Swiss Prime Site acquires modern office building next to Prime Tower site
December 01, 2023 at 01:02 am EST
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Swiss Prime Site AG
/ Key word(s): Real Estate
Swiss Prime Site acquires modern office building next to Prime Tower site
01.12.2023 / 07:00 CET/CEST
PRESS RELEASE
Zug, 1 December 2023
LEED Gold-certified building «Fifty-One» to be acquired with Swisscom as long-term tenant
Property makes perfect addition to portfolio and expands presence in thriving Zurich-West district
Transaction made as part of capital recycling, with dispoals of CHF 280 million in 2023 and further sales planned for 2024
LEED Gold-certified building «Fifty-One» to be acquired with Swisscom as a long-term tenant
Swiss Prime Site is acquiring a very modern office building – known as «Fifty-One» – in Zurich-West, close to the Zurich Prime Tower and the ongoing Maaglive real estate development project. Constructed in 2011, the building meets the highest sustainability standards and is LEED Gold certified. Swiss Prime Site is acquiring the building from Union Investment along with a long-term rental agreement with Swisscom. With letting space of around 21,000 m2, the building can accommodate about 1,500 employees and generates around CHF 7 million in rental income per year. Ownership will be transferred on 1 December 2023. Based on financing concluded in 2023, this acquisition increases the annual FFO per share by about CHF 0.03.
Urs Baumann, Chief Investment Officer at Swiss Prime Site: «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.»
Strong emphasis on capital recycling with disposals of CHF 280 million in 2023
As part of its ongoing efforts to optimise its portfolio, Swiss Prime Site sold 16 properties worth a total of CHF 280 million in 2023, realising proceeds of 7% above the last appraisal values on average. The largest of these properties, occupied by Tertianum, were located in Olten and Berlingen and were both sold to large institutional investors. Otherwise, the disposals were largely comprised of retail properties as well as smaller properties outside the major economic centres, i.e. properties in B and C locations. This consolidation of its property portfolio allows Swiss Prime Site to focus even more closely on prime locations in Switzerland’s key business centres.
Swiss Prime Site allocates the newly acquired building to the «Green Building» portfolio within the scope of the Green Finance Framework for sustainability.
Swiss Prime Site AG is a Switzerland-based real estate investment company. The Companyâs activities are structured into three segments: Real Estate, Retail and Gastronomy, and Assisted Living. The Real Estate segment focuses primarily on properties with office and retail floor space situated in prime locations. In addition, through its subsidiary Wincasa AG, the Company is involved in the provision of real estate services. The Retail and Gastronomy segment consists of primarily Jelmoli - The House of Brands department store and Clouds Restaurant in Prime Tower, Zurich. The Assisted Living segment comprises senior residences and geriatric care facilities provided by the subsidiary Tertianum Group.
SWISS PRIME SITE AG 
