Credit Suisse launches distribution for new real estate fund
Credit Suisse has launched a new open-ended real estate fund, Credit Suisse ImmoTrend Europa. Public distribution has now commenced.
According to Credit Suisse, the new Credit Suisse ImmoTrend Europa fund pursues a core/core plus strategy and invests broadly diversified by country and type of use in well-let, high-quality properties. The focus is on retail, office and logistics properties, according to the bank.
The leverage ratio is expected to be 20% to 25%; the target return is 3.0% to 3.5%. The fund is aimed at both retail and institutional investors. Special share classes have been created for this purpose: for private clients, for institutional investors, high net worth private investors and asset managers, and a share class for clients who have concluded an asset management agreement with a subsidiary of Credit Suisse Group. One fund managed by CS is already invested in the new real estate fund, it adds.
According to the information provided, the fund was launched back in September 2018. In April of this year, the first two properties with a total value of around 47 million euros were secured by purchase agreement. The fund began sales in May.
The fund manager is Alexander Tannenbaum, Managing Director of Credit Suisse Asset Management Immobilien Kapitalanlagegesellschaft mbH.
Start-up portfolio consists of properties in Erfurt and Aachen
The first property is a 1993-built property at Bahnhofstrasse 38 in the center of Thuringia's state capital Erfurt. It comprises approximately 6,200 sqm of leasable space and was recently refurbished to new-build quality, according to CS. Retail and restaurant space is located on the first floor, with office space spread over five floors. According to the information, the building is almost completely leased to five users on a long-term basis.
The second property is located at Grosskölnstrasse 57-63 in downtown Aachen and is currently being developed by List Develop Commercial. A hotel with 4,355 sqm of leasable space is being built and will be added to the Credit Suisse ImmoTrend Europa portfolio after its expected completion at the end of 2019. The project comprises a modern two-star hotel with 144 rooms, an approximately 700 sqm retail space on the first floor and 18 parking spaces. The property is fully leased on a long-term basis to the budget hotel chain B&B and a drugstore chain. (ah)
