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Credit Suisse Real Estate Fund
LogisticsPlus
February 2017
Real Estate Investment Management
Switzerland: Only available to qualified investors pursuant to Art. 10 CISA and Art. 6 CISO
Capital Increase
Credit Suisse Real Estate Fund LogisticsPlus Key Facts
Real Estate Investment Management 2
Capital increase from 27th of February till 10th
of March 2017.
The proceeds of the issue will be used for further
expansion of the portfolio as well as for the reduction of debt capital in the short term.
Ongoing projects, purchases, and intended
purchases amounting to CHF 374 million and an average gross yield of 5.4%.
Planned issue will be carried out based on the
best-effort method.
February 2017
Credit Suisse Real Estate Fund LogisticsPlus Use of the Proceeds of the Issue and Advantages for Investors
Attractive yield
potential
Diversification
Future of logistics
market
Repayment of debt
capital
Capital requirements
for portfolio
expansion
The target is to achieve a direct yield of 4%1.
Only product for logistics and logistics-related real estate in Switzerland – diversification of existing real estate portfolios.
The importance of logistics services is constantly increasing due to globalized goods flows.
Short-term repayment of debt capital and ensuring sound capital base for further portfolio construction.
The well-filled pipeline of properties/projects as well as ongoing projects within the existing portfolio result in future capital commitments.
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Source: Credit Suisse AG
February 2017
1 Target return is not a projection, forecast, or guarantee of future performance, or of achievement of such.
Credit Suisse Real Estate Fund LogisticsPlus
Key Figures on the Capital Increase
Real Estate Investment Management
Type of issue Best-effort issue with subscription rights trading
Subscription period 27.02 – 10.03.2017, 12:00 p.m. (CET)
Subscription rights trading 27.02 – 08.03.2017
Payment of securities subscribed 17.03.2017
Issue price CHF 103.00 net per share certificate
Subscription ratio 2:1 (two existing share certificates to one new one)
Target volume CHF 103 million
Issuing commission 1.5% of NAV (included in the issue price)
Fund unit identifier Swiss security number: 24 563 395 ISIN: CH024 563 395 0
Subscription rights identifier Swiss security number: : 35 395 544
ISIN: CH035 395 544 3
4
Source: Credit Suisse AG
February 2017
Credit Suisse Real Estate Fund LogisticsPlus Portfolio Expansion
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Source: Credit Suisse AG
Region Property/project Use Volume GY Entry/constr.
Northwest CH Project Production/logistics CHF 15 mn 5.2% 2017-2018
Northwest CH Project Logistics CHF 50 mn 5.5% 2017-2018
Bern Property Production/logistics CHF 20 mn 5.5% April 2017
Bern Project Logistics CHF 20 mn 4.5% 2017-2018
Western CH Object Logistics CHF 20 mn 6.0% April 2017
Western CH Project Logistics CHF 90 mn 5.3% 2017-2018
Zurich Project Logistics/commercial CHF 80 mn 5.0% 2017-2018
Intended Purchases
Ongoing Projects and Purchase Commitments
Place Property/project Use Volume GY Entry/constr.
Derendingen New build project Distribution center CHF 45 mn 6.0% Summer 2017
Root Portfolio expansion Production/logistics CHF 4 mn 5.0% Summer 2017
Lenzburg Property Distribution center CHF 30 mn 6.0% April 2017
Total CHF 374 mn 5.4% 2017-2018
February 2017
Credit Suisse Real Estate Fund LogisticsPlus New Build Project within the Fund's Net Assets
Derendingen/Luterbach – logistics site
Surface area: 100,400 m2 Existing building constructed 1992–1994 New build project for completion summer 2017
Rental income incl. new build: CHF 5.2 million
Investment costs, including new build: CHF 86 million
Gross yield incl. new build: 6.0%
Primary tenant: DHL Logistics (Schweiz) AG with rental contract until 2027
February 2017 Real Estate Investment Management 6
Credit Suisse Real Estate Fund LogisticsPlus Purchase Commitment
Lenzburg – distribution center
Surface area: 19,800 m2 Year of construction: logistics center 2002 / offices 2004
Rented area: 11,000m2
Rental income: CHF 1.8 million Purchase price: CHF 29.7 million
Gross yield: 6.0%
Primary tenant: Office Depot GmbH with rental contract until 2026
February 2017 Real Estate Investment Management 7
Credit Suisse Real Estate Fund
LogisticsPlus
February 2017
Real Estate Investment Management
Switzerland: Only available to qualified investors pursuant to Art. 10 CISA and Art. 6 CISO
Fund Profile and Portfolio
Yields on logistics real estate are around 1% higher than for core real estate investments.
Logistics services are growing steadily as a result
of globalized goods flows.
There is continued demand for logistics space. Logistics properties are particularly suitable for
risk diversification.
February 2017 Real Estate Investment Management
Credit Suisse Real Estate Fund LogisticsPlus Investment in Logistics Real Estate
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Sources: IPD, Wüest Partner
Credit Suisse Real Estate Fund LogisticsPlus Basic Information and Product Features
First logistics real estate fund in Switzerland
for qualified investors – launched September 2014.
Over-the-counter trading through Credit Suisse (Switzerland) Ltd., Zurich.
Direct ownership of properties affords tax
advantages – income and capital gains from the fund's directly owned property are tax-exempt for unitholders.
Real Estate Investment Management 10 February 2017
Credit Suisse Real Estate Fund LogisticsPlus Asset Categories
Types of logistics real estate - transshipment - warehousing
- distribution
- others, e.g. high-bay warehouses, cold storage,
hazardous materials storage
Additional real estate categories - Production properties in the light industrial field - Multi-functional buildings housing production,
sales and logistics operations
Real Estate Investment Management 11 February 2017
The term logistics covers not only traditional T&L activities but also order and dispatch as well
as supply chain and inventory management tasks.
In Switzerland, logistics plays an important role
for the export industry and suppliers.
The volume of the logistics market in Switzerland is estimated at CHF 39.3 billion for
2016 (slight growth of 1.1%).
February 2017 Real Estate Investment Management 12
Sources: GS1 Schweiz, HSG
Credit Suisse Real Estate Fund LogisticsPlus Logistics Market
Functions of logistics real estate
Used for the storage, handling, commissioning,
and refining of goods and commodities.
The main sites are found in urban centers, around traffic hubs and in locations close to the
border.
The building volume in Switzerland is estimated at 130 million m3.
The transaction volume for logistics real estate in Switzerland is CHF 300 – 500 million annually.
A trend from owner-occupier market to investor
market is under way.
February 2017 Real Estate Investment Management 13
Sources: GVA, Wüest Partner
Credit Suisse Real Estate Fund LogisticsPlus Logistics Real Estate Market
Urban logistics continuing to gain significance as a result of rising traffic density.
Sharp increase in e-commerce with increased client expectations for service provision.
Digitalization and Industry 4.0 are leading to changes in supply chains and the necessary infrastructure.
Sustainability and flexibility are among the success factors for logistics real estate.
February 2017 Real Estate Investment Management
Credit Suisse Real Estate Fund LogisticsPlus Logistics Market – Trends and Developments
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Sources: GS1 Schweiz, HSG
Credit Suisse Real Estate Fund LogisticsPlus Key Figures
February 2017 Real Estate Investment Management
Semi-annual and annual report Sep. 30, 2015 Sep. 30, 2016
Net fund assets in CHF million 205.2 206.7
Market value of properties in CHF million 224.9 261.2
Premium/discount 9.67% 9.33%
Distribution per unit in CHF 3.40 3.80
Direct yield 3.02% 3.36
Payout ratio 89.98% 78.14%
Investment return 4.12% 4.19%
Debt financing ratio (in % of market value) 7.51% 13.15%
Fund's total expense ratio, GAV (TERREFGAV) 0.70% 0.70%
Fund's total expense ratio, market value (TERREFMV) 0.64% 0.72%
Rental loss rate 1.54% 0.83%
Source: Annual report issued by Credit Suisse REF LogisticsPlus
The performance data does not take into account the commissions and fees charged for the issue and redemption of units. Historical returns and financial market scenarios are no guarantee of current and future results. These figures have been calculated according to the "Key Figures for Real Estate Funds" specialist instruction from the Swiss Funds Association (SFA).
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February 2017 Real Estate Investment Management
Credit Suisse Real Estate Fund LogisticsPlus Concentration on Economic Centers
Northwest Switzerland 61.60%
Zurich 30.30%
Central Switzerland 5.40%
Bern 1.40%
Southern Switzerland 1.30%
Lake Geneva 0.00%
Western Switzerland 0.00%
Source: Annual report issued by Credit Suisse REF LogisticsPlus Last data point: Sep. 30, 2016
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Credit Suisse Real Estate Fund LogisticsPlus Diversification by Type of Use
February 2017 Real Estate Investment Management
Breakdown of useful floor area by net rental income
Source: Semi-annual and annual report of Credit Suisse REF LogisticsPlus Last data point: Sep. 30, 2016
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6.80%
77.45%
8.90%
4.65% 2.20%
Office
Logistics
Production
Other
Parking
Credit Suisse Real Estate Fund LogisticsPlus Sample Properties within the Fund's Net Assets
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Source: Credit Suisse AG
Orior portfolio -
5 production properties
Böckten BL, Oberentfelden AG,
Root LU, Stabio TI, Uetendorf BE Rental income: CHF 3.5 million
Market value: CHF 52.6 million
Gross yield: 6.6% Single tenant: Orior group
Rupperswil, Coop – distribution
center with rail link
Constructed 1972 Extended 1998
Rental income: CHF 3.2 million
Market value: CHF 52.6 million Gross yield: 6.0%
Single tenant: Coop
Bülach, Schützenmattstrasse –
logistics site with rail link
Various buildings, constructed 1963, 1966, 1980, 1993
Rental income: CHF 5.6 million
Market value: CHF 79.2 million Gross yield: 7.1%
Tenants: Various
Real Estate Investment Management Your Contacts
Radhia Rüttimann
Portfolio Manager
Director
Tel. +41 44 332 81 74
Do you have questions about the capital increase?
We can give you the answers.
Christian Braun, CIIA
Real Estate Strategies & Advisory
Vice President
Tel. +41 44 333 44 00
Real Estate Investment Management 19 February 2017
Credit Suisse Real Estate Fund
LogisticsPlus
Appendix
Real Estate Investment Management
February 2017
Credit Suisse Real Estate Fund LogisticsPlus Return Comparison of Asset Classes in Switzerland
February 2017 Real Estate Investment Management
Yield difference of ~100bp
Historical performance and financial market scenarios are not reliable indicators of current or future performance. The performance data takes no account of commissions, fees or other charges (including commissions and costs associated with the issue and redemption of units).
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Sources: IPD, Wüest Partner,
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Industrial/logistics All sectors Retail space Office space Residential
Income return in %
Credit Suisse Real Estate Fund LogisticsPlus E-Commerce
February 2017 Real Estate Investment Management
0.0%
1.5%
3.0%
4.5%
6.0%
7.5%
9.0%
10.5%
12.0%
100
110
120
130
140
150
160
170
2008 2009 2010 2011 2012 2013 2014 2015 2020
Anteil Onlinehandel am gesamten Detailhandel
Total retailing, index
E-commerce and mail-order, index
Sources: GfK, SAAM, Coop, Migros Cooperative
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Share online trading
Disclaimer
This document was produced by Credit Suisse AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. However, CS provides no guarantee with regard to its content and completeness and does not accept any liability for losses that might arise from making use of this information. The opinions expressed in this document are those of CS at the time of writing and are subject to change at any time and without notice. Unless otherwise indicated, all figures are unaudited. This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. The recipient is in particular advised to ensure that the information is in line with his/her own circumstances with regard to any legal, regulatory, tax, or other consequences, if necessary with the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of CS. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted to access such information under local law. Neither this document nor copies thereof may be sent to, taken into, or distributed in the United States or to any US person (as defined in Regulation S of the US Securities Act of 1933 in its currently valid version). Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor’s reference currency. Historical performance indications and financial market scenarios are no guarantee for current or future performance. The performance data does not take into account the commissions and fees charged for the issuance and redemption of units. Furthermore, there is no guarantee that performance will reach or exceed the benchmark index.
Major real estate fund risks include limited liquidity of the real estate market, changes in mortgage interest rates, subjective real estate valuation, the risks inherent in property construction, and environmental risks (such as contaminated sites).
The Credit Suisse Real Estate Fund LogisticsPlus was established in Switzerland. The investor base is limited to qualified investors as defined by Art. 10, paragraph 3 and 4 CISA in conjunction with Art. 6 and 6a CISO. The fund management company is Credit Suisse Funds AG, Zurich. The custodian bank is Credit Suisse AG, Zurich. Subscriptions are only valid on the basis of the current sales prospectus and the most recent annual report (or semi-annual report, if more recent). The prospectus, fund contract, and the annual and semi-annual reports are available free of charge from Credit Suisse Asset Management Funds AG, Zurich, and from all Credit Suisse AG banks in Switzerland.
Copyright © 2017 Credit Suisse Group AG and/or its affiliates. All rights reserved.
Real Estate Investment Management 23 Februar / März 2017