Sustainable Investments. With CS REF Green Property.

Transcription

1 Public Sustainable Investments. With CS REF Green Property. Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate Switzerland October 2017

2 Credit Suisse Real Estate Fund Green Property Key Facts Execution of a capital increase of CHF mn from October 30 to November 10, The proceeds of the issue will be used for further expansion of the portfolio as well as for the reduction of debt capital in the short term. Ongoing projects, purchases, and intended purchases amounting to CHF 424 million and an average gross yield of 4.3%. The debt financing ratio stood at 18.71% as of June 30, 2017, around 30% if future project commitments are taken into account. With the issue, the debt financing ratio, including project commitments, is reduced to around 25%. Issue is taking place using the "best effort" method. Past performance and financial market scenarios are not reliable indicators of future performance. Global Real Estate Switzerland October /27

3 Credit Suisse Real Estate Fund Green Property Use of the Issue Proceeds and Advantages for the Investor Construction Projects Capital Requirements Debt Capital Repayment Scope of Action Diversification Sustainability The pipeline of projects that are ongoing or that have been acquired will result in future capital obligations. Investors continue to benefit from a "leverage effect" while a sound equity ratio is ensured. The new funds ensure the capacity to act for the next two to four years and the ability to seize investment opportunities. Investors gain access to a broadly diversified portfolio of 42 existing properties and five construction projects. Sustainable construction creates the conditions for the continuing ability to meet challenges in the future. Global Real Estate Switzerland October /27

4 Credit Suisse Real Estate Fund Green Property Key Figures on the Capital Increase Type of issue Subscription period Subscription rights trading on SIX Best-effort issue with subscription rights trading October 30 to November 10, 2017, 12:00 noon (CET) October 30 to November 8, 2017 Issue date November 17, 2017 Issue price Subscription ratio Target volume Issuing commission Fund unit identifier Subscription rights identifier CHF net per unit 15:1 (15 previous units for one new unit) CHF mn 2.5% of NAV (included in the issue price) Security number: ISIN: CH Security number: ISIN: CH Global Real Estate Switzerland October /27

5 Credit Suisse Real Estate Fund Green Property Portfolio Expansion Ongoing Projects Location Utilization Total volume Remaining amount Gross yield Construction Aarau, "Gleis 0" 48% residential, 52% retail CHF 108 mn CHF 24 mn 4.37% Wil, Altstattwiese 100% residential CHF 25 mn CHF 1 mn 5.44% Bülach, "Im Guss," construction site 1 52% retail, 48% commercial CHF 23 mn CHF 13 mn 4.82% Bülach, "Im Guss," construction site 2 100% residential CHF 71 mn CHF 54 mn 4.08% Bülach, "Im Guss," construction site 5 100% residential CHF 77 mn CHF 58 mn 4.10% Winterthur, "Lokwerk" 100% residential CHF 33 mn CHF 33 mn 4.24% Purchases* Location Utilization Total volume Remaining amount Gross yield Construction Northwestern Switzerland 100% residential CHF 61 mn CHF 61 mn 4.01% Intended Purchases Location Utilization Total volume Remaining amount Gross yield Construction Central Switzerland 68% residential, 32% retail CHF 26 mn CHF 26 mn 4.11% Total ongoing projects, purchases, and intended purchases CHF 424 mn CHF 270 mn 4.31% * Contracts are notarized. Entry not yet done, since the building permit is not yet legally binding. Past performance and financial market scenarios are not reliable indicators of future performance Global Real Estate Switzerland October /27

6 Credit Suisse Real Estate Fund Green Property Distribution of Projects, Purchases and intended Purchases Regional breakdown by investment costs Structural breakdown by actual net rental income 22% 40% 48% 78% 6% 6% Zurich Eastern Switzerland Residential commercial property Central Switzerland Northwest Switzerland Global Real Estate Switzerland October /27

7 Projects in the Fund's Net Assets "Gleis 0," Aarau Investment volume Target rental income CHF 108 mn Gross yield 4.37% Utilization CHF 4.7 mn p.a. 41% residential 45% retail 14% parking Completion Summer 2018 Occupancy Retail 100% Residential 44% Sustainability Minergie greenproperty Past performance and financial market scenarios are not reliable indicators of future performance. Raumgleiter GmbH Global Real Estate Switzerland October /27

8 Projects in the Fund's Net Assets "Novaflora.2," Wil Investment volume Target rental income CHF 25 mn Gross yield 5.44% Utilization CHF 1.53 mn p.a. 92% residential 8% parking Completion November 2017 Occupancy 42% Sustainability Minergie greenproperty Past performance and financial market scenarios are not reliable indicators of future performance. Global Real Estate Switzerland October /27

9 Projects in the Fund's Net Assets "Im Guss," Construction Area 1, Bülach Investment volume Target rental income CHF 24 mn Gross yield 4.82% Utilization CHF 1.13 mn p.a. 52% retail 23% office 16% commercial 9% restaurants Completion Summer 2019 Rental occupancy 41% Sustainability Minergie-Eco greenproperty Past performance and financial market scenarios are not reliable indicators of future performance. Global Real Estate Switzerland October /27

10 Projects in the Fund's Net Assets "Im Guss," Construction Area 2, Bülach Investment volume Target rental income CHF 71 mn Gross yield 4.08% Utilization CHF 2.89 mn p.a. 95% residential 5% parking Completion Summer 2019 Start of marketing Summer 2018 Sustainability Minergie-Eco greenproperty Past performance and financial market scenarios are not reliable indicators of future performance. Global Real Estate Switzerland October /27

11 Projects in the Fund's Net Assets "Im Guss," Construction Area 5, Bülach Investment volume Target rental income CHF 77 mn Gross yield 4.10% Utilization CHF 3.13 mn p.a. 95% residential 5% parking Completion Summer 2019 Start of marketing Summer 2018 Sustainability Minergie-Eco greenproperty Past performance and financial market scenarios are not reliable indicators of future performance. Global Real Estate Switzerland October /27

12 Projects in the Fund's Net Assets "Lokwerk," Winterthur Investment volume Target rental income CHF 33 mn Gross yield 4.31% Sustainability Utilization CHF 1.38 mn p.a. Minergie greenproperty 100% residential Construction approval Summer 2017 Construction Fall 2018* Completion Spring 2020* *If approval is legally binding Past performance and financial market scenarios are not reliable indicators of future performance. Global Real Estate Switzerland October /27

13 Fund Profile and Key Figures Zug, "Uptown" High-rise built in 2011 with office, restaurant, and residential use distributed over 18 floors and with a market value of CHF million (4.5% of the portfolio)

14 Credit Suisse Real Estate Fund Green Property Profile Largest Swiss real estate fund with sustainable properties the fund was launched in April 2009 and merged with CS REF PropertyPlus at the beginning of July Broadly diversified portfolio by properties, regions, types of use, and tenants with 42 existing properties and five construction projects with a market value of approx. CHF 2,395.7 mn. Sustainability the aim is for projects and properties to meet the requirements of greenproperty the quality seal for sustainable construction. Global Real Estate Switzerland October /27

15 Credit Suisse Real Estate Fund Green Property The Comprehensive Quality Seal: greenproperty Development in collaboration with Amstein + Walthert 2009 Based on Swiss Society of Engineers and Architects (SIA) recommendation 112/1: Sustainable Architecture Building Construction The following are fully or partially incorporated: Minergie Minergie-P Minergie-ECO/P-ECO The quality seal is awarded by the greenproperty association. The certification body is independent of Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate Switzerland October /27

16 Millions Credit Suisse Real Estate Fund Green Property greenproperty Quality Seal by Market Value 1' Other Certificates Minergie-Eco + LEED Platinum Minergie + DGNB Platinum Minergie-P-Eco Minergie + Minergie-Eco Minergie-Eco Minergie None Without quality seal Bronze Silver Gold Source: Annual report of CS REF Green Property Last data point: December 31, 2016 Global Real Estate Switzerland October /27

17 Credit Suisse Real Estate Fund Green Property Awards in the Field of Sustainability Both CS REF Green Property and its merger partner, CS REF PropertyPlus, were recognized by the international benchmarking initiative, Global Real Estate Sustainability Benchmark (GRESB), for their sustainability performance with the Green Star Award in The service building "twistagain" in Bern Wankdorf received the first certificate in accordance with the Switzerland Standard for Sustainable Construction SNBS 2.0. Global Real Estate Switzerland October /27

18 ' ' Credit Suisse Real Estate Fund Green Property Change in Fund's Net Assets (in CHF) 3'000.0 (in CHF millions) 2' ' ' '000.0 Fund's total assets Issuance * Merger with CS REF PropertyPlus as of July 1, 2016 Global Real Estate Switzerland October /27

19 Credit Suisse Real Estate Fund Green Property Financial Figures Annual reports 12/31/ /30/ /31/ / Fund's net assets in CHF mn , ,875.8 Market value of properties in CHF mn , ,395.7 Premium/discount 13.66% 20.13% 17.63% 21.37% Distribution per unit in CHF n/a Direct yield 2.81% 1.55% 2.89% n/a Payout ratio 98.08% % 97.09% n/a Investment return 4.22% 3.43% % 1.77% 2 Debt financing ratio (in % of market value) 21.21% 24.35% 16.96% 18.71% Fund's operating expense ratio (TER REF GAV) 0.64% 0.66% 0.67% 0.66% Fund's operating expense ratio (TER REF MV) 0.70% 0.75% 0.75% 0.71% Rent default rate 10.46% 9.85% 8.01% 5.63% 1) Key figures have been adjusted to the new SFAMA guidelines for real estate funds (as of September 13, 2016). 2) For the period from January 1 to June 30, 2017 Source: Annual and semi-annual reports for CS REF Green Property last data point: June 30, 2017 Global Real Estate Switzerland October /27

20 Credit Suisse Real Estate Fund Green Property Geographic Distribution of Properties 1 Zurich 42.95% 2 Eastern Switzerland 9.30% 3 Central Switzerland 21.80% 4 Northwestern Switzerland 8.75% 5 Bern 7.15% 6 Southern Switzerland - 7 Lake Geneva 6.75% 8 Western Switzerland 3.30% Source: Annual reports of CS REF Green Property Last data point: December 31, 2016 Market values in CHF over 50 million million 5 20 million up to 5 million Global Real Estate Switzerland October /27

21 Credit Suisse Real Estate Fund Green Property Structural Allocation by Actual Net Rental Income 4.60% 7.70% 26.10% 34.20% Office Retail Hotels, cinemas, restaurants Warehouses Apartments Others Parking 3.45% 9.65% 14.30% Source: Annual reports of CS REF Green Property Last data point: December 31, 2016 Global Real Estate Switzerland October /27

22 Properties in the Fund's Net Assets (Extract) CS REF Green Property

23 Properties in the Fund's Net Assets Losinger Marazzi AG Losinger Marazzi AG Basel, Hammerstrasse Bern, "twistagain" Dietikon, "Westhöfe" Eysins, "Terre Bonne" Construction year: 2008 Construction year: 2016 Construction year: 2011 Construction year: 2012 CHF 24.7 mn CHF 88.1 mn CHF 61.0 mn CHF 49.2 mn 1.0% of the portfolio Commercial property Minergie 3.7% of the portfolio Commercial property greenproperty Gold 2.6% of the portfolio Mixed-use property greenproperty Gold 2.1% of the portfolio Commercial property greenproperty Silver Global Real Estate Switzerland October /27

24 Properties in the Fund's Net Assets Geneva, Rue F. Hodler Lucerne, "Lakefront Center" Rorschach, "Trischli's" Schlieren, "amrietpark" Construction year: 61/07 CHF 43.1 mn 1.8% of the portfolio Commercial property greenproperty Silver Construction year: 2006 CHF mn 5.0% of the portfolio Commercial property greenproperty Bronze Construction year: 2011 CHF 39.8 mn 1.7% of the portfolio Mixed-use property greenproperty Gold Construction years: 12/13/15 CHF mn 7.3% of the portfolio Mixed-use property greenproperty Silver Global Real Estate Switzerland October /27

25 Properties in the Fund's Net Assets Anliker Immobilien Wallisellen, "Zentrum" Winterthur, "Roy" Zug, "Foyer" Zurich, "Accu" Construction year: 2010 Construction year: 2016 Construction year: 2012 Construction year: 2006 CHF mn CHF 34.0 mn CHF mn CHF mn 5.1% of the portfolio 1.4% of the portfolio 8.8% of the portfolio 7.5% of the portfolio Commercial property Residential property Commercial property Mixed-use property greenproperty Silver greenproperty Gold greenproperty Gold greenproperty Bronze Global Real Estate Switzerland October /27

26 Credit Suisse Real Estate Fund Green Property Your Contacts Urs Frey Real Estate Portfolio Manager Director Christian Braun, CIIA Real Estate Strategies & Advisory Vice President Phone * Phone * * Please note that telephone calls to these numbers may be recorded. By making a call, you confirm your agreement with this business practice. Global Real Estate Switzerland October /27

27 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. 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, 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 data does not take into account the commissions and fees charged for the issuance and redemption of units. Furthermore, no guarantee can be given that the performance of the benchmark will be reached or outperformed. The Credit Suisse Real Estate Fund Green Property is an investment fund governed by Swiss law in the "Real Estate Funds" category as defined by the Swiss Federal Act on Collective Investment Schemes. The management company is Credit Suisse Funds AG, Zurich. The custodian bank is Credit Suisse AG, Zurich. Subscriptions are only valid on the basis of the current sales prospectus with the integrated fund contract, the simplified prospectus, and the most recent annual report (or semi-annual report if more recent). The prospectus with the integrated fund contract, the simplified prospectus, and the annual and semi-annual reports are available free of charge from Credit Suisse Funds AG, Zurich, and from all Credit Suisse AG banks in Switzerland. Copyright 2017 Credit Suisse Group AG and/or its affiliated companies. All rights reserved. Global Real Estate Switzerland October /27