The new issue of Credit Suisse Real Estate Fund International (CS REF International), which ran from December 1, 2004 through January 14, 2005, met with exceptionally high interest, with the result that the originally targeted issue volume of CHF 500 million was substantially oversubscribed.
The issue value for the first Swiss fund investing in international real estate was fixed at CHF 585 million. This volume will allow the fund to make investments totaling some CHF 1.0 billion, including borrowed capital, in an initial phase.
CS REF International acquires quality commercial real estate in selected European and North American markets. It also intends investing in the Asia-Pacific region at a later date. CS REF International is the first Swiss real estate fund offering institutional investors the opportunity to participate in a portfolio of international real estate, thereby optimizing the risk/return profile of their total assets. As the fund will hedge most of its currency risk, it will not have significant exposure to currency fluctuations.
This new real estate fund, in which more than 230 institutional investors have invested at least CHF 100,000 each, focuses its investments on markets with potentially high economic growth in politically stable countries. Specifically, the fund seeks to invest in quality commercial properties offering very flexible use, a high rental level, and sustainable income potential.
Source: Credit Suisse