Credit Suisse: Funds come through the pandemic year well
Credit Suisse's real estate funds were hardly affected by the Corona pandemic in the 2020/21 financial year. Their performance ranges between 8.4% and 19.8%.
CS 1a Immo PK increases market values
The market value of the properties held by Credit Suisse 1a Immo PK rose from CHF 4.48 million in the previous year to CHF 4.79 million in the year under review. Secondly, the fund acquired and sold properties, which led to a net increase in market values of CHF 139.4 million. Thirdly, investments in construction projects led to an increase in market values of around 53.8 million.
The rent default rate fell from 8.4% to 7.8% within the year. According to Credit Suisse, rent waivers as a result of the covid pandemic amounted to 1.4% of target rental income, compared with 1.7% in the previous year. The investment return in 2020/21 was 5.1%, up from 5.2% a year earlier, and the premium rose to 16.4% from 2.2%. Accordingly, the fund had reported a performance of 19.4% in secondary market trading (previous year: -1.0%).
The fund's IPO, which was planned for next year, will be slightly delayed. According to Credit Suisse, this is due to "extensive clarifications with the cantonal tax authorities". Provided that all the necessary approvals are granted, CS 1a Immo PK should be listed in the fourth quarter of 2022 and not in the second quarter as initially planned.
CS REF Interswiss yields 4.0%
Credit Suisse Real Estate Fund Interswiss recorded a decline in investment returns to 4.0% (previous year: 8.6%) in the 2020/21 financial year. The market value of the properties fell slightly from 2.42m to 2.38m, and the rental default rate came in at 9.8% (previous year: 9.9%). Rent abatements as a result of the Corona pandemic amounted to 1.9% of target rental income (prev. year: 2.0%). The performance was 8.4% after -3.9% in the previous year. The premium increased from 0.7% to 4.6%.
With the new money from the capital increase in September, the fund acquired two fully let properties in Aigle and Etoy and two further properties in Berne and Geneva. In addition, a new replacement building in Lausanne and the conversion of a residential property in Berne were completed.
CS REF Logisticsplus expands its portfolio
Credit Suisse Real Estate Fund Logisticsplus increased the market value of its portfolio from CHF 643.9 million to CHF 813.4 million - mainly through acquisitions and the completion of two construction projects: The fund acquired properties in Pfäffikon, Hunzenschwil, Villars-sur-Glâne and Pratteln and completed two construction projects in Zell (LU) and Bülach - which are fully let, according to Credit Suisse. The Parking Kunstmuseum in Basel is scheduled for completion in mid-December 2021, and the fund is currently preparing another construction project for a logistics property in Bülach.
The fund's investment return reached 5.2% (previous year: 4.2%), while performance fell from 24.2% to 10.0%. The premium fell from 39.1% to 36.2%. The fund hardly had to grant any rent reductions due to the pandemic: They amounted to 0.% of the target rental income (previous year: 0.0%).
CS REF Siat benefits from high residential share
The market value of the properties held by Credit Suisse Real Estate Fund Siat reached 3.67 million in the financial year just ended, up from 3.48 million in the previous year. The appreciation was due in particular to the fund's high residential quota and the increased demand for residential properties, Credit Suisse reports. The fund sold two smaller properties in Lucens and acquired a residential project in Prangins. In addition, further construction projects are underway in Dübendorf and Spreitenbach.
The investment return of CS REF Siat was 6.4% (previous year: 6.0%). The rent default rate fell from 5.4% to 4.1%. Rent abatements due to the Corona pandemic amounted to 0.8% of target rental income, compared to 0.5% in the prior year. The performance amounted to 19.8% (previous year: 10.3%), the premium increased to 54.1% (previous year: 35.3%). (ah)
