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Conversion of Credit Suisse Real Estate Fund International into an NAV-based product under review

Credit Suisse Funds AG is reviewing the potential conversion of the Credit Suisse Real Estate Fund International (CS REF International, securities no. 1968511) into an NAV-based product. As a result, over-the-counter (OTC) trading would cease and the intermediation of fund units would be introduced at the same time.

New product structure aligned with client needs
The fund management company plans to convert the CS REF International into an NAV-based product to accommodate existing client needs. This move is subject to the approval of all internal bodies and the Swiss Financial Market Supervisory Authority FINMA. Implementation is planned for 2023. Current OTC trading would be replaced by the intermediation of fund units to investors and future investors. Further information will follow at the latest in March 2023 with the publication of the 2022 financial statements.

Well-diversified real estate portfolio with major leasing deals
The CS REF International is well diversified with 54 properties in 11 countries worldwide. Although the fund pursues a low-risk core/core+ strategy, it is not immune to the prevailing difficult conditions in global real estate markets. Nevertheless, 2022 was a pleasing year for the fund in terms of leasing. Recent major leasing deals involving tenants with excellent credit ratings in Frankfurt (8,800 m2) and Seattle (8,200 m2) are testimony to the quality of the portfolio.

The majority of lease agreements are indexed or have predefined rent increases. As a result, the portfolio offers partial protection against inflation. The real estate portfolio has been further rejuvenated this year following completion of the new "Jubilee Place" building in Brisbane, Australia, and the total refurbishment of the "Dockline" property in Dublin, Ireland. Tenants have already signed up for a large percentage of both properties, which meet the highest sustainability standards in their respective countries. Furthermore, in March 2022, the fund successfully sold three properties in Chile that were no longer aligned with the portfolio’s strategy.

The CS REF International participated in the GRESB global sustainability benchmarking, achieving four out of a possible five stars. With a score of 81 points, the fund outperformed both the peer group (77 points) and the average of all participants (74 points).