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TRANSCRIPT
CSA 2 Multi-Manager Real Estate GlobalAccess to Real Estate Funds worldwide
Switzerland: This product may only be distributed in or from Switzerland, to qualified investors as defined pursuant to the Collective Investment Schemes Act (“CISA”).
Credit Suisse Asset Management (Switzerland) Ltd.Indirect Real EstateAugust 2020
August 2020Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer found at the end of this document also applies to this page. 2
CSA 2 Multi-Manager Real Estate GlobalAn investment group of the Credit Suisse investment foundation pillar 2
6.1%annualized return since
inception1 and
CHF 1’211mnet asset value
>3’500underlying properties
Core plustarget return2 of 5%-7%
(hedged in CHF)
92.5%weighted average occupancy across the underlying target
funds
5.8 yearsweighted average unexpired
lease term
25.3%leverage ratio
Source: Credit Suisse1 The investment return is based on share class S which is subject to the founding investor fee. The reported net investment return is calculated using the “Modified Dietz” method.2 The target return is the IRR in CHF after foreign currency hedging and is based on a long-term investment horizon. Target return is not a projection, prediction, or guarantee of future performance, and there is no certainty that the target return will be achieved.
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119%
111%
100%100%
105%
110%
115%
120%
125%
Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
cum
ulat
ive
perf
orm
ance
CSA 2 Multi-Manager Real Estate GlobalPerformance comparison as of Q2 2020
Source: Credit SuisseComparison of the following share classes:Competitor I: Management fee: 0.60% p.a., investment volume: CHF 10-30 millionCSA 2 MMREG: share class L, management fee: 0.58% p.a., investment volume: CHF 10-20 millionCompetitor II: Management fee: 0.60% p.a., investment volume: CHF <10 millionThe peer comparison is not exhaustive. Multi-Manager Real Estate products were selected as they are considered to be major competitors. There may be other Multi-Manager Real Estate products in the market that have not been included in this comparison. The peer comparison is not intended to compare all the characteristics of the selected Multi-Manager Real Estate products.
CSA 2 MMREG
Competitor I
Competitor II
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Investment rationaleImportant reasons to invest
For many institutional investors, international real estate is still an underweighted asset classWhile around 58% of the investment volume in equities is invested internationally, the average for real estate is only around 13%.1
Added value through active managementAnalysis and navigation of the global non-listed real estate fund universe requires focused expertise and the maintenance of an extensive network of real estate fund managers and other fund managers. By actively managing the entire portfolio, significant added value can be achieved over individual, isolated investments.
Moderate volatility and low correlation with equitiesNon-traded/non-listed investment vehicles show significantly lower volatility than listed investment products and, in particular, have a lower correlation with equity markets.
Partial protection against inflationA long-term investor receives partial inflation protection with an investment in real estate assets, as rents automatically adjust to inflation in the medium term.
DiversificationReal estate investments can achieve good diversification with respect to existing investments, since the former have a low correlation with other asset classes such as equities and bonds.Within the international real estate segment, a high diversification effect is also achieved through different target funds, target fund managers, geographical criteria, sectors and risk profiles as well as investment timing.
Leading providerCredit Suisse Asset Management Indirect Real Estate is a trusted partner with focused expertise and institutional investment standards.
1 Source: Credit Suisse Swiss Pension Fund Index Q2 2020
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Portfolio overviewAllocation based on invested capital in CHF (million)
Source: Credit SuisseData as of Q2 2020.The illustration shows the invested capital of the underlying target fund in CHF (million).
Diversified Office Residential
EuropeAmericas APAC
Logistics
Opportunistic
Value Add
Core
2 fundsCHF 114 mn
3 fundsCHF 200 mn
5 fundsCHF 253 mn
2 fundsCHF 175 mn
2 fundsCHF 110 mn
1 fundsCHF 82 mn
2 fundsCHF 30 mn
4 fundsCHF 72 mn
3 fundsCHF 70 mn1 fund
CHF 44 mn
2 fundsCHF 47 mn
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CSA 2 Multi-Manager Real Estate GlobalPortfolio as of June 30, 2020 based on invested capital
Source: Credit Suisse* The allocation to "other" sectors mainly consists of exposure to medical offices, senior housing, self-storage and student housing. This is an indicative asset allocation that may change over time.
Sector allocation Allocation by investment style
26%
8%
23%
34%
9%1%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
Office Retail Residential Logistics Others* Liquidity
43% 38%
18%
1%0%
20%
40%
60%
80%
Americas Europe Asia-Pacific Liquidity
Investment guidelines
Regional allocation Allocation by structure
85%
11%3%
1%
Core Value-added Opportunistic Liquidity
16%
83%
1%
Closed-end Open-end Liquidity
Investment guidelines Current allocation
Current allocation
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Last 12 Months Since inception(04.10.16–30.06.20)
Net investment return in CHF(after management fees and hedging expenses)1
+6.13% p.a.(annualized)
(+7.98% in local currencies, -1.85%
hedging costs)
CSA 2 Multi-Manager Real Estate GlobalPortfolio as of June 30, 2020
Performance
Number of committed target funds 26
Number of underlying properties >3’500
Number of underlying tenants >10’000
Average occupancy of the underlying target funds 92.5%
Weighted average unexpired lease term 5.8 years
Weighed average debt maturity 5.1 years
Cash 1%
Leverage 25.3%2
Net asset value CHF 1’211m
Source: Credit Suisse1 The investment return is based on share class S which is subject to the founding investor fee. The reported net investment return is calculated using the “Modified Dietz” method.2 Leverage is based on the underlying target funds, while on a portfolio level, CSA2MMREG does not use any leverage.Historical performance data and financial market scenarios are not reliable indicators of future performance.
Highlights based on invested capital
Q2 2020-1.22%
Q1 20200.52%
Q4 20192.69%
Q3 20191.83%
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CSA 2 Multi-Manager Real Estate GlobalDiversified investor base
46
33
20
32
7
138
-
200
400
600
800
1 000
1 200
1 400
0
20
40
60
80
100
120
140
160
<2.5m 2.5m -5m
5m -10m
10m -25m
>25m Total
Committed capital in CHF million (RHS) Number of investors (LHS)
Total investors: >130
Source: Credit Suisse
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CSA 2 Multi-Manager Real Estate GlobalInvestment process
For illustrative purposes only.Source: Credit Suisse
Sourcing Due Diligence
Structuring Investment Committee
SubscriptionProcess
Monitoring/ Controlling
Information advantage Exclusive deal sourcing Global Credit Suisse platform Proprietary global network
Examples:− Proprietary due diligence questionnaire− >900 fund manager meetings/calls
Due diligence capacities Extensive commercial, legal and tax Due
Diligence Access to legal and tax experts Highly selective and rigorous, multi-phase
investment process
Examples:− On-site fund manager visits− Reference calls and background checks
Structuring capabilities Ensuring tax efficiency of the structure Implement strong legal control Best-in-class governance
Examples:− Negotiations with tax authorities for tax
rulings− Establish special purpose vehicles, if required
Negotiation power Onboarding, Know-Your-Client and Anti-
Money-Laundering procedures Bilateral agreement with General Partners Negotiate investor-friendly key terms
Examples:− Negotiate preferential fee terms− Benefiting from volume discount based on
CSAM’s overall investment platform
Experienced Investment Committee Strong track record Longstanding industry experience External investment committee member
Examples:− Four highly experienced IC members− Diverse background and knowhow
Investmentmonitoring Guideline compliance Handling capital calls &
distributions Performance
monitoringExamples− Leveraging tools of a
global bank− Proven processes
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Source: www.gresb.com1 Based on Q2 2020 data or latest available GRESB rating2 Based on invested capital in Q2 2020
CSA 2 Multi-Manager Real Estate GlobalEnvironmental Social Governance (ESG) –integral part of the due diligence process
The selection of investments follows a structured, broad-based investment process that takes both quantitative and qualitative criteria into account.
Potential investment opportunities undergo a detailed due diligence process, taking ESG-related factors into account as part of the assessment.
The Global Real Estate Sustainability Benchmark (GRESB) is analyzed as the leading ESG rating for all new and existing target funds.
In addition, other common ESG standards, ratings and guidelines are analyzed at the building, fund and fund manager levels.
ESG in the investment
process
ESG profile CSA2
Multi Manager Real Estate
Global
CSA2 Multi Manager Real Estate Global – since 10/2016
GRESB 63%1 of the funds have a GRESB rating 84%2 of the invested capital has a GRESB rating 77/100 – weighted average (based on GRESB rated funds) 721) – average GRESB rating for all private real estate entities in 2019
Other ESG standards/ ratings/ programs Various ratings and standards like LEED, BREEAM, Energy Star, UNPRI, etc. Proprietary policies, standards and ESG reports of target funds
77
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Real estate for diversificationStable income yields
Historical performance indications financial market scenarios are not reliable indicators of current or future performance.
Correlation between different asset classes Non-listed real estate funds are a suitable addition to a diversified portfolio due to their low correlation with equities and bonds.
The risk profile of non-listed real estate investments lies between the ones of bonds and equities.
High international diversification for non-listed real estate investments due to low cross-border correlation.
Attractive and stable income yields over the cycle in the current zero/negative interest rate environment.
2000-2019 Equitiesglobal
Bonds global REITs global Non-listed global real estate
Equities global 1 –0.09 0.86 0.44
Bonds global 1 –0.11 –0.08
REITs global 1 0.52
Non-listed global real estate
1
Stable and substantial distribution componentMSCI IPD Global Real Estate Index (Asset Level)
Sources: MSCI, Credit Suisse; last data point: December 2019
7,1% 6,5%8,2%
10,8%
15,0% 14,5%
10,5%
-5,5%-7,3%
8,9% 8,9%7,0% 8,3%
9,9% 10,7%7,4% 7,9% 7,3% 6,5%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Dec2001
Dec2002
Dec2003
Dec2004
Dec2005
Dec2006
Dec2007
Dec2008
Dec2009
Dec2010
Dec2011
Dec2012
Dec2013
Dec2014
Dec2015
Dec2016
Dec2017
Dec2018
Dec2019
% p
.a.
Standing Investments Income Return Standing Investments Capital Growth Standing Investments Total Return
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CSA 2 Multi-Manager Real Estate GlobalTaking advantage of a broad range of investment structures
Source: Credit Suisse
Secondary market
Acquire fund units from existing investorsvia the secondary market.
Stakes may be acquired at a discount to NAV and/or allow for immediate deployment of capital.
Primary market
Investment in a target fund through a subscription process.
Investments in the final close of a closed-end target fund may potentially benefit from an immediate valuation uplift.
Joint and programmatic ventures
Invest in portfolios of assets exclusive to our clients alongside an experienced manager in a predefined strategy.
Fund formation
Helping a manager launch a new strategy by providing seed capital while benefiting from preferential terms.
Deal structures
Traditional investments
Bespoke investments
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CSA 2 Multi-Manager Real Estate GlobalHighly qualified and experienced team
Investment Committee
Filippo RimaCFA, Dipl. Bauing. ETH
Head of Equity Asset ManagementDegree in Civil Engineering fromthe Swiss Federal Institute of Technology (ETH) in ZurichExperience: 22 years
Sven SchalteggerMRICS, CFA, CAIA
Lead Portfolio ManagerRelevant experience at UBS, Partners Group, SCM, and PwC, in both direct and indirect investmentsExperience: 18 years
Christoph BieriCEFA
Head of Indirect Real EstatePortfolio manager of Swiss indirect real estate mandatesExperience: 32 years
John DavidsonProf. Dr. oec. publ., CAIA
Co-Head of Real Estate at Lucerne University of Applied Sciences and ArtsRelevant experience in alternative investments at UBS and Swiss ReExperience: 20 years
Portfolio management
Sven SchalteggerMRICS, CFA, CAIA
Lead Portfolio ManagerRelevant experience at UBS, Partners Group, SCM, and PwC, in both direct and indirect investmentsExperience: 18 years
Philip SignerCFA
Worked in investment management at Zurich Insurance Group and portfolio advisory at Credit SuisseExperience: 6 years
Fabian Egg
Worked for Goldman Sachs in acquisition and asset management (European real estate and distressed debt)Experience: 5 years
Marcel Kaufmann
Worked as an independent advisor in private equityRelevant experience at SCM and Swiss ReExperience: 18 years
Fabian Stäbler
Business Manager in Asset Management EquitiesWas local COO for Asset Management in Singapore Experience: 15 years
Heinz TschaboldCAIA
Senior Portfolio Manager in Real Estate SecuritiesImplemented quantitative models in real estate at UBS WarburgExperience: 20 years
Product specialists
Oliver Smith
Real Estate Product SpecialistWorked on real estate product development for Credit Suisse Asset Management Relevant experience with Macquarie and Brookfield in SydneyExperience: 15 years
Fabian Linke
Real Estate Product SpecialistWorked in Credit Suisse Asset Management real estate strategies and advisoryRelevant experience at Swiss Finance & Property and Swiss Prime Site Experience: 15 years
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Source: Credit SuisseData as of Q2 20201 Weighted average unexpired lease term. Note: These investment examples are for illustrative purposes only.Historical performance data and financial market scenarios are not reliable indicators of future performance.
CSA 2 Multi-Manager Real Estate GlobalExemplary case study – Dutch residential fund
Target fund
Investment strategy
Country
Sector
Type
Core
The Netherlands
Residential
Open-ended
Key metrics
Fund size (GAV)
Number of assets
Leverage
Occupancy
WALE1
EUR 2.1bn
108
0%
98.1%
n/a
Investment strategy
The fund follows a transparent investment strategy focused on prime residential assets in the Netherlands with attractive risk-adjusted income profiles. The fund targets the mid-priced segment with low risk tenant groups.
78%
20%
2%
Maisonettes &Apartments
Single FamilyDwellings
Other
Investment highlights
Unique secondary market opportunity to gain immediate exposure to an attractive market without paying a premium in a 0%-leverage fund. This fund will not be investable through the primary market until 2020 at least.
12.9% net total return achieved in 2019.
The Dutch residential market benefits from the recovery of Dutch economy and housing market as well as from new legislation that is likely to have a positive impact on the non-regulated residential real estate sector.
Amsterdam, Netherlands
Sector Allocation
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CSA 2 Multi-Manager Real Estate GlobalExemplary case study – US residential fund
Source: Credit SuisseData as of Q2 20201 Weighted average unexpired lease term.2 These forecasts are no reliable indicators for future performance.Note: These investment examples are for illustrative purposes only.Historical performance data and financial market scenarios are not reliable indicators of future performance.
Target fund
Investment strategy
Country
Sectors
Type
Value add
USA
Residential
Closed-ended
Key metrics
Fund size (GAV)
Number of assets
Leverage
Occupancy
WALE1
USD 389 million
7
56%
91%
n/a
Investment strategy
The fund is buying and renovating existingmultifamily apartment properties built in the1990ies or early 2000s thereby achieving a rentpremium which in turn increases the value of theassets. The fund’s goal is to derive a high incomereturn and capital growth by selling the assets incoming approx. 5 -7 years.
37%
36%
14%
13%Mideast
Southwest
Southeast
West North Central
Investment highlights
Late primary investment in an established residential manager in the US
Benefited from an immediate net uplift after investing in the final close in excess of 16%
Target gross IRR of 15% - 17% High cash-on-cash and strong rental gap to class-
A properties mitigate the risk of upcoming supply. Employment, income and population growth in the respective submarkets are expected to drive demand and rents2
Houston (TX), USA
Geographic allocation
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16%
14%
11%
10%9%
9%
8%
7%
6%5%3%
2% EindhovenBarendrechtZwolleUtrechtAmsterdamBoxtelHeterenCuijkDeventerRotterdamZwolleAlphen a/d Rijn
CSA 2 Multi-Manager Real Estate GlobalExemplary case study – European light-industrial fund
Source: Credit SuisseData as of Q2 20201 Weighted average unexpired lease term.Note: These investment examples are for illustrative purposes only
Target fund
Investment strategy
Country
Sectors
Type
Core
Benelux, Germany
Light-industrial
Open-ended
Key metrics
Fund size (GAV)
Number of assets
Leverage
Occupancy
WALE1
EUR 97 million
15
30%
100%
8.3 years
Investment strategy
The fund acquires light-industrial, multi-let light industrial and small logistics properties at attractive initial yields predominantly in the Benelux countries and Germany. The manager enhances income through active asset management, tenant strategies and capex programs.
Investment highlights
Investing in a newly launched fund with an attractive existing seed portfolio
Ability to negotiate fund terms and take an active position in drafting the legal documents
Ensured casting vote on the investor advisory committee
Benefitting from an immediate valuation uplift at the initial close of the fund
Eindhoven, Netherlands
Geographic allocation
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CSA 2 Multi-Manager Real Estate Global Key facts
Source: Credit Suisse1Target return is based on a long-term investment time horizon. The target return is not a projection, prediction, or guarantee of future performance, and there is no certainty that the target return will be achieved.2 This is the current annual management fee. The maximum annual management fee is disclosed in the prospectus.
Share class Minimum investment volume Annual management fee2 Qualified investors
A CHF 1 million 0.70% Pension funds
L CHF 10 million 0.58% Pension funds
M CHF 20 million Mandate fee Pension funds
Product information
Investment strategy
Geography
Sectors
Launch date
Underlying currency
Currency hedging
Portfolio construction phase
Subscriptions
Redemptions
Sales commission
Anti dilution fee
Notice period
Target IRR (CHF) p.a.
Core plus
Global, except Switzerland (America, Europe, Asia Pacific)
Office, retail, residential, logistics, other
October 4, 2016
CHF
Foreign currency risk are most widely hedged in CHF
4 years
Capital commitments
Quarterly
None
2.0% (for the benefit of the investment group)
12 months
5–7 %1
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CSA 2 Multi-Manager Real Estate GlobalSubscription and redemption
Subscription Redemption
Issuance of shares by means of capital calls Capital calls are announced with a notice period of seven
days Issued at NAV at the end of the previous quarter No subscription fee is charged
The shares can be redeemed quarterly as at the end of a quarter, subject to a notice period of twelve months
A redemption fee of 2% is levied (remains in investment groups assets)
Capital call
Announcement (T-7 calendar
days)
Call(TD)
Announcement (T-7 calendar
days)
Call(TD)
Issued at NAV at the end of the
previous quarter
Capital commitment
Issued at NAV at the end of the
previous quarter
Capital call
Year n+1
Value date redemption (T+30 bank
working days)
Value date redemption (T+30 bank
working days)
Year n
Notice deadline Notice deadline Notice deadline
Redemption
End of quarter 4 End of quarter 1 End of quarter 2
Price determination
Price determination
Price determination
Notice
Redemption Redemption Redemption
End of quarter 1 End of quarter 2 End of quarter 3
End of quarter 1
End of quarter 1
Source: Credit SuisseFor illustration purposes
End of quarter 2
End of quarter 3
End of quarter 4
Notice Notice Notice
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CSA 2 Multi-Manager Real Estate GlobalReasons to invest
Source: Credit Suisse
Information advantage 580+ target funds screened Over 1’000 meetings and calls held with fund managers Global Credit Suisse platform Take active positions on the advisory boards of the target
funds
Due diligence capacities Reference calls Visit of fund management teams Internal background checks
Sourcing capabilities Various secondary market transactions Immediate performance uplift in excess of 16% Exclusive deal sourcing
Negotiation power Management fee discounts Lower the maximum leverage Privileged extension of the subscription deadline Introduction of a removal for cause provision
Structuring capabilities Seeding a new fund Prevent the conversion of a target fund Special Purpose Vehicle (SPV) Leading negotiations with tax authorities and apply for tax
rulings
Credit Suisse Credit Suisse Global Real Estate is the 4th largest real
estate investment manager in Europe Access to global network and expertise of Credit Suisse True multi-manager approach with no conflict of interest Core plus strategy with overweight's in the logistics and
residential sectors
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Contact information
1 Please note that telephone calls to our numbers may be recorded. We assume that, by calling us, you accept this business practice.
Sven Schaltegger MRICS, CFA, CAIALead Portfolio ManagerCSA 2 Multi-Manager Real Estate GlobalDirector, Indirect Real EstateKalandergasse 4 8045 ZurichSwitzerland
Phone +41 44 332 61 391
[email protected] www.credit-suisse.com
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Appendix
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Non-listed real estate fundsInvestment styles
Sources: INREV, Credit SuisseFor illustration purposes only
Investment style Core Core Plus Value Add Opportunistic
Risk Low to average Average Average to high High
Leverage (LTV) ≤ 40% 30% to 60% > 40% to 60/65% ≥ 65%
Occupancy level High> 90%
Well occupied 75% to 95%
Leasing potential60% to 80%
Turnaround0% to 70%
Target exposureto project developments
≤ 5% > 5% to ≤ 25% > 25%
Return composition Current income orientation Current income and capital appreciation
Capital appreciation and current income
Capital appreciation
Real estate type and location
Existing, stabilized properties Well tenanted, central and
stable income returns Long-term leases Strong tenant credit
Existing, stabilized properties Well tenanted, central, slight
deviations accepted Capital appreciation through
rental growth and/or modest lease up
Properties with upside potential realized through asset management Refurbishments, less centrally
located
Underutilized assets in need of major repositioning Development projects Less centrally located or in
emerging markets
Holding period Unlimited Unlimited Typically seven to ten years Typically five to eight years
Current income orientation Focus on capital appreciation
Risk HighLow
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Outlook on markets and regionsCOVID–19 crisis
Before start of Covid-19: structurally lower vacancies and lower construction volume
US and Australia show weak demand, Europe and Japan currently stable
Impact of home office to be seen in the medium-term
Generally negative impact of the recessionary environment on office rents
Popular markets: Japan UK The Netherlands and Germany
Risks / What to avoid? USA San Francisco, NY, Exposure
to commodity sector Insolvencies of various tenants, low
credit quality Long tenant contracts Pricing in London despite Brexit Co-working Provider with weak
balance sheets (e.g. Wework) Hong Kong, Tier 1 China ahead of
significant value correction
Before start of Covid-19: very dynamic demand from e-commerce (Amazon)
Increasing importance of e-commerce helps logistics to sail well through the current crisis
However, rent increases will be weaker in the future
Popular markets: USA and UK The Netherlands and Germany Eastern Europe
Risks / What to avoid? Big, old industrial buildings Exposure to global trade is a risk Already very aggressive pricing Supply risk in the greater Tokyo area
E-commerce leads to challenges for traditional retailers
Crisis in the US, Australia and the UK is accelerated through Covid-19
Also weaker demand expected in Continental Europe
Popular markets: Eastern Europe Emerging Asia Korea Japan
Risks / What to avoid? Recommended to underweight the
sector globally Growing cap rates in continental
Europe in 2020 Old retail concepts, second class
locations Oversupply in the UK and USA
Office Logistic Retail
Younger generation prefers renting vs. Buying
Structural market shifts and more restrictive access to mortgages increase the demand for rental flats
Population increase and migration as growth drivers
Popular markets: USA (especially sunbelt region) UK The Netherlands Japan
Risks / What to avoid? Cities exposed to tourism High rise in US inner cities Low initial yields in Europe Demographic developments in
Japan as long-term risk for residential properties outside Tokioand Osaka metropolitan regions
Berlin (political risk)
Residential
Source: Credit SuisseLast data point: August 2020
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CS (Lux) Multi-Manager Real Estate GlobalReal estate markets in the US – Q2 2020
Historical performance and financial market scenarios are not reliable indicators of future results.
Total return for investment properties in US versus previous quarterSpread between prime real estate and 10-year government bonds Global comparison of risk premiums for real estate investments Further outperformance for logistics properties in the US
The US office market weakened substantially in Q2/20, net absorption was negative with 8.4m sqft
The aggregated vacancy rate rose 80 bps and stood at 14.8% at the end of Q2/20 according to JLL. Continuously difficult leasing market expected for H2/20.
(Source: Credit Suisse)
Robust quarter. Online retail remains a market pillar. The vacancy rates rose only slightly by 0.3% to 4.8% and remains around a historical low
Rent growth accelerated and stood at 6.2% vs. Q2/2019
(Source: CBRE)
Challenging Q2/20 due to the Covid-19 lockdown
Continuous underperformance of the sector against the broader NCREIF Index in H2/20
(Source: Credit Suisse)
Starting to weaken, especially in NY and SF while the sunbelt markets continue to show a robust development
Growth of effective rents vs. previous year stood at 1.6% in Q2/20
(Source: Credit Suisse)
Sources: PMA, Credit Suisse Sources: Datastream, Credit Suisse
Office Logistic Retail Residential
-400
-200
0
200
400
600
Ber
lin
Fran
kfur
t
Par
is
Am
ster
dam
Lond
on
N.Y
.
Chi
cago
Toki
o
Sin
gapu
r
Syd
ney
Bris
bane
June 2020 Historic average 2001 - 2019 June 2007 (price high ahead of GFC)
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
All segments Office Retail Residential Logistics
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CS (Lux) Multi-Manager Real Estate GlobalReal estate markets in Europe – Q2 2020
Historical performance and financial market scenarios are not reliable indicators of future results.
Development of rentVacancy rate Lower vacancy rate in Europe despite economic weakness Price for office space in central districts (EUR, m2) remain unchanged
Until now, the European office market developed positively, despite the H1/20 recession
Small increase of vacancies by 20 bps to 5.8%. Positive rent growth of 2.8% vs. Q2/19. Expected weakening of the sector for H2/20
(Source: Credit Suisse)
Continuously robust market in continental Europe. Rents increased around 2% vs. Q2/19
Record of rental transactions in the UK in Q2/20. Underlying continuous potential of logistics markets
(Source: Credit Suisse)
Structural shift expected to continue, increasingly also on the continent due to Covid-19
Rising cap rates and declining rents expected. Vacancies continue to rise.
(Source: Credit Suisse)
Residential assets in Germany and the Netherlands continue to perform well. Solid demand despite weaker economic situation
Rents expected to stagnate or slightly increase in H2/20
(Source: Credit Suisse)
Sources: PMA, Credit Suisse Sources: RCA, Credit Suisse
Office Logistic Retail Residential
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CS (Lux) Multi-Manager Real Estate GlobalReal estate markets in Asia-Pacific – Q2 2020
Sources: CBRE, Credit Suisse Sources: PMA, Credit Suisse
Historical performance and financial market scenarios are not reliable indicators of future results.
Office prime rentsRents and capital market values Aggregated for APAC, Q2/20 YoY Comparison of vacancy rates and office rents
Office Logistic and Retail Residential
Transaction volumes in APAC were 22% lower than in Q2/19. Travel restrictions continue to impact transaction volume
Cap rates remain stable in Japan and Australia. Increase of cap rates in China / Hong Kong
(Source: Credit Suisse)
The situation for retail space also continued to deteriorate in Asia. Rents are under downward pressure in Hong Kong and Australia.
Despite concerns about the economy demand for logistics space remained stable, and we continue to observe rising rents in this sector.
(Source: Credit Suisse)
Weakening economy started to impact the Australian office market in Q2/20. Declining rents and increasing vacancies. However, strongest decline in Hong Kong due to political situation.
Japan and Korea with robust development in H1/20. Rents increased in Tokyo and Seoul by 2.6% and 2.3% respectively vs. Q2/19
(Source: Credit Suisse)
Beijing
Shanghai
Hong Kong
TokyoSeoul
SingapurSydney
Melbourne
-16-14-12-10-8-6-4-2024
0 5 10 15 20 25
Ren
tcha
nge
Q2/
20 v
s. Q
2/19
Office vacancy rate in %
-15,00%
-10,00%
-5,00%
0,00%
5,00%
Office Retail Logistics
Rents Capital market values
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95
100
105
110
115
120
125
130
Cum
ulat
ive
retu
rn (
inde
xed)
CSA 2 Multi-Manager Real Estate Global S CHF Net
CSA 2 Multi-Manager Real Estate Global SPerformance overview
Source: Credit SuisseData as of 30.06.2020Historical performance data and financial market scenarios are not reliable indicators of future performance.
1. quarter 2. quarter 3. quarter 4. quarternet Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec annual2016 – – – – – – – – – – – 3.23% 3.23%2017 – – 0.23% – – 0.36% – – 1.64% – – 3.39% 5.70%2018 – – 1.11% – – 2.12% – – 1.77% – – 2.45% 7.66%2019 – – 1.34% – – 1.06% – – 1.83% – – 2.69% 7.08%2020 – – 0.52% – – -1.22% -0.70% (YTD)Since 04.10.2016 (annualized) 6.13%
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CSA 2 Multi-Manager Real Estate Global MPerformance overview
Source: Credit SuisseData as of 30.06.2020Historical performance data and financial market scenarios are not reliable indicators of future performance.
1. quarter 2. quarter 3. quarter 4. quarternet Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec annual2016 – – – – – – – – – – – 3.38% 3.38%2017 – – 0.42% – – 0.51% – – 2.16% – – 3.75% 6.97%2018 – – 1.41% – – 2.55% – – 1.91% – – 2.79% 8.95%2019 – – 1.47% – – 1.23% – – 1.98% – – 2.92% 7.81%2020 – – 0.67% – – -1.09% -0.43% (YTD)Since 04.10.2016 (annualized) 7.12%
95
100
105
110
115
120
125
130
135
Cum
ulat
ive
retu
rn (
inde
xed)
CSA 2 Multi-Manager Real Estate Global M CHF Net
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CSA 2 Multi-Manager Real Estate GlobalGlobal network and local expertise
All invested target funds combined have over 8,700 employees in the real estate sector,
of whom more than 3,400 are real estate investment experts
> 1’900
> 1’000
Source: Credit SuisseAll information as at 31.12.2019
America
Europe
> 500
Asia/Pacific
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Investment rationaleInternational real estate investment segment
Direct/indirect investments in real
estate
Traded/non-traded investment
vehicles
Focus of CSA 2Multi-Manager
Real Estate Global
Investments in international real estate may be made directly or indirectly. Whereas direct real estate investments are made either directly in individual properties or via property
companies, indirect investments are made via investment vehicles such as funds and similar structures.
In addition to publicly traded indirect securities with real estate investments (listed), there is a broad range of non-traded investment vehicles (non-listed) abroad.
These differ from publicly traded securities not only in their legal form, but also in terms of liquidity and volatility.
Non-traded investment vehicles generally have lower volatility and a lower correlation to equity markets, but have lower liquidity as they are non-transferable or transferable only to a limited extent.
Source: Credit SuisseFor illustration purposes only
Direct
Non-listed real estate funds Listed real estate funds
Liquidity/volatilityLower Higher
Indirect
International real estate
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Source: Credit SuisseData as of Q2/20
> CHF 1.5 bn in fund commitments since 2016
> 1000fund manager meetings/calls
> 135 reference calls
> 1,000opportunities in the investment universe
> 580opportunities screened since Q3 2016
30opportunities closed
Americas > 170 opportunities
Europe > 290 opportunities
APAC > 90 opportunities
Americas 10 opportunities
Europe 15 opportunities
APAC 5 opportunities
Globally diversified portfoliowith over 3’500 underlying properties
Closed
Screened
Universe
Multi-Manager Real Estate platformHighly selective screening process
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Leading real estate platform with a global presenceCredit Suisse Asset Management Global Real Estate at a glance
Number 1in Switzerland
Sources: ANREV/INREV/NCREIF Fund Manager Survey 2019, Credit SuisseLast data point: December 31, 20191 Includes assets under management in direct and indirect investment vehicles, with indirect investment vehicles being managed by the Credit Suisse Asset Management Equities business.
30 listed and unlistedproducts and mandates
Over 1,300 properties
in 14 countries
CHF 68.6 bn in AuMCHF 51.6 bn in direct investment vehicles1
New York
São Paulo
Zurich
London
Frankfurt
MilanLausanne
Singapore
Cities where real estate is owned
Locations of Credit Suisse Asset Management Global Real Estate
Location of Credit Suisse Hedging-Griffo
Top 20globally
Top 3in Europe
A track record in real estate management
since 1938
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SvenSchalteggerMRICS, CFA, CAIA
Sven Schaltegger, Director, is Senior Portfolio Manager in the Indirect Real Estate team. He holds a master’s degree in finance with "magna cum laude" distinction from the University of Zurich and is a CFA charter holder, CAIA charter holder, and a member of the Royal Institution of Chartered Surveyors (MRICS). Before he joined Credit Suisse in 2016, he was a senior manager and head of real estate M&A at PricewaterhouseCoopers Switzerland. Prior to that, he worked at SCM Strategic Capital Management (now Mercer Private Markets) and Partners Group (PG) as a real estate investment manager. At PG, he was a member of the investment committee for a listed real estate fund. After completing his studies, Sven Schaltegger was first employed at UBS Global Asset Management, where he worked in global real estate product development and management in Zurich, and later as a Junior Portfolio Manager of a Core plus fund with UBS Realty Investors in Hartford, Connecticut, US.
FilippoRimaCFA
Filippo Rima is Managing Director of the Private Banking & Wealth Management division in Zurich. He is Head of Equities in the Asset Management business. Filippo Rima joined Credit Suisse Asset Management in September 2005 from Winterthur Asset Management, where he was a senior portfolio manager on the equity team. Prior to that, he worked at a private Swiss bank for four years as an equity analyst. Filippo Rima holds a degree in business administration from the University of St. Gallen (HSG) and a degree in civil engineering from the Swiss Federal Institute of Technology (ETH) in Zurich. He is a CFA charter holder and a member of the Index Commission of the SIX Swiss Exchange.
Professor John Davidson began his career as a member of the Alternative Funds Advisory private equity team for UBS Global Asset Management in Zurich, where he served until 2005. After that, he joined Swiss Re, where he was one of the chief architects of a global portfolio of indirect real estate investments with 27 institutional real estate funds and a volume of CHF 1.4 billion. Major activities included selection of funds, due diligence coordination and portfolio management, as well as representing Swiss Re on respective advisory boards. Since the fall of 2009, Professor John Davidson has been Co-Head of Real Estate at the Lucerne University of Applied Sciences and Arts.
John DavidsonProfessor Dr. oec. publ., CAIA
Christoph Bieri, Director, is Head of the Indirect Real Estate team. He studied business administration and economics at the University of Bern, qualified as a Certified International Investment Analyst (CIIA) at the Swiss Training Centre for Investment Professionals (AZEK) and in 1988 earned a certificate of proficiency for real estate fiduciaries. After working on a construction statistics project for the Swiss Federal Statistical Office for three years, Christoph joined Zürcher Kantonalbank in 1994 as a financial analyst for the banking and real estate sectors and was a member of the structured Swiss equity mandate team. In 1999, he started working at Banca del Gottardo, where he was responsible for setting up the Swiss equity research team. Christoph joined Credit Suisse in 2002 as a Portfolio Manager, where he set up the Indirect Real Estate product group he continues to manage.
ChristophBieriCEFA
CSA 2 Multi-Manager Real Estate GlobalInvestment Committee
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CSA 2 Multi-Manager Real Estate GlobalExpert Board
Heinz TschaboldCAIA
Heinz Tschabold, Director, is a Senior Portfolio Manager in the Real Estate Securities team. He graduated in Business Administration from the University of St. Gallen (HSG) and has a master’s degree in finance. Following his academic studies, he worked as financial analyst at UBS Warburg and assisted Swiss companies in the machinery and electrical engineering fields. In 2002, he joined Credit Suisse and was responsible for implementing quantitative models in the real estate sector. Since 2006, he has been responsible for mandates in the area of international real estate investments. As portfolio manager of the Credit Suisse (Lux) European Property Equity Fund, he is also responsible for the selection of companies and funds from German-speaking markets.
Werner Richli, Director, is a Senior Portfolio Manager in the Indirect Real Estate team. He graduated in business administration from the University of Zurich and is a Certified Financial Analyst and Asset Manager (TCIP). From 1987, he worked as a financial analyst in Credit Suisse Investment Banking and assisted various companies such as Kaba, Swisscom, Geberit, and Swiss Prime Site with their initial public offerings. In 2003, he joined Credit Suisse Asset Management. There, he developed real estate research and was responsible for the asset allocation of the first real estate fund investing internationally, Real Estate Fund International. This was followed in 2006 by the development of the mandate business for international real estate investment and the management of the Credit Suisse (Lux) Infrastructure Equity Fund.
Werner RichliCEFA
JohnDavidsonProfessor Dr. oec. publ., CAIA
ChristophBieriCEFA
Filippo RimaCFA
SvenSchalteggerMRICS, CFA, CAIA
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CSA 2 Multi-Manager Real Estate GlobalPortfolio Management (1/2)
SvenSchalteggerMRICS, CFA, Lead Portfolio Manager
HeinzTschaboldCAIA
Fabian Egg
Fabian Egg, Assistant Vice President, has worked in the Indirect Real Estate team since 2019. He graduated with a first class honors degree in management studies (BSc) from the London School of Economics and initially worked for Goldman Sachs in London, focusing on the acquisition and asset management of Pan-European Real Estate and Distressed Debt. During his three years at Goldman Sachs, he also worked for the Mortgage Trading team in New York and Dallas, gaining experience in the American market.
Philip SignerCFA
Philip Signer, Assistant Vice President, is an investment professional in the Indirect Real Estate team. He holds a master’s degree in banking and finance from the University of St. Gallen (HSG), complemented by studies at the Seoul National University (SNU) in South Korea, and is a CFA Charterholder. Before joining Credit Suisse in 2015, Philip worked in Investment Management at Zurich Insurance Group as an Investment Performance Analyst. He then joined Credit Suisse, working in Advisory Portfolio Management in the Investment Solutions and Products area, and was responsible for the construction and optimization of multi-asset-class portfolios for advisory clients.
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Marcel Kaufmann, Director, screens and selects real estate funds in the Indirect Real Estate team. He holds a master’s degree in strategy and organization from the University of St. Gallen and studied at SNU Seoul National University on the MBC program. He was a partner at Advanta Capital, a private equity advisory company that he co-founded, built up and sold. Before that, he worked as a private markets investment professional for SCM Strategic Capital Management (today Mercer Private Markets), Evolvence Capital (Dubai, UAE) and Swiss Re, where he was responsible for sourcing, evaluating and executing private equity, infrastructure and real estate transactions (primaries, secondaries, co-investments).
Fabian Stäbler, Director, is a Product Specialist in the Indirect Real Estate team and Business Manager in Asset Management Equities. He studied business engineering at the University of Applied Sciences and Arts NorthwesternSwitzerland (FHNW). Fabian joined Credit Suisse in 2009 and worked initially as Business and Project Manager in Asset Management Switzerland & EMEA in Zurich. After working in Asset Management in Hong Kong in 2011, he led the expansion of the Asset Management area in Singapore. In 2013, he became local COO for Asset Management in Singapore and was then responsible for supervising local activities, product and platform management as well as business and strategy development. Before joining Credit Suisse, Fabian worked for four years for Swiss Life Asset Management as a Business Process Engineer and Business Analyst.
Fabian Stäbler Marcel Kaufmann
CSA 2 Multi-Manager Real Estate GlobalPortfolio Management (2/2)
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CSA 2 Multi-Manager Real Estate GlobalYour contacts
Oliver SmithProduct Specialist
[email protected] Phone +41 44 332 25 97
Fabian LinkeProduct Specialist
[email protected] +41 44 334 25 74
Fabian Linke, Director, has 15 years of professional experience in the real estate business. He has been responsible for business development of international investing in real estate products managed from Zurich.
Fabian started his career at Credit Suisse as a banking intern in 2004. In 2006, he joined Credit Suisse Asset Management, where he was responsible for institutional distribution of collective investment vehicles including real estate solutions in Switzerland.
In 2008, he assumed responsibility for real estate strategies and advisory services at Credit Suisse Asset Management Global Real Estate. Up to 2015, he oversaw capital increases, IPOs, and initial issues worth over CHF 8 bn.
In 2015, he left Credit Suisse to go to Swiss Prime Site and then to Swiss Finance & Property Group before returning to Credit Suisse Global Real Estate as a Business Developer in 2018.
Fabian holds a BA in Banking and Finance from the ZHAW Zurich University of Applied Sciences and an MA in Real Estate from the University of Zurich.
Oliver Smith, Director, has 15 years of professional experience in the real estate business. He is a Product Specialist covering real estate for Credit Suisse Asset Management.
Oliver joined Credit Suisse Asset Management in 2018, initially working in the Product Development and Management team covering the Global Real Estate franchise. In that role, he had a broad remit encompassing all new and existing real estate funds.
His prior real estate experience includes real estate advisory at PricewaterhouseCoopers in Munich and Zurich, real estate investing and business development at Brookfield Asset Management in Sydney, and real estate investment banking and unlisted capital raisings at Macquarie Capital in Sydney.
Oliver holds a Bachelor of Actuarial Studies and a Bachelor of Laws from Australian National University. He has strong experience in real estate investment, business development, capital raisings, and advisory.
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Source: Credit Suisse, otherwise specified.Unless noted otherwise, all illustrations in this document were produced by Credit Suisse Group AG and/or its affiliates with the greatest of care and to the best of its knowledge and belief.
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. The information provided herein 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. CS provides no guarantee with regard to the content and completeness of the information and where legally possible 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 any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor 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 with respect to the construction of buildings and environmental risks (e.g., land contamination). CS Real Estate SICAV - SIF I - CSA 2 Multi-Manager Real Estate Global: This fund is not registered in Switzerland. They may only be sold to qualified investors pursuant to art. 10 paras. 3 to 4 of the Federal Collective Investment Schemes Act (CISA). The representative in Switzerland is Credit Suisse Funds AG, Zurich. The paying agent in Switzerland is Credit Suisse (Switzerland) Ltd.Copyright © 2020 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.
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