REFILE-Credit Suisse sells Swiss building to Norway pension fund

Thu Nov 29, 2012 7:43am EST

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* Sale for 1 bln Sfr to result in gain of 83.7 mln Sfr

* To lease building back for 25 years; option for 15 more

* Sale part of plan announced in July to boost capital

ZURICH, Nov 29 (Reuters) - Credit Suisse has sold its Uetlihof building in Zurich to a Norwegian pension fund for 1 billion Swiss francs ($1.07 billion) in a sale-and-leaseback deal that is part of a plan to boost the Swiss bank's capital.

Credit Suisse said in a statement the sale to Norges Bank Investment Management (NBIM) should result in a gain of 83.7 million francs after tax over the terms of the lease, due to last 25 years, with the option to extend for up to 15 years.

NBIM is acting for the Norwegian government pension fund.

In July, Credit Suisse announced a range of steps, including issuing new debt, paying bonuses in shares and asset sales to boost capital by 15.3 billion francs as it sought to respond to demands from the Swiss central bank.

The building sale comes as many European banks, under pressure from shareholders to cut costs, are selling prime real estate and moving staff out of city centres.

Credit Suisse built the Uetlihof building on the outskirts of the city in 1976 and inaugurated an ultra-modern extension earlier this year, making it the biggest office building in Switzerland, housing 8,000 employees. ($1 = 0.9322 Swiss francs) (Reporting by Emma Thomasson; Editing by Helen Massy-Beresford)

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