public sustainable investments. with cs ref green property.€¦ · sustainable investments. with...

Sustainable Investments.

With CS REF Green Property.

Public

Credit Suisse Asset Management (Switzerland) Ltd.

Global Real Estate – Switzerland

October 2017

October 2017 Global Real Estate – Switzerland 2/27

Credit Suisse Real Estate Fund Green Property Key Facts

Execution of a capital increase of CHF 130.20 mn from October 30 to November 10, 2017.

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.

Source: Credit Suisse Asset Management (Switzerland) Ltd.

Past performance and financial market scenarios are not reliable indicators of future performance.


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.

The pipeline of projects that are ongoing or that have been acquired will result in future capital obligations.

Construction

Projects

Capital

Requirements

Debt Capital

Repayment

Scope of

Action

Diversification Sustainability

Credit Suisse Real Estate Fund Green Property Use of the Issue Proceeds and Advantages for the Investor



Credit Suisse Real Estate Fund Green Property Key Figures on the Capital Increase

Type of issue Best-effort issue with subscription rights trading

Subscription period October 30 to November 10, 2017, 12:00 noon (CET)

Subscription rights trading on SIX

October 30 to November 8, 2017

Issue date November 17, 2017

Issue price CHF 115.00 net per unit

Subscription ratio 15:1 (15 previous units for one new unit)

Target volume CHF 130.20 mn

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

Fund unit identifier Security number: 10 077 844 ISIN: CH010 077 844 5

Subscription rights identifier Security number: 38 267 166 ISIN: CH038 267 166 4



Credit Suisse Real Estate Fund Green Property Portfolio Expansion

Location Utilization Total volume Remaining amount Gross yield Construction

Aarau, "Gleis 0" 48% residential, 52% retail CHF 108 mn CHF 24 mn 4.37% 2016-2018

Wil, Altstattwiese 100% residential CHF 25 mn CHF 1 mn 5.44% 2015-2017

Bülach, "Im Guss," construction site 1 52% retail, 48% commercial CHF 23 mn CHF 13 mn 4.82% 2018-2019

Bülach, "Im Guss," construction site 2 100% residential CHF 71 mn CHF 54 mn 4.08% 2018-2019

Bülach, "Im Guss," construction site 5 100% residential CHF 77 mn CHF 58 mn 4.10% 2018-2019

Winterthur, "Lokwerk" 100% residential CHF 33 mn CHF 33 mn 4.24% 2019-2020


Northwestern Switzerland 100% residential CHF 61 mn CHF 61 mn 4.01% 2018-2020

* Contracts are notarized. Entry not yet done, since the building permit is not yet legally binding.

Source: Credit Suisse Asset Management (Switzerland) Ltd. | Past performance and financial market scenarios are not reliable indicators of future performance

Intended Purchases

Purchases*

Ongoing Projects


Central Switzerland 68% residential, 32% retail CHF 26 mn CHF 26 mn 4.11% 2018-2020

Total ongoing projects, purchases, and intended purchases CHF 424 mn CHF 270 mn 4.31% 2015-2020


Credit Suisse Real Estate Fund Green Property Distribution of Projects, Purchases and intended Purchases


78%

22%

Structural breakdown by actual net rental

income

Residential commercial property

48%

6% 6%

40%

Regional breakdown by investment costs

Zurich Eastern Switzerland

Central Switzerland Northwest Switzerland


Investment volume CHF 108 mn

Target rental income CHF 4.7 mn p.a.

Gross yield 4.37%

Utilization 41% residential 45% retail 14% parking

Completion Summer 2018

Occupancy Retail 100% Residential 44%

Sustainability Minergie greenproperty

Projects in the Fund's Net Assets "Gleis 0," Aarau

© Raumgleiter GmbH






Gross yield 5.44%

Utilization 92% residential 8% parking

Completion November 2017

Occupancy 42%

Sustainability Minergie

greenproperty

Projects in the Fund's Net Assets "Novaflora.2," Wil




Projects in the Fund's Net Assets "Im Guss," Construction Area 1, Bülach



Gross yield 4.82%

Utilization 52% retail 23% office 16% commercial

9% restaurants


Rental occupancy 41%

Sustainability Minergie-Eco greenproperty







Gross yield 4.08%



Start of marketing Summer 2018

Sustainability Minergie-Eco

greenproperty







Gross yield 4.10%



Start of marketing Summer 2018

Sustainability Minergie-Eco

greenproperty




Projects in the Fund's Net Assets "Lokwerk," Winterthur



Gross yield 4.31%

Sustainability Minergie greenproperty

Utilization 100% residential

Construction approval Summer 2017

Construction Fall 2018*

Completion Spring 2020*

*If approval is legally binding



Fund Profile and Key Figures

Zug, "Uptown" | www.uptown-zug.ch

High-rise built in 2011 with office, restaurant, and residential use distributed over 18 floors and with a market value of CHF 107.0 million (4.5% of the portfolio)


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 2016.

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.



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.



Credit Suisse Real Estate Fund Green Property greenproperty Quality Seal by Market Value

Source: Annual report of CS REF Green Property | Last data point: December 31, 2016

-

100

200

300

400

500

600

700

800

900

1'000

Without quality seal Bronze Silver Gold

Millio

ns

Other Certificates

Minergie-Eco + LEED Platinum

Minergie + DGNB Platinum

Minergie-P-Eco

Minergie + Minergie-Eco

Minergie-Eco

Minergie

None


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 2016.

Credit Suisse Real Estate Fund Green Property Awards in the Field of Sustainability

The service building "twistagain" in Bern Wankdorf received the first certificate in accordance with the Switzerland Standard for Sustainable Construction SNBS 2.0.



Credit Suisse Real Estate Fund Green Property Change in Fund's Net Assets (in CHF)

* Merger with CS REF PropertyPlus as of July 1, 2016

30

7.0

32

3.3

63

6.5

65

5.7

72

1.6

79

9.0

87

4.7

2'3

69

.3

2'4

65

.0

30

0

30

9

17

3

13

0.2

0.0

500.0

1'000.0

1'500.0

2'000.0

2'500.0

3'000.0

Fund's total

assets

Issuance

(in CHF millions)



Credit Suisse Real Estate Fund Green Property Financial Figures

Annual reports 12/31/20151 06/30/20161 12/31/20151 06/3020171

Fund's net assets in CHF mn 658.3 659.3 1,871.8 1,875.8

Market value of properties in CHF mn 865.1 895.1 2,343.0 2,395.7

Premium/discount 13.66% 20.13% 17.63% 21.37%

Distribution per unit in CHF 3.50 2.05 1.70 n/a

Direct yield 2.81% 1.55% 2.89% n/a

Payout ratio 98.08% 132.14% 97.09% n/a

Investment return 4.22% 3.43%2 5.68% 1.77%2

Debt financing ratio (in % of market value) 21.21% 24.35% 16.96% 18.71%

Fund's operating expense ratio (TERREFGAV) 0.64% 0.66% 0.67% 0.66%

Fund's operating expense ratio (TERREFMV) 0.70% 0.75% 0.75% 0.71%

Rent default rate 10.46% 9.85% 8.01% 5.63%

Source: Annual and semi-annual reports for CS REF Green Property | last data point: June 30, 2017

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


Credit Suisse Real Estate Fund Green Property Geographic Distribution of Properties

Source: Annual reports of CS REF Green Property | Last data point: December 31, 2016

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%

Market values in CHF

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


Credit Suisse Real Estate Fund Green Property Structural Allocation by Actual Net Rental Income

34.20%

14.30%

9.65%

3.45%

26.10%

4.60%

7.70%

Office

Retail

Hotels, cinemas, restaurants

Warehouses

Apartments

Others

Parking

Source: Annual reports of CS REF Green Property | Last data point: December 31, 2016

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


Properties in the Fund's Net Assets

Bern, "twistagain"

Construction year: 2016

CHF 88.1 mn

3.7% of the portfolio

Commercial property

greenproperty Gold

Dietikon, "Westhöfe"


CHF 61.0 mn


Mixed-use property

greenproperty Gold

Eysins, "Terre Bonne"


CHF 49.2 mn


Commercial property

greenproperty Silver

Basel, Hammerstrasse


CHF 24.7 mn


Commercial property

Minergie

©Losinger Marazzi AG ©Losinger Marazzi AG




Geneva,

Rue F. Hodler

Construction year: 61/07

CHF 43.1 mn


Commercial property


Lucerne,

"Lakefront Center"


CHF 120.8 mn


Commercial property

greenproperty Bronze

Rorschach,

"Trischli's"


CHF 39.8 mn


Mixed-use property

greenproperty Gold

Schlieren,

"amRietpark"

Construction years: 12/13/15

CHF 175.2 mn


Mixed-use property





Wallisellen, "Zentrum"


CHF 122.2 mn


Commercial property


Winterthur, "Roy"


CHF 34.0 mn


Residential property

greenproperty Gold

Zug, "Foyer"


CHF 210.9 mn


Commercial property

greenproperty Gold

Zurich, "Accu"


CHF 179.2 mn


Mixed-use property

greenproperty Bronze

©Anliker Immobilien



Urs Frey Real Estate Portfolio Manager

Director [email protected]

Phone +41 44 334 31 50*

Credit Suisse Real Estate Fund Green Property Your Contacts

Christian Braun, CIIA Real Estate Strategies & Advisory

Vice President [email protected]

Phone +41 44 333 44 00*

* Please note that telephone calls to these numbers may be recorded. By making a call, you confirm your agreement with this business practice.



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.

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