Swiss Prime Site: Enforceable building permits for Jelmoli building and «YOND Campus» and further portfolio streamlining through property sales

PRESS RELEASE

Zug, 28 November 2024

• Enforceable building permit for the conversion of the Jelmoli building obtained
• Enforceable building permit for the «YOND Campus» project in Zurich-Albisrieden obtained
• Ongoing portfolio streamlining with sales of CHF 275 to 300 million expected by the end of the year

Swiss Prime Site has obtained enforceable building permits for its development projects to reposition the Jelmoli building next to Zurich's Bahnhofstrasse and for the new «YOND Campus» project in Zurich-Albisrieden. The aim for the iconic Jelmoli building is to adapt the retail space to current market needs and to redesign the building complex for the future with new, public-oriented uses. Building and renovation work can thus begin immediately after the closure of the Jelmoli department store from March 2025. After extensive conversion work, including the reactivation of the original atriums and the implementation of a sustainable energy concept, the building is to be put to new use from the end of 2027. The building complex, with its 33,000 m² over six floors, is characterised by its large, light-flooded contiguous areas. These are ideally suited for modern office and retail space and are in particularly high demand in Zurich's city centre. A long-term lease agreement for three floors and around 13,000 m² of space was signed with the established department store group Manor already in the summer 2024, following the repositioning. Together with other leases, around 50% of the space has already been let; negotiations are currently underway for further letting areas.

In addition, Swiss Prime Site has also received the enforceable building permit for the «YOND Campus» project in Zurich-Albisrieden. Following on from the success of the innovative first phase of the «YOND» project, two new buildings with similar usage concepts and a total of around 35,000 m² of rental space are being built on the former industrial site. In particular, companies from the service and manufacturing sectors will be located here, close to the city centre. Swiss Prime Site is in advanced talks with various prospective tenants and expects a pre-letting rate of around 50% by the start of construction in 2025.

Urs Baumann, CIO of Swiss Prime Site, says: «The receipt of the enforceable building permits for the Jelmoli building and the YOND Campus is an excellent testament to our development expertise and means that we can carry out two very prominent projects according to plan. Both have a high value for the city of Zurich – the Jelmoli building, in a prime city centre location, is of utmost importance for the local population and the YOND Campus, as one of the largest commercial clusters in Zurich, makes an equally important contribution to sustainable urban and neighbourhood development.»

Swiss Prime Site continues to focus its portfolio on modern, centrally located and larger properties – in doing so, it sells properties that do not optimally fit into the strategy due to their location or use, which in turn finances development projects such as Jelmoli or «YOND Campus» (so-called ‘capital recycling’). On the basis of advanced negotiations and binding purchase offers, Swiss Prime Site expects to complete sales with proceeds of CHF 275 to 300 million by the end of the year and a profit of 3-5% above the latest appraisal value.

If you have any questions, please contact:
 
Investor Relations, Florian Hauber
Tel. +41 58 317 17 64, florian.hauber@sps.swiss
 
Media Relations, Patrick Djizmedjian
Tel. +41 58 317 17 42, patrick.djizmedjian@sps.swiss