Credit Suisse sells Zurich office to Norway fund for $1 billion
Credit Suisse Group sold an office complex in Zurich to Norway's $660 billion sovereign-wealth fund for $1.08 billion as the Swiss lender tries to boost its capital.
Norges Bank Investment Management acted as the buyer on behalf of the Norway Government Pension Fund Global, the Zurich- based bank said in a statement Thursday. The Uetlihof office complex is about 1.9 miles southwest of Zurich's center, according to Credit Suisse.
"The transaction marks the fund's first property investment in Switzerland," Karsten Kallevig, chief investment officer for real estate at the Norwegian fund, said in a separate statement.
Credit Suisse, the second-largest Swiss lender after UBS, is selling the building to strengthen its capital position amid stricter regulation. It plans to cut $1.08 billion in annual costs by the end of 2014, adding to a $1.08 billion-savings program from July and a $2.16 billion-expense reduction achieved since last year.
The Swiss bank will lease the property, which has 1.87 million square feet of rentable space, for 25 years starting Thursday. It can extend its lease by as many as 15 years, according to the statement.