Credit Suisse Real Estate Fund International 2015 Capital Increase

Transcription

1 Switzerland: Only for qualified investors within the meaning of Art. 10 CISA and Art. 6 CISO Credit Suisse Real Estate Fund International 2015 Capital Increase October 2015

2 Capital increase November 2015 why participate? Reasons at a glance: Robust and high distribution yield makes the product attractive in the current negative interest rate environment Provides strong portfolio diversification effects to stock, bonds and Swiss real estate investments Rental markets are in many countries currently at an attractive point in the cycle Global focus allows for qualitative growth of the product Professional portfolio management and convincing track record of the product Oktober

3 Success Factors CS REF International was launched in 2005 as the first Swiss real estate fund with international investments. As of June 30, 2015, the fund had a market value of CHF 2,265.8 million (37 properties). Diversified portfolio with properties in America, Asia Pacific, and Europe. The fund is managed from Zurich, with local teams in the regions. In the first two weeks of November 2015, a capital increase of a maximum of CHF million will be conducted. The investor group is limited to qualified investors. OTC trading is handled by Credit Suisse. Average trading volume since 2007 of CHF 25.1 million per month. Washington DC (USA), 1099 New York Avenue Fund currency is the Swiss franc (CHF). Foreign currencies are largely hedged. USD million (7.1% of the portfolio) Market value as of June 30, 2015 October

4 Investment Policy and Strategy Investment policy Investments in high-yield real estate in the commercial and mixed-use segments Broad international diversification, with one-third invested each in America, Asia Pacific, and Europe Munich (D), "Laimer Würfel" EUR 77.5 million (3.6% of the portfolio) Strategy Buy-and-hold (80 90% of the portfolio): Long-term cash flows secured from properties in desirable locations Active portfolio management (10 20% of portfolio): Investment in growth markets and exploitation of market cycles in developed economies Market value as of June 30, 2015 October

5 Key Figures Annual reports / semi-annual reports Market value of properties CHF mn. 2, , , ,265.8 Premium % Distribution per unit in CHF n/a Distribution yield % n/a Performance % Rental losses % The performance figures do not take into account the issue and redemption commissions or expenses. Historical performance data is no guarantee of current or future performance and returns. The performance figures have been calculated according to the SFAMA's specialist instruction entitled "Key Performance Figures of Real Estate Funds" (Kennzahlen von Immobilienfonds), which entered into force on November 17, October

6 Net Performance as of ) Historical returns and financial market scenarios are no guarantee of current and future results. The performance figures do not take into account the issue and redemption commissions or expenses. Last data point: October

7 Premiums and Discounts on Swiss Real Estate Funds Average of Listed Swiss Funds 1 : 23.2% 1 If the funds traded OTC CS 1a Immo PK, CS REF International, CS REF LogisticsPlus, and CS REF Global are included, the weighted premium is 22.5% Last data point: August 31, 2015, Datastream, annual and semi-annual fund reports October

8 Internationally Diversified Real Estate Portfolio United States 27.44% Canada 14.16% Germany 14.04% Australia 12.95% UK 8.02% Netherlands 7.95% New Zealand 4.64% Chile 4.51% Japan 3.95% Ireland 2.35% Americas 46.11% Europe 32.36% APAC 21.53% Last data point: June 2015 Credit Suisse AG October

9 Diversification by Use Breakdown of useful floor area by net rental income 79.25% 0.60% Offices 7.05% 0.25% 1.00% 0.90% 10.95% Sales Hotels, cinemas, restaurants Storage Apartments Parking Misc. Last data point: December 31, 2014 October

10 Ten Largest Tenants Australian Tax Office (ATO) Endemol Nederland Holding B.V. DAB Bank AG Media-Saturn Holding Jenner & Block MillerCoors CW Television Inc. Commonwealth of Australia Regus Group Watson Farley & Williams Last data point: December 31, % 4.3% 2.7% 2.7% 2.5% 2.4% 2.4% 2.1% 2.1% 2.0% October

11 Hedging Currency hedging is carried out by the experts in the Currency Overlay Group at Credit Suisse. On average, 85% of the capital employed is hedged against currency fluctuations. Forward exchange contracts, generally with a term of two to six months, are used. The individual transactions, as well as the resulting profits or losses, are reported in detail in the annual and semi-annual reports. Last data point: July 31, 2015 October

12 Acquisitions H NZ, Wellington, Justice Centre Wellington (NZ), Justice Centre NZD million (4.6% of the portfolio) Consolidation of second half of building Use office Location CBD, Grade A Year of construction / total renovation 1960/2011 Investment volume NZD 158 million CHF 128 million Primary tenants Ministry of Justice, Accident Compensation Corp Term of lease 9.1 years Lettable area 35,267 m² Parking 134 parking spots Market value as of June 30, 2015 October

13 Key Figures for the Capital Increase Type of issue: Initial offering period: "Best effort" issue with OTC subscription rights November 2 13, 2015 (noon) OTC subscription rights: November 2 11, 2015 Issue date: November 20, 2015 Issue price: Subscription ratio: Target volume: Fund unit identifier: Subscription rights identifier: CHF net per share 12:1 (12 old shares for one new share) Maximum of CHF million Swiss security number: ISIN: CH Swiss security number: ISIN: CH October

14 Use of Issue Proceeds "The Exchange" construction project in Vancouver ( will be completed on schedule in the next 18 months. Capital requirements for new construction project of approx. CHF 120 million Three acquisitions in Asia Pacific and Europe are in the late acquisition phase. Capital requirements for acquisitions of approx. CHF 100 million The acquisition pipeline is well filled in an early phase. Portfolio likely to be further expanded In the months ahead, the funds from the issue will be used for further strategic expansion of the portfolio, and greater diversification by properties and tenants. October

15 Project under Construction CA, Vancouver, Old Stock Exchange Vancouver has been a target market since 2006 Purchase of the "Old Stock Exchange" and realization of market entry in August 2011 JV 80/20 with Swissreal Investments Ltd Vancouver (CA), The Exchange New Annex LEED Platinum office tower as an extension to the Old Stock Exchange Lettable area approx. 35,000 m 2 Investment volume approx. CHF 200 mn Approval obtained for rezoning in November 2012 Building permit obtained in August 2013 Planned construction period 2014 to 2017 October

16 Property in Due Diligence AUS, Brisbane, 99 Melbourne Street Brisbane (AUS), 99 Melbourne Street Completion 2006 Expected signing September 2015 Investment costs approx. AUD 41 mn Net property return 8.2% Use office Location South Brisbane Tenant structure 8 tenants Largest tenants IAG, Stockland, Austcover Lettable area 6,185 m² Parking spaces 34 October

17 Property in Due Diligence NZL, Auckland, 151 Victoria Street Auckland (NZL), 151 Victoria Street Completion 1961/62 Renovation 2007/ Investment costs approx. NZD 28 mn Net property return 6.3% Use office Location Auckland Tenant structure 1 tenant Tenant NZ Post Limited Lease expires 2022 Lettable area 4,777 m² Parking spaces 75 October

18 Pipeline GER, Düsseldorf, Kaistrasse 5 Year of construction 1997 Investment costs approx. EUR 28 mn Use office Location Medienhafen Primary tenant HPP architects Lettable area 8,800 m² Parking 194 spaces Düsseldorf (GER), Kaistrasse 5 October

19 Pipeline JPN, Osaka, Umeda Gate Tower Date of construction March 2010 Investment costs approx. JPY 15 bn Use office Location CBD Osaka Primary tenant Kajima Lettable area 15,761 m² Ground area 2,642 m² Parking 61 spaces Scale 21 floors, 1 basement level Osaka (JPN), Umeda Gate Tower October

20 Pipeline USA, Boston, 333 Summer Street Total renovation 2015 Investment costs approx. USD 69 mn Use Office Location Seaport District (Innovation District) Primary tenant LogMeln Lettable area 10,877 m² Ground area 1,620 m² Scale 7 floors Boston (USA), 333 Summer Street October

21 Benefits of Taking Part in the Capital Increase Risk diversification Close correlation between real estate and other asset classes such as money markets, equities, and bonds International properties offer very good diversification options versus real estate investments in Switzerland and REITs Qualitative growth Strict requirements on quality of locations, floor plans, soundness of the buildings, and sustainability of the real estate. Long-term increase in revenue Consistent real estate income thanks to a large number of tenants and sustainable property maintenance. The real estate portfolio focuses on the conclusion of long-term, indexed rental agreements. Professional portfolio management Active management of real estate and vacancy rates by qualified and experienced local specialists. High-yield real estate portfolio Participation in an international real estate fund that is broadly diversified with commercially used real estate. The real estate values are largely hedged against exchange rate fluctuations. October

22 Brief Portrait Portfolio Manager Rainer Scherwey SDRS 82, Product Management Sihlcity Kalandergasse Zurich Tel. 044 / Fax 044 / rainer.scherwey@credit-suisse.com Fund data* Fund domicile Switzerland Fund currency CHF End of the financial year December 31 Date of issue February 1, 2005 Management fee 0.60% p.a. TER REF (GAV) 0.85% Fund's net assets (in mn.) 2,094.9 Fund's total assets (in mn.) 2,538.0 Number of real estate properties 37 Last distribution March 31, 2015 Distribution CHF Direct yield 3.81% Lost rent ratio 4.63% Debt financing ratio 12.59% Bloomberg CSREFIN SW Swiss Security Number ISIN CH Group of investors Qualified investors 1 *Key figures as per the last semi-annual or annual report 1 as defined by Art. 10 (3) CISA October

23 Switzerland: Only for qualified investors within the meaning of Art. 10 CISA and Art. 6 CISO Credit Suisse Real Estate Fund International Appendix October 2015

24 Monthly Trading Volume on Average: CHF 25.1 Million Last data point: September 30, 2015 Source: Semi-annual and annual reports from Credit Suisse REF International October

25 Top Placement Countries, Locations, Properties 80% of the market value of the properties in the top segment Good overall quality Last data point: December 31, 2014 Source: Wüest & Partner AG October

26 Terms on Rental Agreements Last data point: December 31, 2014 October

27 Lost Rental Income Rates Last data point: December 31, 2014 Source: Semi-annual and annual reports from Credit Suisse REF International October

28 Sample Properties in the Fund's Assets Munich (D), "Laimer Würfel" CHF 80.7 million (3.6% of the portfolio) Bristol (UK), "Temple Quay," 3 Rivergate CHF 39.4 million (1.7% of the portfolio) Market value as of June 30, 2015 October

29 Sample Properties in the Fund's Assets Fukuoka (J), "Zara Tenjin," Tenjin Nishi Dori CHF 34.9 million (1.5% of the portfolio) Wellington (NZ), "Justice Centre," 19 Aitken Street CHF million (4.6% of the portfolio) Market value as of June 30, 2015 October

30 Sample Properties in the Fund's Assets Chicago (USA), 250 South Wacker Drive CHF 88.8 million (3.9% of the portfolio) Santiago (CL), Appoquindo 5400 CHF 70.2 million (3.1% of the portfolio) Market value as of June 30, 2015 October

31 Disclaimer This document was produced by Credit Suisse AG and/or its affiliates (hereinafter "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 and without notice. If nothing is indicated to the contrary, 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, the recipient is advised to ensure that the information 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 copies thereof may be sent, taken into, or distributed in the United States or to any US person (as defined in Regulation S of the US Securities Act of 1933 in its currently valid version). 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 current and future results. The performance figures do not take into account the issue and redemption commissions or expenses. Furthermore, no guarantee can be given that the performance of the benchmark will be reached or outperformed. Credit Suisse Real Estate Fund International is an investment fund governed by Swiss law categorized as "Real Estate Funds" in accordance with the Swiss Federal Act on Collective Investment Schemes adopted on June 23, 2006 (KAG).Investment in the Credit Suisse Real Estate Fund International is restricted to qualified investors in accordance with Article 10 (3) of the Collective Investment Schemes Act. The fund referred to in this publication is issued in Switzerland. The fund management company is Credit Suisse Asset Management Funds AG, Zurich. The custodian bank is Credit Suisse AG, Zurich. Subscriptions are valid only on the basis of the current sales prospectus, with integrated fund contract, and the most recent annual report (or semi-annual report, if more recent). The prospectus, fund contract, and the annual and semi-annual reports are available free of charge from Credit Suisse Asset Management Funds AG, Zurich, and from all Credit Suisse AG banks in Switzerland. Copyright 2015 Credit Suisse Group AG and/or its affiliates. All rights reserved. October