Credit Suisse Real Estate Fund LivingPlus › media › assets › asset... · 2017-10-31 · Credit Suisse Real Estate Fund Global Key Figures Real Estate Investment Management May

Credit Suisse Real Estate Fund Global

Capital Increase 2015

May 2015

Real Estate Investment Management


Summary – Capital Increase 2015

May 2015 Real Estate Investment Management

The current portfolio consists of ten

properties with a total market value of CHF

324 million

Debt financing ratio is 34% of total market values – in the future, the average encumbrance must not exceed one third of

the market value

New capital is necessary in order to ensure

future growth – a capital increase will be carried out in the maximum amount of CHF

119 million from June 1 to June 12, 2015

The funds will be used to acquire additional

properties

Several interesting investment opportunities

in the defined target markets have been

identified

Leeds, «Princes Exchange», Princes Square (GB)

2


Success factors

Hedging

Know How

Innovation

CS REF Global hedges currency risks to a great extent.

Credit Suisse manages more than CHF 10 billion in international real

estate investments.

CS REF Global is the first stock exchange-listed Swiss real estate

fund that invests internationally.

Performance* The fund aims for an annual performance of 5%-6% after hedging

including a distribution of ~4% in the long term.

Liquidity Listing on the SIX Swiss Exchange since November 29, 2011 – with

average trading volume of CHF 305,000/day (2015)

* Target return is neither a projection, forecast or guarantee of future performance, nor achievement of such.

Source: Credit Suisse AG

May 2015 Real Estate Investment Management 3


Target markets – regions

Real Estate Asset Management locations Target markets


Strategic allocation

Americas: 33.3%


Europe: 33.3%


Asia-Pacific: 33.3%

Data are indicative only and do not reflect the actual portfolio at the time of acquisition.


4


Target markets – type of utilization



Primary use: office space Primary use: retail space

Secondary use: parking Secondary use: residential Secondary use: warehouse/logistics Secondary use: restaurant

5


Target Markets – Real Estate Strategy „Core“

Properties

Microlocation

Countries

„Core“-properties are generally characterized by high structural and architectural quality

Within the cities, the emphasis is on the Central Business District (CBD) or similar good locations

The focus is on countries with high market transparency, market liquidity and legal certainty

Tenants /

Leases

The high income stability is achieved through medium to long-term leases with creditworthy tenants

Cities Investments are made primarily in the leading economic centers




Key Figures


Historical returns and financial market scenarios are no guarantee of current or future performance. The performance data takes no account of the commissions and fees charged for the issuance and redemption of units. 1 The fund was launched as at 29.11.2011. The first financial year was extended until 31.12.2012. Some key figures are not reliable due to new launch of the fund.

Annual reports / semi-annual reports 31.12.2014 31.12.2013 31.12.20121)

Fund’s net assets in CHF mn 232,9 228,6 227,8

Market Value of properties in CHF mn 323,6 309,1 296,8

Premium % -3,10 -6,57 5,36

Distribution in CHF mn 3.80 3.60 1.80

Distribution yield % 3,89 3,89 1,73

Distribution ratio % 85,87 79,00 83,44

Return on investment % 5,71 2,19 1,57

Third-party in % of market value % 33,94 34,59 27,08

Total expense ratio (TERREF GAV) % 1,12 1,17 0,92

Total expense ratio (TERREF NAV) % 1,67 1,75 1,03

Rental losses % 10,41 2,14 0,32

7


Performance as of 30.04.2015



Last data point: 30.04.2015

1) Historical returns and financial market scenarios are no guarantee of current or future performance. The performance data takes no account of the commissions and

fees charged for the issuance and redemption of units.

8

Agios and Disagio of the Swiss Real Estate Funds

Average of listed funds1: 36.4%


Last data point: 30.04.2015 Source: Credit Suisse AG, Datastream, last annual or semi-annual report of the funds

1 if the other funds CS 1a Immo PK, CS REF International and CS REF Global are included, the weighted agio is 34.7%

9


International diversified real estate portfolio


Source: last annual report of CS REF Global Last data point: 31.12.2014

Germany 25.70%

UK 18.44%

Japan 17.94%

Australia 15.19%

USA 11.72%

Netherlands 7.34%

Chile 3.67%

Europe 51.95%

APAC 30.50%

Americas 17.55%

10


Diversification by Use


Source: Credit Suisse AG Last data point: 31.12.2014

75%

15%

2%

0%

1%

8%

Office

Retail

Warehouses

Apartments

Others

Parking

11

Currency hedging is carried out by the

experts of the currency overlay of Credit Suisse Group AG

Currency fluctuations of the net assets are

mainly hedged against the Swiss franc (CHF)

Foreign currency forward contracts with a term of two to six months are usually used

The individual transactions and the resulting gains or losses are reported in detail in the

annual and semi-annual report


Currency Hedging



Last data point: 30.04.2015

12


Taxes

In order to achieve an optimized tax

structure, the real estate assets are held

either directly or indirectly through one or

more subsidiaries, according to country-

specific characteristics – thereby

significantly reducing the tax burden at the

fund level.

An internationally active, renowned tax

consulting firm has been retained as tax

advisor.

The real estate fund holds the assets

indirectly through subsidiaries. Accordingly,

investors domiciled in Switzerland for tax

purposes are subject to the usual tax rate.




Objects on fund assets


Office building located on Karlstrasse in in

the City Center of Munich

The main railway station is just five minutes

away

Construction year: 2005

Rental floor space: 11,500 square meters

Eight stories (of which 2 subterranean levels

with 42 parking spaces)

Anchor tenants:

- Bayern Invest

- International School of Management

- Rating Service Unit (RSU)

Weighted average lease term of five years


München, «Karlshöfe», Karlstrasse 35 (DE)

CHF 58.7mn (16.5% of the portfolio)

14




Office building located in Rotterdam

Waalhaven

The port of Rotterdam is Europe’s largest

sea port



Eight stories

Anchor tenant is Argos North Sea Group –

one of Europe’s fastest growing oil trading

companies

The rental agreement runs till end of 2023


Rotterdam, «Port City III», Waalhaven Z.z 11 (NL)

CHF 21.8 mn (6.1% of the portfolio)

15




Office building in the city center of Leeds

Construction year:1999


Eight stories

Anchor tenant is DLA Piper, one of the leading international law firms

The rental agreement runs till end of 2019


Leeds, «Princes Exchange», Princes Square (GB)


16




Commercial property located in the urban district of Shibuya in Tokyo. The district is

known for its shopping and entertainment

facilities.



Three floors

The tenant is Escrit – a company listed on

the Tokyo stock exchange specializing in

event management

The term of the rental agreement runs till

2027


Tokio, «J4», Shibuya-ku (JP)


17


Office property ideally located in Perth's financial district

Built in 1972 (fully renovated in 1995)

Rentable floor area: 10,760 square meters

The main tenant has not renewed its

contract. For the majority of this rental area,

a new rental contract was already concluded on September 1, 2014 with a term till

September 2021


45 St Georges Terrace, Perth, Australia

CHF 44.0 million (12.4% of the portfolio)

18






Office property situated in a prime location in Houston

Construction year: 1973 (completely

renovated in 1998)


Multitenant building: Of the 20 tenants, only

two occupy more than 10% of the total floor space: Old Republic National Title Insurance

Company and Vantage Energy Services

Weighted average lease term of 5.4 years


Houston, 777 Post Oak Boulevard (US)


19




Office property located in a very good location in Santiago de Chile



The property is currently 91% leased to well

known companies

There is a tenant mixture of multinational

companies and local service companies

− Philips (40%)

− Omnicom Media Group

− Euro Assistance

− Masvida

Weighted average lease term of 4.8 years


Santiago de Chile, »Ombú», Av. Andrés Bello (CL)


20





A portfolio in the city center of Stuttgart existing of two office properties and one

residential property

Stuttgart is the capital of the state of Baden-

Württemberg in Germany

Rental floor space: 7’419 square meters

Anchor tenant: Allianz Deutschland AG

The term of the rental agreement runs til

2020

Stuttgart, »Allianzportfolio», (DE)


21

CS Real Estate Fund Global



Issue volume: Maximum CHF 119.0 million

Type of issue: The issue will take place on a best-effort basis as part

of a public subscription offer in Switzerland.

Subscription Period: June 1 to June 12, 2015, 12:00 (CET)

Subscription rights trading: Official subscription rights trading will be possible from

June 1 to June 11, 2015 on the SIX Swiss Exchange

AG.

Issue date: June 19, 2015

Issue price: CHF 103.00 net per unit

Subscription ratio: Two (2) old units entitle the investor to subscribe to one (1) new unit.

Security no. / ISIN (unit): 13 985 167 / CH013 985 167 6

Security no. / ISIN (subscription right): 28 203 972 / CH028 203 972 3





Use of Funds: Investment Opportunity Pipeline


Austin, 501 Congress

Investment opportunity in downtown Austin, Texas

The property was completely refurbished in 2014/2015

Total leasable area of 11'404 m2 (including retail area

of 1,713 m2 on the ground floor)

Currently 76% leased, with Dropbox as main tenant

with a lease until April 2025

Remaining term of the leases is 8.8 years

Investment volume: USD 50 million

Net rental income: USD 2.57 million

Net initial yield: 5%

501

Congress

Real Estate Investment Management May 2015 24





Denver, MarketWorks

Investment opportunity in downtown Denver

The property was built in 1872-1902 and refurbished in

the years1980, 2005, 2010 and in 2014

Office property with a rentable area of 11'217 m2 (incl.

Retail space on the ground floor)

The building is 85% leased to an attractive tenants mix

Remaining term of the leases is approximately 3 years

Investment volume: USD 29 million



25





Los Angeles, 1311 Third Street Promenade

Investment opportunity in downtown Santa Monica

This office property, with a leasable area of 1,997 m2,

is currently being completely renovated and will be ready

for occupation in the summer of 2015

All of the office space is already fully leased to WeWork

with a lease that runs until September 2030

Investment volume: USD 25.5 million



26





Tokyo, Ginza 7-8-8

The property is located in the prestigious shopping

district "Ginza" in Tokyo

The 1987 built retail building has a leasable area of

1,066 m2

The building is fully leased to Vacheron Constantin

Investment volume: CHF 40 million

Net rental income: CHF 1.26 million

Net initial yield: 3.4%

27

Securing cash

flow

Distribution

Growth through

equity

Diversification


Priorities

The high income stability is achieved through medium to long-term leases with creditworthy tenants

The distribution for the financial year 2014 increased from CHF 3.60 to CHF 3.80; dividend yield 3.9%

The fund carries out a capital increase in June 2015, in order to further expand diversification

The aim is to further expand the geographical diversification of the portfolio

Souce: Credit Suisse AG


Market Value The market value of the properties increased by 4.7% in the fiscal year 2014

28


Your contact partners



*Key figures as per semi-/ annual-reports

Ulrich Braun

Strategies & Advisory

Director [email protected]

Tel. +41 44 332 58 08

Francisca Fariña Fischer

Product Management

Director [email protected]

Tel. +41 44 332 81 74

29

Appendix


Why Credit Suisse?

Key Facts & Figures

One of the leading Real Estate platforms

in the world

More than 75 years of Real Estate expertise

EUR 34.3 billion in real estate assets under

management

Investments in over 1,200 properties

in 20 countries

210 Real Estate specialists worldwide, offices

in Zurich, Frankfurt, New York, Singapore

Experienced team with strong acquisition,

finance and real estate management

background

Strong embedded risk management culture


Last data point: December 31, 2014

31

Real Estate Investment Management

Global real estate experience – sample properties


Magdalena Norte,

Santiago

Old Stock Exchange,

Vancouver

121 Bloor Street

Toronto Temple Quay,

Bristol

1099 NY Avenue,

Washington DC

Endemol HQ,

Amsterdam

Laimer Würfel, München

Sihlcity,

Zürich

Toranomon,

Tokio

Elisabeth Street,

Brisbane

Goulburn Street,

Sydney

Zara Building, Fukuoka

32

Why Credit Suisse? – top property fund manager

Ranked 1st by AuM1 in Europe – no. 8 globally

Top 10 fund managers

(non-listed/commingled REF)

Global

(EUR m)

Blackstone 63,291

Brookfield Asset Management 45,966

UBS Global Asset Management 36,346

Pramerica Real Estate Investors 32,667

J.P. Morgan Asset Management 26,259

Morgan Stanley Real Estate Investing 24,566

CBRE Global Investors 24,361

Credit Suisse 24,204

Deka Real Estate 23,700

RREEF 21,311

Top 10 fund managers

(non-listed/commingled REF)

Europe

(EUR m)

Credit Suisse 20,961

Deka Real Estate 20,098

CBRE Global Investors 16,419

UBS Global Asset Management 15,920

Aviva Investors 11,814

BNP Paribas REIM 10,775

Blackstone 10,570

AXA Real Estate 10,102

Aberdeen Asset Management 10,071

Union Investment 10,025

1 The league table is based on non-listed real estate funds/commingled funds under management as of 31.12.2012. If the listed Swiss real estate fund are taken into account, the AuM of Credit Suisse in real estate rise to EUR 35,121 mn globally Last data point: June 2013 Source: INREV/ANREV Fund Manager Survey 2013


Why Credit Suisse? – property and office locations

Strong footprint covering major markets

Vancouver

Chicago Boston

New York Houston Washington, DC

Toronto

Calgary

Ottawa

Santiago

São Paulo

Montreal

Zurich

London

Amsterdam

Leeds

Glasgow

Hamburg

Berlin

Munich

Frankfurt

Madrid

Lisbon

Paris

Brussels

Milan

Vienna

Geneva

1 Austria, Belgium, Czech Republic, Poland, Portugal, Sweden Last data point: December 2013 Source: Credit Suisse AG

Fukuoka

Singapore

Tokyo

Perth

Melbourne

Brisbane

Sidney

Wellington

Properties Real Estate Asset Management offices Credit Suisse Hedging-Griffo offices


Switzerland: 1,105 properties in over 300 locations

Germany: 61 properties in 31 locations

Netherlands: 21 properties in 10 locations

United Kingdom: 17 properties in 11 locations

France: 8 properties in 5 locations

Spain: 5 properties in 3 locations

Italy: 5 properties in 3 locations

Rest of Europe: 13 properties in 6 countries1

34

Why Credit Suisse? – global network

International capabilities based on the Credit Suisse network

REAM New York

Acquisition and Property Asset Management Americas 11 properties in 3 countries

Credit Suisse locations Regional headquarters Centers of Excellence

REAM: Real Estate Asset Management Last data point: December 2013 Source: Credit Suisse AG

REAM Frankfurt

Fund Management, Acquisition and Property Asset Management Europe 130 properties in 12 countries

REAM Zurich

Fund Management, Acquisition and Property Asset Management Switzerland 1,105 properties in 300 locations

REAM Singapore

Acquisition and Property Asset Management Asia-Pacific 10 properties in 3 countries


Disclaimer

This document constitutes Marketing Material and is not the result of a financial analysis or research and therefore not subject to the “Directives on the Independence of Financial Research” (Swiss Bankers Association). The content of this document does therefore not fulfill the legal requirements for the independence of financial analyses and there is no restriction on trading prior to publication of financial research. This document was produced by Credit Suisse AG and/or its affiliates (hereafter referred to as "CS") with the greatest of care and to the best of its knowledge and belief. However, CS provides no guarantee with regard to its content and completeness and does not accept any liability for losses that might arise from making use of this information. The opinions expressed in this document are those of CS at the time of writing and are subject to change at any time without notice. Unless otherwise indicated, all figures are unaudited. This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of CS. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this document nor any copy thereof may be sent, taken into or distributed in the United States or to any U.S. person (as defined in Regulation S under the US Securities Act of 1933, as amended).

Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor's reference currency. Historical returns and financial market scenarios are no guarantee of present and future performance. Performance data do not take into account any commissions and costs charged for issue and redemption. Furthermore, there is no guarantee that the performance realized will reach or surpass that of the relevant benchmark index.

Credit Suisse Real Estate Fund Global is an investment fund established under Swiss law in the category of “real estate funds,” in accordance with the Swiss Federal Act on Collective Investment Schemes. The fund management company is Credit Suisse Asset Management Funds AG, Zurich. The custodian bank is Credit Suisse SA, Zurich. Subscriptions are only valid on the basis of the current sales prospectus, with integrated fund agreement, and the most recent semi-annual or annual report. The sales prospectus with integrated fund agreement as well as the semi-annual and annual reports may be obtained free of charge from Credit Suisse Asset Management Funds AG, Zurich and from any bank of Credit Suisse AG in Switzerland.

Copyright © 2015 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.


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Credit Suisse Real Estate Fund LivingPlus › media › assets › asset... · 2017-10-31 · Credit Suisse Real Estate Fund Global Key Figures Real Estate Investment Management May