Better performance. Sustainably.
"Green" operation of real estate generates added value compared to conventional properties. Global Real Estate of Credit Suisse Asset Management has taken a leading role in this field globally with the first climate-neutral real estate fund, CS (Lux) European Core Property Fund Plus.
In the field of real estate, tenants, investors and the broader public are increasingly giving the subject of sustainability more attention. The fact is that the value of real estate is stable and this asset class largely develops independently of other asset classes. Hence, real estate is particularly interesting for institutional investors, where it serves to stabilize the portfolio.
In addition to conventional investment criteria, such as profitability and security, sustainable real estate investments also satisfy environmental, social and governance (ESG) criteria. Sustainably managed real estate with high energy efficiency and minimized CO2 emissions not only protects the environment but also offers economic benefits. These benefits are manifested in lower operating costs, higher rents and sale proceeds, earnings and yields.
"Green" funds prosper
An increasing number of institutional investors are turning to this type of investment as the expected financial performance is consistent with the objectively determinable sustainability performance and, moreover, frequently coincides with the investor's own portfolio strategy. The enhanced performance of "green" real estate is also confirmed by current international studies. However, the choice of available, sustainable real estate funds is still meager. Nowadays, the focus of many builder-owners, when constructing a sustainable property, is primarily on the associated image enhancement and resulting improved attractiveness for rental. Not all stakeholders in the real estate sector are aware as yet that the sustainable management of a building is beneficial in the medium and long term, both for tenants and owners. The "Plus" in the CS (Lux) European Core Property Fund Plus reflects the strategic sustainability approach, which focuses on the sustainable management of a broadly diversified portfolio of commercially used real estate at economically sound locations in Europe.
Increase of energy efficiency
When developing the CS (Lux) European Core Property Fund Plus in 2015, Global Real Estate implemented essential features of sustainable real estate management in the value creation stages of real estate investments from the outset. In doing so, the company was able to draw on experience gained in Switzerland. In Siemens Schweiz AG, for example, we have a competent and Europe-wide partner for energy optimization at our side. Among other things, Siemens carries out a systematic analysis of the potential before a property is purchased to optimize the earnings potential of the real estate investments. Based on continuous monitoring and reporting, first optimization steps are subsequently initiated. In all cases, the objective is to reduce operating costs and gradually increase the earnings potential of each piece of real estate. At the same time, implementation of the optimization measures anticipates regulatory or macroeconomic, cost-related developments, such as energy pricing and CO2 taxes.
First climate-neutral fund
The innovative fund concept of CS (Lux) European Core Property Fund Plus has won Global Real Estate the prestigious Scope Sustainability Award. The fund is the first climate-neutral real estate fund to invest in contemporary commercial portfolio real estate in European markets. The fund pursues a conservative core/core plus real estate strategy. Revenues from predominantly medium- to long-term rental agreements generate a solid cash flow. Active asset management reduces both management fees and CO2 emissions. The remaining CO2 emissions are compensated through certificates.