Credit Suisse Real Estate Fund Siat€¦ · projects. Of these properties and projects, two-thirds are "normal" residential properties and one-third are commercial real estate properties

Credit Suisse Real Estate Fund Siat

2016 Capital Increase

Real Estate Investment Management

August 2016

August 2016 Real Estate Investment Management 2

Credit Suisse Real Estate Fund Siat Key Facts

Implementation of a capital increase in the third quarter of 2016.

The proceeds from the issue will be used for further portfolio expansion, for ongoing renovations, and for short-term reduction of debt capital.

Ongoing construction projects currently worth CHF 420 million, with an attractive gross yield of 4.5% on average.

Issue is taking place using the "best effort” method.

Volketswil, Ackerstrasse 43–55,

CHF 27.2 million


Credit Suisse Real Estate Fund Siat Use of the Proceeds of the Issue and Advantages for Investors

Flexibility in fund

management

Access to a broadly

diversified portfolio

Repayment of debt capital

Capital requirements for

ongoing construction

projects and renovations

The fund is very broadly diversified with over 168 properties and 4 construction projects. Of these properties and projects, two-thirds are "normal" residential properties and one-third are commercial real estate properties in good locations with long-term rental agreements.

The thriving pipeline of construction projects that are ongoing or that have been acquired, as well as property expansions, will result in future capital obligations. Targeted renovations help to improve the quality, attractiveness, and sustainability of the real estate portfolio.

The proportion of debt capital after the issue will be just over 10%, which will still ensure a certain "leverage effect" while providing a solid equity base.

The increase in equity capital will provide the fund with room for maneuver for the next two to four years and will allow it to keep making consistent use of market opportunities.

Low rate of loss of rental

income

Low rate of loss of rental income of 3.54% compared with the average of all listed real estate funds at 3.94%, as of March 31, 2016.

Source: Credit Suisse AG


Credit Suisse Real Estate Fund Siat Key Figures for the Capital Increase

Type of issue: Best-effort basis with subscription rights trading

Subscription period: 22.8.2016–2.9.2016 (12:00 p.m.)

Subscription rights trading on SIX: 22.8–31.8.2016

Payment under subscription: 9.9.2016

Issue price: CHF 147.00 net per share certificate

Subscription ratio: 12:1 (12 existing certificates to 1 new one)

Target volume: CHF 174.5 million

Issuing commission: 2.5% of NAV (included in the issue price)

Fund unit identifier: Swiss security number: 1,291,370

ISIN: CH0012913700

Subscription rights identifier: Swiss security number: 33,202,665

ISIN: CH0332026654


Ongoing projects in construction: approx. CHF 420 million

Place Utilization Volume in CHF Gross yield

Purchase/co

nstruction

"Skylights," Basel Schorenweg Residence with LIVING SERVICES CHF 40 million 4.80% 2014–2016

Basel, Erlenmatt BF A Residence with commercial uses CHF 74 million 4.15% 2016–2019

Cadenazzo, "Sasso Corbaro" Residential CHF 17 million 4.70% 2016–2018

Neuchâtel, "Jardin du Lac" Residential CHF 19 million 5.20% 2014–2016

Credit Suisse Real Estate Fund Siat Current Projects


Dübendorf, "Im Giessen" (Acquired 2014)

Phases Utilization Volume in CHF Gross yield Construction

Phase 1: Giessenhof Residential CHF 93 million 4.50% 2016–2018

Phase 2: Giessenturm Residence with commercial uses CHF 124 million 4.50% 2017–2019

Phase 3: Former laboratory,

former office, former CasAroma

Residence with commercial uses CHF 53 million 4.50% 2019–2021

Total CHF 270 mn. 4.50% 2016-2022



Credit Suisse Real Estate Fund Siat Current Projects for the Fund's Net Assets

Dübendorf, "Im Giessen" "Skylights," Schorenweg, Basel Cadenazzo, "Sasso Corbaro"

Neuchâtel, "Jardin du Lac" Basel, "Erlenmatt"


Dübendorf, "Im Giessen"

Total investment volume of CHF 270 million (gross yield approx. 4.5%)

Approximate utilization Approx. 32,000 m2 residential = approx. 380 apartments 7,000m2 commercial ~370 parking spaces

Phase 1 166 units (Giessenhof) 200 m2 commercial/141 parking spaces Implementation from mid-2016 Occupied from mid-2018

Phase 2 Apt. bldg. with approx. 130 units (Giessenturm) 6,000 m2 commercial*/100 parking spaces Implementation from mid-2017

Phase 3 Approx. 80 units Approx. 1,000 m2 comm./approx. 100 parking spaces Implementation from 2019 * 6,000 m2 of commercial leases with

rental agreements lasting 20 years

Credit Suisse Real Estate Fund Siat Current Projects for the Fund's Net Assets


Credit Suisse Real Estate Fund Siat

Current Portfolio

Real Estate Investment Management

August 2016


Credit Suisse Real Estate Fund Siat Fund Profile

A predecessor fund was founded in 1938 – the CS REF Siat is the oldest Swiss real estate fund. It holds real estate in indirect property ownership.

As of March 31, 2016, the fund has a portfolio of CHF 2,659 million or currently 171 properties, including projects under construction.

Broad investor base, with thousands of private and institutional investors.

Traded on the SIX Swiss Exchange with an average turnover of CHF 1.4 million per day.

Supervised by the Swiss Financial Market Supervisory Authority (FINMA) pursuant to the Federal Act on Collective Investment Schemes (CISA) and the Federal Ordinance on Collective Investment Schemes (CISO).

Cham, Alpenblick 7/9

Source: Audited annual report for Credit Suisse REF Siat as of September 30, 2015


Credit Suisse Real Estate Fund Siat Key Figures

Annual reports 30.9.20131 30.9.20141 30.9.2015 31.3.2016

Net fund assets in CHF million 1,725.9 1,741.6 2,048.5 2,010.8

Market value of properties in CHF million 2,330.4 2,440.6 2,648.0 2,659.9

Premium/discount 21.06% 24.99% 29.43% 39.26%

Distribution in CHF 5.40 5.40 5.40 n/a

Direct yield 3.27% 3.14% 2.90% n/a

Payout ratio 91.38% 87.61% 93.67% n/a

Investment return 5.88% 5.04% 8.80% 1.99%2

Debt financing ratio (% of market value) 17.40% 20.29% 14.20% 16.65%

Total fund expense ratio (TERREF GAV) 0.75% 0.73% 0.73% 0.72%

Total fund expense ratio (TERREF NAV) 1.02% 1.03% 1.04% 0.99%

Rate of loss of rental income 2.97% 3.34% 3.53% 3.54%

The performance figures do not take into account the issue and redemption commissions or expenses. Historical returns and financial market scenarios are no guarantee of current and future results. These figures have been calculated according to the "Key Figures for Real Estate Funds" specialist instruction from the Swiss Funds & Asset Management Association (SFAMA). 1 Key figures have not been adjusted to the new CISO-FINMA calculation. 2 Calculation for six months (October 1, 2015–March 31, 2016)

Source: Audited annual reports of Credit Suisse REF Siat


Credit Suisse Real Estate Fund Siat Performance as of June 30, 2016

Historical returns and financial market scenarios are no guarantee of current and future results. The performance data does not take into account the commissions and

fees charged for the issuance and redemption of units.

Last data point: 30.6.2016 Source: Credit Suisse AG


Credit Suisse Real Estate Fund Siat Broad Geographical Diversification

Market value in CHF

over 50 million 20–50 million 5–20 million up to 5 million

Source: Audited annual report for Credit Suisse REF Siat as of September 30, 2015


Credit Suisse Real Estate Fund Siat Sample Properties within the Fund's Net Assets

Morges, Avenue Paderewski 26a–26c

CHF 34.8 million (1.3% of the portfolio)

Horgen, Hintere Etzelstrasse 23/25,

Einsiedlerstrasse 208, CHF 14.2 million (0.5%

of the portfolio)

Basel, Schorenweg 20, 22, 30, 32


Sargans, Malerva-Süd (phase 3)


Pregny-Chambèsy, Chemin des Cornillons

CHF 65.7 Mio. (2.5% of the portfolio)

Langenthal, Hopferenfeld (phase 3)



Real Estate Investment Management Your Contacts

Samuel Egger

Fund Manager

Vice President

[email protected]

Tel. +41 44 333 89 86

Do you have questions about the capital increase?

We can give you the answers.

Christian Braun, CIIA

Real Estate Strategies & Advisory

Vice President

[email protected]

Tel. +41 44 333 44 00


Disclaimer

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. In particular, it is recommended that the recipient 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. 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 LivingPlus 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 © 2016 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.

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Credit Suisse Real Estate Fund Siat€¦ · projects. Of these properties and projects, two-thirds are "normal" residential properties and one-third are commercial real estate properties