CS funds yield between 3.5 and 8.9 percent
The real estate funds Credit Suisse 1a Immo PK, Credit Suisse REF Interswiss, Credit Suisse REF LogisticsPlus and Credit Suisse REF Siat achieved performances of between 3.5 and 8.9 percent in the 2015/16 financial year.
Credit Suisse 1a Immo PK generated an investment return of 5.3 percent and a performance of 6.0 percent in fiscal 2015/16. The logistics property Chemin Grenet 21 in Meyrin near Geneva was acquired, while four properties in Basel, Berne, Sion and Winterthur that were more in line with the strategy were sold. The fair value of the real estate portfolio increased from CHF 3.59 billion to CHF 3.68 billion in the 2015/16 reporting year. As of the end of September 2016, the portfolio consisted of 110 properties. Rental income increased from CHF 194.8 million to CHF 198.6 million.
CS 1a Immo PK invests in high-quality residential properties, mixed-use properties, commercial and industrial properties, and new construction projects that offer potential for returns and appreciation.
CS REF Interswiss with 7.9 percent performance
Credit Suisse Real Estate Fund Interswiss achieved a performance of 7.9 percent - compared with 3.4 percent in the previous year. The investment return, i.e. the distribution including performance measured against the net asset value, was 3.5 percent, down on the previous year's figure of 4.6 percent.
On July 1, 2016, CS REF Interswiss together with Credit Suisse REF LivingPlus and Credit Suisse REF Siat acquired the Erlenmatt Baufeld A project in Basel. The new center will comprise 312 rental apartments and 7,400 sqm of retail, restaurant and storage space. Execution work is scheduled to start in early 2017, with completion in spring 2019.
With 77 properties, CS REF Interswiss is the largest commercial real estate fund in Switzerland. The fair value in the portfolio shows an increase from CHF 2.26 billion to CHF 2.29 billion as of September 30, 2016.
At CHF 106.1 million, the fund's rental income is below the previous year's figure of CHF 119.9 million due to the change in the handling of vacancy costs as of October 1, 2015. The reason: In the case of total refurbishments, neither rents nor vacancies have since been recognized in the income statement, nor have vacancy costs been capitalized. The property in question is reclassified as construction in progress and no rent or vacancy is recognized from the time it is completely vacated until it is ready for occupation. From the time the property is ready for occupation, it is reclassified to existing properties and rents and vacancies are recognized again. In the case of partial renovations, the property remains on the balance sheet as investment property and rents and vacancies are recognized in the income statement. The overall renovation of Ambassador House in Zurich will be completed by the end of 2017.
CS REF LogisticsPlus significantly increases rental income
Credit Suisse REF LogisticsPlus generated rental income of CHF 14.3 million in the second fiscal year ended September 30, 2016, an increase of 32.5 percent year-on-year.
Net income increased by 12.6 percent to CHF 7.9 million. All properties in the portfolio are well leased, which is reflected in a low rent default rate of 0.8 percent. The fair value of the portfolio amounts to CHF 261.2 million (previous year: 224.9 million) - according to CS, the increase is due to the construction progress of the logistics center in Derendingen (SO).
The annual performance of CS REF LogisticsPlus is 3.5 percent. At 4.2 percent, the investment return is slightly above the previous year's figure (4.1%).
CS REF LogisticsPlus invests in logistics and logistics-related real estate in Switzerland. A capital increase is to be carried out in the first quarter of 2017.
CS REF Siat with 8.9 percent performance
CS REF Siat achieved a performance of 8.9 percent in the fiscal year ended September 30, 2016. The investment return is 4.1 percent.
The fair values of the properties showed a value of CHF 2.72 billion as of September 30, 2016, compared to CHF 2.65 billion in the previous year. The portfolio consists of 172 properties and projects. Rental income was increased year-on-year from CHF 131.2 million to CHF 135.1 million, with the residential segment contributing around two-thirds of income.
As a result of a capital increase in the third quarter of 2016, the fund received new money amounting to CHF 174.6 million. The funds are to be used for the further expansion of the real estate portfolio. In addition to the investment in the Erlenmattquartier in Basel (co-owned with CS REF LivingPlus and CS REF Interswiss), the fund has other projects in its portfolio, namely the Jardin du Lac apartment building in Neuchâtel, the Sasso Corbaro development in Cadenazzo, and the three stages of the Giessen site development in Dübendorf.
According to its own information, CS REF Siat is the largest residential real estate fund in Switzerland. It invests mainly in multi-family houses in large and medium-sized Swiss cities and their agglomerations. (ah)
