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Credit Suisse Investment Foundation Real Estate Switzerland Commercial

Public

Product Presentation

Credit Suisse Asset Management (Switzerland) Ltd. Global Real Estate – Switzerland March 2018

March 2018 Global Real Estate – Switzerland 2/29

Overview

Product Overview Key Figures and Portfolio Information Activities in 2017 / 2018 Outlook for 2018 / 2019 Properties in the Assets

Product Overview

Neuhausen am Rheinfall, Victor von Bruns-Strasse 21: Office property with 3,784 m2 of office space and 92 parking spaces (year of construction 2011, market value CHF 25.2 mn, 1.9% of the portfolio)


Product Overview Profile

Young investment group (launched in 2010) with 29 properties and total assets of approx. CHF 1.4 bn

Diversified portfolio of attractive commercial properties in good locations. Interesting mix of tenants and usage

The valuation of the claims is made daily on the basis of the net asset value (NAV) – no premium/discount

Compared to other real estate investment groups, the premium or discount of 0.40%to the NAV is extremely attractive

The investment group is exempt from income tax and tax on capital

Accumulation (no distribution)

Stable return

Source: Credit Suisse AG


Product Overview Investment Guidelines

Direct holdings: Purchasing and long-term holding of commercial real estate

Contributions in kind

Sustainability (Minergie ®, greenproperty, photovoltaic installations)

Development projects are permissible up to a maximum of 30% of the overall portfolio

Allocation by usage types:

– Investments in real estate with office and retail areas must make up at least 60% of the total assets

– Logistics, commerce, industry and hotels must have a joint maximum weighting of 20% of the total assets

– Hotel and industrial use is only permitted as part of mixed-use properties

The debt financing ratio amounts to a maximum of one-third of the total market value of the portfolio



Product Overview Investment Strategy

The focus is on new and as-good-as-new buildings, as well as well-maintained commercial property with a modern infrastructure

The investment group invests mainly in office and retail real estate in good locations. Other types of use, such as logistics, production or commercial, complement the portfolio

The investment group invests throughout Switzerland, with a focus on the Mittelland region from St. Gallen to Geneva. The focus is on cities and urban areas with good infrastructure

The investment group invests in real estate with good access to public transport

The investment group mainly invests in real estate that also meets the current environmental needs of tenants

Long-term focus

New construction substance

Real estate structure

Geographical distribution

Public transport links

Source: Credit Suisse Asset Management (Switzerland) Ltd.

Key Figures and Portfolio Information

Versoix, Route de Suisse 160-162: Office property with 9,174 m2 of office space and 266 parking spaces (year of construction 2014, market value CHF 56.2 mn, 3.9% of the portfolio)

.


Key Figures and Portfolio Information Change in Assets (in CHF)

Source: Credit Suisse AG | Last data point: June 30, 2017

505

.9

744

.6

865

.9

1'1

07.8

1'2

06.5

1'2

93.3

1'4

20.1

162.

1

0.0

200.0

400.0

600.0

800.0

1'000.0

1'200.0

1'400.0

1'600.0

Market value

Emission

(in mn CHF)


CSA Real Estate Switzerland Commercial Key Figures Annual Financial Statements as of 30.06.2015 30.06.2016 30.06.2017

Total assets in CHF mn 1’206.5 1’293.3 1’420.16

Net assets in CHF mn 929.6 991.2 1’028.02

Asset value per unit in CHF 1’266.95 1’328.07 1’381.69

Rate of loss of rental income 5.87% 8.73% 7.53%

Debt financing ratio 21.37% 20.38% 25.53%

Debt ratio 22.95% 23.36% 27.61%

Operating profit margin (EBIT margin) 82.30% 80.58% 79.86%

Operating expense ratio (TERISA) GAV 0.56% 0.55% 0.54%

Operating expense ratio (TERISA) NAV 0.78% 0.72% 0.74%

Return on equity (ROE) 4.96% 3.86% 4.19%

Return on invested capital (ROIC) 3.88% 3.29% 3.30%

Investment return 4.77% 4.82% 4.04%

Average discount rate real/nominal 4.31% / 5.11% 4.07% / 4.87% 3.90% / 4.74%

Source: Data report as of June 30, 2017 Past performance and financial market scenarios are not reliable indicators of future performance.


CSA Real Estate Switzerland Commercial Net Performance as of January 31, 2018


Historical performance and financial market scenarios are not reliable indicators of future performance. The commissions and costs incurred upon issuance and redemption of fund units are not included in the performance data.

5.0% 4.8% 4.7% 4.6% 4.0% 0.4%5.7% 5.1% 5.8% 5.8% 5.4% 0.3%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

90

100

110

120

130

140

150

2013 2014 2015 2016 2017 2018

CSA RES Commercial

KGAST Immo-Index TR

1 month 3 months YTD 1 year 3 years 5 yearsCSA RE Commercial 0.38% 1.05% 0.38% 4.06% 13.94% 25.40%Benchmark 0.34% 1.55% 0.34% 5.46% 18.04% 31.06%


CSA Real Estate Switzerland Commercial Geographical Diversification

Source: Data report as of June 30, 2017


CSA Real Estate Switzerland Commercial Portfolio as of June 30, 2016



CSA Real Estate Switzerland Commercial Ten Largest Tenants


Tenant Rental end Share

Migros 31.05.2022* 13.46 %

Coop 30.09.2022* 8.32 %

Swisscom AG 30.06.2025* 6.56 %

LVMH Swiss Manufactures SA 31.12.2021 6.14 %

Orior AG 31.05.2031 4.85 %

SAP (Schweiz) AG 31.12.2020 3.87 %

F. Hoffmann-La Roche AG 31.12.2018 2.90 %

Swiss Post 31.07.2018 2.74 %

INDITEX S.A. 30.09.2019 2.18 %

Public institutions ZH 31.03.2020 2.05 %

* weighted data on the basis of the annual rent


Portfolio Information Remaining Term of the Rental Agreements


0%

5%

10%

15%

20%

25%


3.89%

2.98%

1.39%

3.76%

5.87%

8.73%

7.53%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Portfolio Information Rates of Loss of Rental Income


Versoix and Tolochenaz account for a vacancy rate of 73% of the portfolio.


On September 7, 2016, CSA Real Estate Switzerland Commercial received the Green Star Award from the international benchmarking initiative, Global Real Estate Sustainability Benchmark (GRESB), for its sustainability performance in 2016.

Key Figures and Portfolio Information Awards 2016


Activities in 2017 / 2018

Regensdorf, Althardstrasse 80: Office property with 14,984 m2 of office space and 350 parking spaces (year of construction 2002, market value CHF 61.0 mn, 4.3% of the portfolio)

.


Activities in 2017 / 2018

Completion of Projects Le Grand-Sacconex, Chemin du Pommier 40, Campus Santé (to be completed by February 2018)

Current Projects Wallisellen, Richtistrasse 2-6, «Serliana» (New Development)

Rental Successes


Outlook for 2018 / 2019

Tolochenaz, Lake Geneva Park, Building C: Office property with 6,274 m2 of office space and 142 parking spaces (year of construction 2013, market value CHF 44.2 mn, 3.1% of the portfolio)

.


Outlook for 2018 /2019

Current Projects Wallisellen, Richtistrasse 2-6, «Serliana» (New Development)

Basel, Aeschenvorstadt 72

Source: Credit Suisse Asset Management (Switzerland) Ltd.


Properties in Assets Le Grand-Saconnex, Campus Santé


Single Tenant: Global Fund to Fight Malaria, AIDS and Tuberculosis

Office building in clover leaf shape with 27,729 m2 of office space and 240 parking spaces Construction started: October 2016 End of construction: February 2018 Total investment: CHF 142.4 mn Market value: CHF 146.8 mn Rental income: CHF 6.8 mn Net return: CHF 3.82%


Projects in the Assets Wallisellen, Serliana


New development beside Glattzentrum and Richti site consisting of three buildings: r2: Office use (15,249 m2) r6: Hotel use (3,273 m2) r4: Parking garage with motel and office space (total 5,701 m2) parking garage: 100 spaces Construction started: August 2016 End of construction r4/r6: Q3 2018 End of construction r2: Q3 2019 Total investment: CHF 132.9 mn Market value: CHF 136.5 mn Rental income: CHF 7.0 mn Net return: CHF 4.60%


Our Priorities

Securing an attractive return on investment

Focus on sustainability for new-build projects and on renovation projects

Qualitative growth and further targeted rejuvenation of the portfolio by purchases, new development projects and sales

Consistent implementation of proactive vacancy management with our competent team

Holding in a tax-exempt, broadly diversified real estate investment group

Diversified portfolio

Stable investment return

Long-term focus

Qualitative growth

Vacancy management



Portfolio Manager Stephan Auf der Maur WDIR 14, Product Management Sihlcity – Kalandergasse 4 8070 Zurich, Switzerland [email protected] Phone: +41 44 334 43 26

Credit Suisse Real Estate Switzerland Commercial Your Contact

Key Figures from June 30, 2017, Financial Statements Currency CHF End of the financial year June 30 Initial issue date July 1, 2010 Management fee 0.40% p.a. TERISA GAV 0.54% TERISA NAV 0.74% Spread (remains in the assets) 0.40% Total assets (in CHF mn) 1’420.2 Net assets (in CHF mn) 1’028.0 Investment return 4.04% Number of real estate properties 29 (incl. building land and construction projects upon completion) Rent default rate 7.53% Debt financing ratio 25.53% Security number 11354362 ISIN CH0113543620 The CSA Real Estate Switzerland Commercial investment group is currently closed for subscriptions.


Properties in the Assets (Extract) CSA Real Estate Switzerland Commercial


Properties in the Assets

Neuhausen am Rheinfall Construction year: 2011

CHF 25.8 mn

1.8% of the portfolio

Commercial property

Sitten, Rue de la Piscine Construction year: 2015

CHF 32.3mn


Commercial property

Tolochenaz, Lake Geneva Park Construction year: 2013

CHF 44.2 mn


Commercial property

Zürich, Dörflistrasse Construction year: 1987

CHF 40.6 mn


Commercial property





Versoix, Route de Suisse Construction year: 2014

CHF 56.2 mn


Commercial property

Stabio, Via Laveggio Construction year: 1958, 2009

CHF 55.2 mn


Commercial property

Basel, Aeschenvorstadt Construction year: 1990

CHF 48.2 mn


Commercial property

Basel, Aeschenvorstadt 72 Construction year: 1967

CHF 18.4 mn


Commercial property



Zollikofen, Bernstrasse Construction year: 2005

CHF 40.0 mn


Commercial property

Spreitenbach, Industriestr. Construction year: 1969

CHF 82.0 mn


Commercial property

Oensingen, Ostringstrasse Construction year: 2001

CHF 20.9 mn


Commercial property


Matran, Route du Bois Construction year: 2007

CHF 63.3 mn


Commercial property


Disclaimer

The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee, nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. This document was produced by Credit Suisse Group AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor copies of it may be sent to, taken into, or distributed in the United States or distributed to any US person (within the meaning of Regulation S of the US Securities Act of 1933 in its applicable form). This document may not be reproduced, either in part or in full, without the written permission of CS. The key risks of real estate investments include limited liquidity in the real estate market, changing mortgage interest rates, subjective valuation of real estate, inherent risks in respect of the construction of buildings, and environmental risks (e.g. land contamination). Credit Suisse Investment Foundation, Zurich, is the issuer and manager of CSA products. The custodian bank is Credit Suisse (Switzerland) Ltd., Zurich. The articles of incorporation, regulations, and investment guidelines, as well as the most up-to-date annual report and fact sheets, may be obtained free of charge from the Credit Suisse Investment Foundation. Only pension funds domiciled in Switzerland that are not subject to tax are permitted as direct investors. Copyright © 2018 Credit Suisse Group AG and/or its affiliates. All rights reserved.

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