CS REF International repositions itself
The plan is to discontinue over-the-counter trading. In addition, more investments are to be made in other sectors.
Credit Suisse Funds AG intends to convert the Credit Suisse Real Estate Fund International (CS REF International) to a net asset value (NAV)-based fund as of November 30, 2023. The fund company has announced that over-the-counter trading will be discontinued from this date. The move had already been announced last December, The financial supervisory authority Finma still has to give its approval.
Credit Suisse Funds cites the fact that over-the-counter trading has increasingly failed to meet the expectations of investors and the fund management company in recent quarters as the reason for the move. The conditions for the issue and redemption of units remain unchanged, Credit Suisse emphasizes. It is examining the possibility of offering investors the option of brokering fund units in the future.
Valuation falls by nine percent
As part of the planned changeover, the fund management company had the market values of the properties belonging to the real estate fund revalued as at September 30, 2023. According to Credit Suisse, the valuations have fallen by an average of around 9% compared to June 30, 2023. This will result in a reduction in the NAV as at November 30, 2023. In addition to the devaluations, the new NAV will also depend on other factors such as exchange rate fluctuations and the development of debt capital. As at June 30 of this year, the NAV was CHF 876.76.
More housing and logistics
CS REF International is currently in the process of selling several properties. This is intended to service the units that were terminated on December 31, 2022 and reduce the leverage ratio in the medium term. As part of its investment policy, the fund intends to reinvest additional free funds primarily in residential and logistics properties in international growth markets, Credit Suisse Funds announced. This is intended to further promote sector diversification. The fund recently reduced its allocation of retail space from over 30% to currently around 7%.
As at June 30, CS REF International had a portfolio of 54 properties in eleven countries with total fund assets of just under CHF 3.9 billion. (ah)
