The new Credit Suisse Real Estate Fund Green Property is the first real estate fund in Switzerland to invest in Swiss real estate projects and properties that meet sustainability and energy efficiency criteria. Sustainability is measured according to five defined criteria and is reviewed by independent experts. Only qualifying investors will be able to participate in the fund's first issue, between May 15 and May 29, 2009.
The Credit Suisse Real Estate Fund Green Property (CS REF Green Property) is the first Swiss real estate fund to invest in properties that meet sustainability criteria. The selected projects and buildings are for the most part located in economically strong and urban locations in Switzerland and must fulfill the strict requirements of the new greenproperty seal of approval. This measures the sustainability of an investment according to five criteria: energy, materials, usage, infrastructure and life-cycle.
The greenproperty seal was developed by Credit Suisse Real Estate Asset Management in collaboration with Amstein + Walthert, a Zurich-based engineering and design practice. It is the first sustainability rating offering an all-inclusive assessment and qualification for property. The greenproperty seal not only covers ecology criteria, but also includes economic and social aspects. Property is assessed by independent appraisers certified by the Swiss Financial Markets Supervisory Authority (FINMA). Buildings approved under the scheme are subjected to an annual check.
"The CS REF Green Property fund issues a strong signal for a more eco-friendly and socially responsible world. It will offer investors a sustainable, attractive investment and considerable added value," states Thomas Vonaesch, Head of Real Estate Fund Management at Credit Suisse.
Tax Advantages - Public Offering Anticipated
The first issue of the fund, amounting to approx. CHF 300 million, will be limited to qualifying investors, including institutional investors with a professional treasury, banks, brokerages, and wealthy individuals. The minimum subscription will be 1,000 units corresponding to an investment of CHF 100,000. As CS REF Green Property is the direct owner of the properties, earnings distributions derived from direct ownership are not subject to income or corporate income tax for qualifying investors domiciled in Switzerland. Similarly, the value of fund units pertaining to direct property ownership is not subject to wealth or capital tax. The real estate fund is suitable for investors with a mid- to long-term investment horizon who appreciate the benefits of solid, tangible assets and wish to participate in the capital markets.
The subscription period for the first issue runs from April 15 - 29, 2009. The units, to be paid for in three tranches, can be traded over the counter by Credit Suisse after payment of the third and final amount. It is planned to open the CS REF Green Property fund to public investors within five years and to list it on the Swiss exchange.
Source: Credit Suisse