First property investment in Switzerland
The Norwegian Government Pension Fund Global today bought the Uetlihof office complex in Zurich for 1 billion Swiss francs, or about 6.1 billion kroner, from the Swiss bank Credit Suisse.
Credit Suisse will lease the property for 25 years starting today and has the option to extend the lease by as many as 15 years. Uetlihof, located about 3 kilometres southwest of Zurich's city centre, is Credit Suisse's main office building worldwide.
"The transaction marks the fund's first property investment in Switzerland," says Karsten Kallevig, chief investment officer for real estate at Norges Bank Investment Management (NBIM), manager of the fund. "Since entering the real estate market in 2011, the fund has also invested in property in the UK, France and Germany."
Credit Suisse will have operational responsibility for Uetlihof during the fixed lease period. The office complex has more than 8,000 workspaces, as well as a precious metal vault and data centre. It consists of 173,807 square metres of lettable space.
Norges Bank Investment Management (NBIM) safeguards and builds financial wealth for future generations as the manager of the Norwegian Government Pension Fund Global. The fund is invested globally in equity, fixed-income and real estate markets. It held assets worth 3,723 billion kroner at the end of September 2012.
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