Jahrzehntelang arbeiteten dort Tausende Mitarbeiter der Credit Suisse: Der Üetlihof steht vor dem Verkauf

For decades, thousands of Credit Suisse employees worked at the Üetlihof complex in Zurich. The site, located at the foot of the Üetliberg mountain, was once a key location for the large bank. In 2012, the Swiss bank sold the office complex to a Norwegian sovereign wealth fund for about a billion Swiss francs. The bank later returned to lease the premises.

Since then, the Credit Suisse has been the tenant. The Norwegian fund had previously tried to sell the property in 2022, with a desired price of 1.3 billion Swiss francs. The Zürich city council had also applied for a 1.2 billion Swiss franc loan to bid, which was narrowly rejected. Another bidder, a South Korean investment group, dropped out.

The Norwegian fund is now attempting another sale, with hopes of concluding the process before the end of the year. The fund has not disclosed a potential buyer or the final price. The fund's representative stated that such matters should not be commented upon as they are generally not discussed. All interests are disclosed twice a year on the fund's website.

The Üetlihof is one of the largest office complexes in Switzerland, offering space for 8,500 employees. The complex was built in the 1970s and underwent an expansion in 2012. The land measures almost 56,000 square meters, with office space totalling around 100,000 square meters. The extent of the complex's current usage is unknown.

After Credit Suisse's takeover, UBS downsized numerous positions and made office space available. The bank states that Üetlihof remains an important location for UBS, hosting many "support functions." Currently, UBS rents out around 14,600 square meters of the Üetlihof. Meanwhile, the bank is investing in renovating the offices and relocating departments from other locations, such as the Europaallee, into the Üetlihof.

The future owner will have guaranteed rental income until 2037, when the UBS lease can be extended by up to fifteen years. The property's value lies not in the existing buildings, but in its location within a residential zone. With UBS's departure, residential buildings could potentially be constructed there, potentially leading to a new residential quarter.

According to a 2022 Zürich city council commission, the potential for upzoning to 700-1,000 homes was estimated. This could create a new residential area at the foot of the Üetliberg. Several real estate experts consulted by the NZZ agree that the Üetlihof's future likely lies in residential development rather than office use. Large corporations favor central locations, while UBS tenants consider the suburban location only moderately appealing.

However, for homeownership, the suburban site offers excellent conditions: proximity to the Üetliberg and Allmend, good public transportation access, and ample room for extensive redevelopment. Converting the site to residential use would minimally disrupt existing tenants, as they would not need to vacate their homes. Political resistance is expected to be lower compared to other urban development projects in Zürich.

Either the city or the canton, or both, could serve as suitable owners for residential redevelopment. The limitations for foreign investors could even be further tightened. The Federal Council proposed in April a tightening of Lex Koller, which allows foreign investors to purchase office and business properties. Foreign-owned or foreign-controlled investment entities are generally prohibited from acquiring residential properties.

Those wishing to convert the Üetlihof to residential use would need a Swiss-controlled ownership structure, or risk selling the property before transformation. Foreign investor restrictions might become stricter. The Federal Council has not yet decided on the proposed amendments. Swiss investors are limited, with a minimum investment portfolio of ten billion Swiss francs required for a feasible development, considering risk diversification.

In addition to purchasing the property, developers must allocate significant resources to the redevelopment process.