Union Investment has sold a prime office building in Zurich to listed real estate company Swiss Prime Site for an undisclosed sum.
Fifty-One is located in Zurich West, a former industrial zone transformed into a modern residential and office area and close to the Prime Tower and the Maaglive development.
The property was acquired by Union Investment for its open-ended real estate fund Unilmmo: Europa in 2009 as a development project. It offers 21,000 m2 of rental space with 88 parking spaces.
The asset is fully let to Swisscom Immobilien on a long-term rental agreement, generating CHF 7 mln (€7.3 mln) in rental income per year.
Alejandro Obermeyer, head of investment management DACH at Union Investment, said: ‘The high construction quality and good location of Fifty-One and the tenant’s creditworthiness generated a lot of interest even in the current market environment, despite properties worth over €100 mln being considered difficult to market at the moment. To further boost the resilience of our high-quality existing portfolio, we are increasingly focusing on smaller lot sizes and continuing to diversify our portfolio structure, in particular by increasing our exposure to resilient logistics and European residential properties.’
Urs Baumann, CIO at Swiss Prime Site, added: ‘Fifty-One fits perfectly into our portfolio around the Maag site, with the Prime Tower as one of Zurich’s iconic symbols. It further enhances our portfolio in terms of location and building standards and, following successful sales in 2023, we are completing the acquisition with a strong capital base. Along with the Maaglive development project, we are creating a unique campus here with a blend of sustainable living and working spaces, and attractive green and recreational zones.’
The property meets the highest sustainability standards and has LEED Gold certification.
The transaction is part of Swiss Prime Site’s capital recycling, with disposals of CHF 280 mln (€294 mln) in 2023 and further sales planned for 2024. The company has allocated the newly acquired building to the Green Building portfolio within the scope of the Green Finance Framework for sustainability.
JLL assisted with the sale, while law firm Lenz & Staehelin and tax consultancy KPMG advised Union Investment.