|
According to Sulzer’s strategy on real estate development, non essential properties are divested to raise capital for the growth of core businesses. A substantial part of Sulzer’s corporate real estate divestiture plan is concluded with this sale to Allreal, comprising the triangular site between Schützenstrasse, Neuwiesenstrasse and Zürcherstrasse in Winterthur (site area 18 400 m2, net rental floor area 21 000 m2) and the former Escher-Wyss site in Zurich (site area 60 000 m2, net rental floor area 52 000 m2).
Allreal is taking over all existing rental contracts without restrictions. Part of the sales price, which the parties have agreed not to disclose, will be paid in the form of 160 000 Allreal Holding shares at CHF 87.50 each. This block of shares, worth CHF 14 million in total, will be transferred from Allreal treasury stock. Sulzer thus will hold a 2.5-percent participation in Allreal.
Since the divestiture of Sulzer Hydro and Sulzer Turbo, the primary tenant at Sulzer’s former Escher-Wyss site in Zurich has been MAN Turbo. In Winterthur, Sulzer currently occupies less than 40 percent of the rental floor area now sold. The average term of the rental contracts taken over by Allreal is five years.
In spring 2001 Sulzer announced as a first milestone to divest corporate real estate for a gross amount of about CHF 200 million within 2001 and 2002. With these site sales to Allreal and former real estate divestitures, that goal has already been exceeded significantly. Within the next few years Sulzer plans above all property sales in Winterthur and at the Oberwinterthur industrial park.
This acquisition of Sulzer real estate increases the Allreal Group portfolio to nearly CHF 1.5 billion, almost 45 percent higher than at the beginning of 2002. Average net yield from the newly acquired properties is initially estimated at 7.6 percent.
The former Escher-Wyss site, a prime location in the Zurich-West district, represents one of the last major development zones within the city limits. Based on the existing rental contracts, however, all three parts of this site will still be industrially utilized until at least the end of 2006. For the development and realization of economically viable projects within the framework of urban planning, Allreal reckons with a timeframe of around ten years and an estimated investment volume of CHF 400–500 million.
The Sulzer Corporation (www.sulzer.com) is comprised of the four core divisions Sulzer Metco (coating technologies and services), Sulzer Turbomachinery Services, Sulzer Pumps (including services), Sulzer Chemtech (process components and services) and the venture division Sulzer Hexis (fuel cell systems). Sales by the core divisions in 2001 totaled CHF 1875 million (in 2000: CHF 1603 million). The realigned Sulzer Corporation now employs over 9000 people world-wide.
The Allreal real estate group (www.allreal.ch) combines a first-class property portfolio with general contractor and project development activities, together with related services. Project volume handled during the business year 2001 totalled CHF 600 million, and the real estate portfolio is currently valued at CHF 1.5 billion. Allreal, headquartered in Zurich, is a publicly listed company employing around 220 people, with branches in Basle and Berne.
This media release is published on the Internet at: www.sulzer.com/press.html and www.allreal.ch Þ Holding Þ Media |