The Zurich city council wants to buy the Uetlihof, the largest office complex in Switzerland. The building is currently owned by the Norwegian sovereign wealth fund. Credit Suisse currently employs around 8,500 people at this location below the Uetliberg.
At the beginning of February it became known that the Norwegian sovereign wealth fund wants to sell the huge office complex. Ten years earlier, Credit Suisse had sold the entire campus to Norway and has been a tenant ever since. It pays an amount in the mid double-digit millions every year.
The city of Zurich now wants to become the new owner of the Uetlihof: the city council announced on Thursday that it would take part in the confidential sales process. In order to be able to bid, the city council is now urgently applying to Parliament for a supplementary loan of a whopping CHF 1.2 billion.
The city council emphasized that this amount does not correspond to the intended purchase offer, but to the current building insurance value of the property. If necessary, the city government wants to decide on further money as an urgent supplementary loan.
Parliament should then approve the amount afterwards. With this unusual approach, the city could submit an offer without being disadvantaged compared to its competitors.
Credit Suisse should stay in town
If the sale to the city goes through, Credit Suisse doesn’t have to move out, on the contrary. With the purchase, the city is also concerned that Credit Suisse will remain in Zurich – and not outsource the jobs to cheaper locations.
“The financial center is an important backbone of the city of Zurich’s economy, Credit Suisse is traditionally an important employer in our city,” Mayor Corine Mauch (SP, 61) is quoted as saying. “It is in the interest of the city that the location is preserved in the long term.”
The Credit Suisse lease runs until 2037 and can be extended by up to 15 years. The city council is convinced that the city would still benefit from the Uetlihof if Credit Suisse did relocate its jobs one day.
Building plot for future generations
The 55,000 square meter office complex is located in a residential zone where five floors are possible. It is the second largest contiguous residential lot in the city. After the lease expires, the office buildings could continue to be used as offices, or converted into apartments or educational institutions.
“The Uetlihof is an important building land reserve for the next generation or the one after that,” CFO Daniel Leupi (Greens, 56) is quoted as saying. Therefore, the interest in buying this plot is great. According to the city council, it should also be prevented that the property is sold to an investor from abroad. (SDA/sfa)