Post on 24-Sep-2020
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)
March 2018 Global Real Estate – Switzerland 4/29
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
March 2018 Global Real Estate – Switzerland 5/29
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
Source: Credit Suisse AG
March 2018 Global Real Estate – Switzerland 6/29
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)
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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)
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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.
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CSA Real Estate Switzerland Commercial Net Performance as of January 31, 2018
Source: Credit Suisse AG
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%
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CSA Real Estate Switzerland Commercial Geographical Diversification
Source: Data report as of June 30, 2017
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CSA Real Estate Switzerland Commercial Portfolio as of June 30, 2016
Source: Data report as of June 30, 2017
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CSA Real Estate Switzerland Commercial Ten Largest Tenants
Source: Data report as of June 30, 2017
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
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Portfolio Information Remaining Term of the Rental Agreements
Source: Credit Suisse AG | Last data point: June 30, 2017
0%
5%
10%
15%
20%
25%
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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
Source: Credit Suisse AG | Last data point: June 30, 2017
Versoix and Tolochenaz account for a vacancy rate of 73% of the portfolio.
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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
Source: Credit Suisse AG
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)
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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
Source: Credit Suisse AG
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)
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March 2018 Global Real Estate – Switzerland 20/29
Outlook for 2018 /2019
Current Projects Wallisellen, Richtistrasse 2-6, «Serliana» (New Development)
Basel, Aeschenvorstadt 72
Source: Credit Suisse Asset Management (Switzerland) Ltd.
March 2018 Global Real Estate – Switzerland 21/29
Properties in Assets Le Grand-Saconnex, Campus Santé
Source: Credit Suisse AG
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%
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Projects in the Assets Wallisellen, Serliana
Source: Credit Suisse AG
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%
March 2018 Global Real Estate – Switzerland 23/29
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
Source: Credit Suisse AG
March 2018 Global Real Estate – Switzerland 24/29
Portfolio Manager Stephan Auf der Maur WDIR 14, Product Management Sihlcity – Kalandergasse 4 8070 Zurich, Switzerland stephan.aufdermaur@credit-suisse.com 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.
Source: Credit Suisse AG
Properties in the Assets (Extract) CSA Real Estate Switzerland Commercial
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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
2.2% of the portfolio
Commercial property
Tolochenaz, Lake Geneva Park Construction year: 2013
CHF 44.2 mn
3.1% of the portfolio
Commercial property
Zürich, Dörflistrasse Construction year: 1987
CHF 40.6 mn
2.9% of the portfolio
Commercial property
Source: Credit Suisse AG
March 2018 Global Real Estate – Switzerland 27/29
Properties in the Assets
Source: Credit Suisse AG
Versoix, Route de Suisse Construction year: 2014
CHF 56.2 mn
3.9% of the portfolio
Commercial property
Stabio, Via Laveggio Construction year: 1958, 2009
CHF 55.2 mn
3.9% of the portfolio
Commercial property
Basel, Aeschenvorstadt Construction year: 1990
CHF 48.2 mn
3.4% of the portfolio
Commercial property
Basel, Aeschenvorstadt 72 Construction year: 1967
CHF 18.4 mn
1.3% of the portfolio
Commercial property
March 2018 Global Real Estate – Switzerland 28/29
Properties in the Assets
Zollikofen, Bernstrasse Construction year: 2005
CHF 40.0 mn
3.0% of the portfolio
Commercial property
Spreitenbach, Industriestr. Construction year: 1969
CHF 82.0 mn
5.8% of the portfolio
Commercial property
Oensingen, Ostringstrasse Construction year: 2001
CHF 20.9 mn
1.4% of the portfolio
Commercial property
Source: Credit Suisse AG
Matran, Route du Bois Construction year: 2007
CHF 63.3 mn
4.4% of the portfolio
Commercial property
March 2018 Global Real Estate – Switzerland 29/29
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.