SPS invests in large-scale project in Zurich

Swiss Prime Site (SPS) is acquiring the SkyKey commercial real estate project in Zurich-North, Switzerland from local developer Karl Steiner. The 63-metre-high building is being constructed according to the LEED standard and will be ready for occupancy in the summer of 2014. The sole tenant is Zurich Insurance Company.

The project constitutes part of a real estate triad, together with the already completed Business Centre Andreaspark - home of the future headquarters of Karl Steiner, as well as Andreaspark3 under construction. 'We are pleased that we were able to find an investor for SkyKey with which we have already collaborated together successfully and trustfully in many other development projects,' said Karl Steiner's CEO, Henri Muhr.

For SPS's Chief Investment Officer, Peter Lehmann, the total cost of investment of roughly CHF 230 mln (EUR 178.5 mln) is 'a clever, far-sighted and particularly sustainable investment that is perfectly in line with the company's high-quality portfolio'. 'Just like Prime Tower, the SkyKey building is being constructed in accordance with the criteria for Leed certification, which will also have a positive impact on the rent income potential and long-term performance,' added Lehmann.

The building developed by Karl Steiner is situated on a 9,500-m² plot of land comprising rental floor space of 40,000 m² allocated over 18 floors and two subterranean levels offering 230 parking places. Construction work is expected to start in the summer of 2011.