised Union Investment on legal aspects.