Norges splashes EUR 830m in first Swiss deal

Norway's sovereign wealth fund has entered Switzerland with the purchase of the massive Uetlihof office complex in Zurich for CHF 1 bn (EUR 830 mln).

Norges Bank Investment Management (NBIM), which manages the assets of the country's oil-fuelled pension fund, acquired the asset from Swiss bank Credit Suisse, which is leasing back the asset with a 25-year rental agreement and an option to extend by a further 15 years.

Uetlihof, located about 3 kilometres southwest of Zurich's city centre, is Credit Suisse's main office building worldwide. Credit Suisse will have operational responsibility for Uetlihof during the fixed lease period. The office complex has more than 8,000 work spaces, as well as a precious metal vault and data centre. It consists of 173,807 m² of lettable space.

'The transaction marks the fund's first property investment in Switzerland,' said Karsten Kallevig, chief investment officer for real estate at NBIM. 'Since entering the real estate market in 2011, the fund has also invested in property in the UK, France and Germany.'

The Norwegian Government Pension Fund Global is invested globally in equity, fixed-income and real estate markets. It holds assets worth EUR 500 bn. Last month, the fund entered Germany with the purchase of two buildings for EUR 784 mln from the Royal Bank of Scotland.

The acquisition was carried out in a joint venture with AXA Real Estate Investment Managers.