Union Investment has sold the West-Park office building in Zurich to PSP Real Estate AG, a subsidiary of PSP Swiss Property AG, on behalf of open-ended real estate fund UniImmo: Global. Completed in 2002, the building at Pfingstweidstraße 60 has been part of the fund’s portfolio since 2009. The office property was sold for around double the original purchase price, partly thanks to the strong performance of the Swiss franc against the euro. The sale price of 216.5 million Swiss francs (EUR 222.8 million) corresponds to the most recent expert valuation.
“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,” said Alejandro Obermeyer, head of Investment Management DACH at Union Investment.
The multi-tenant office building is located in the Zurich West submarket, a former industrial zone that has been transformed into an attractive, modern residential and office location in recent years. With its distinctive contemporary architecture, West-Park is a highly visible property. The building offers around 27,100 sq m of rental space and 130 parking spaces. It has a BREEAM sustainability rating of “Excellent” and is currently 97% let.
Real estate services provider Jones Lang Lasalle brokered the sale. Union Investment was advised on legal aspects by law firm Lenz & Staehelin.
