City takes over site in Oerlikon
ABB has finalised the sale of a development site to the city of Zurich. The more than 25,000 square metre site in Zurich Oerlikon will be used for commercial purposes as well as affordable housing.
Zurich-based technology company ABB has finalised the sale of a “significant urban development site” to the city of Zurich, according to a press release. The city is planning a mixed-use development including affordable housing, commercial and socio-cultural uses and the creation of outdoor spaces on the approximately 25,500 square metre site in Zurich Oerlikon. The development site is located close to ABB’s global headquarters. The sale, which was completed on 27 March, was agreed in an urban development contract between the two parties in 2021, according to the press release.
ABB will report an operating gain on disposal of around 120 Swiss francs before tax in the first quarter of 2025 and receive net cash of around 90 million Swiss francs. These amounts include the effect of the value-added compensation of almost 17 million francs from the development plan amendment and compensation for the zonal relocation of affordable housing totalling around 22 million francs, which ABB had to pay under the agreement.
With this transaction, ABB is not only supporting the city of Zurich in the construction of additional affordable housing, but also in the further development of the Neu-Oerlikon neighbourhood, according to the ABB press release. As part of the agreement, the former ABB production site and current event venue Halle 550 will be retained in the long term.
ABB’s corporate headquarters in Zurich-Oerlikon and the historic ABB building will remain unaffected by the sale.