CSAM, the global fund management group, is to host a series of Pan-European briefings for fund distributors and institutional clients to promote the strategic opportunity of investing in some of EuropeÂ's leading real estate companies.
Credit Suisse Asset Management (CSAM), the global fund management group, is to host a series of Pan-European briefings for fund distributors and institutional clients to promote the strategic opportunity of investing in some of EuropeÂ's leading real estate companies.
CSAM, one of the largest commercial property managers in Europe with over EUR 6 billion in property assets, will highlight the fact that the value of European Real Estate share prices as measured by the EPRA (European Public Real Estate Agent) Index has outperformed the MSCI Europe Index by over 30% during the first three quarters of 2002.
'The principal advantage of European real estate stocks is their capacity to generate stable income through long term lease agreements' comments FrÃ©dÃ©ric Mathier, Portfolio Manager of the Credit Suisse Equity Fund (Lux) European Property, which invests in leading European property firms.
European real estate traditionally has a low correlation to more traditional asset classes, and Mr Mathier believes investment in this part of the real estate sector can help provide useful diversification in a balanced portfolio, particularly in volatile times.
'Another factor is that many real estate companies are currently trading at seemingly overstated discounts to the net asset value, so there is a real growth potential in this sector', said Mr Mathier. 'This growth potential is supported by historically low interest rates across Europe and a relatively low level of supply in the market. '
According to Mr MathierÂ's research, the window for investing in the office sector in European property has passed for the time being, but the market for retail property, particularly in France and Germany, remains positive with rising rental returns, said Mr Mathier. 'These stocks are particularly attractive in respect of their dividends. In the UK dividend returns are about 3.5% and on the continent about 4.5% yield.'
The roadshow will make stops in Milan, Paris, Madrid, Amsterdam and Oslo.
(source: Credit Suisse Asset Management)