CSA 2 Multi-Manager Real Estate Global€¦ · By actively managing the entire portfolio,...

CSA 2 Multi-Manager Real Estate GlobalAccess to Real Estate Funds worldwide

Switzerland: This product may only be distributed in or from Switzerland, to qualified investors as defined pursuant to the Collective Investment Schemes Act (“CISA”).

Credit Suisse Asset Management (Switzerland) Ltd.Indirect Real EstateAugust 2020

August 2020Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer found at the end of this document also applies to this page. 2

CSA 2 Multi-Manager Real Estate GlobalAn investment group of the Credit Suisse investment foundation pillar 2

6.1%annualized return since

inception1 and

CHF 1’211mnet asset value

>3’500underlying properties

Core plustarget return2 of 5%-7%

(hedged in CHF)

92.5%weighted average occupancy across the underlying target

funds

5.8 yearsweighted average unexpired

lease term

25.3%leverage ratio

Source: Credit Suisse1 The investment return is based on share class S which is subject to the founding investor fee. The reported net investment return is calculated using the “Modified Dietz” method.2 The target return is the IRR in CHF after foreign currency hedging and is based on a long-term investment horizon. Target return is not a projection, prediction, or guarantee of future performance, and there is no certainty that the target return will be achieved.


119%

111%

100%100%

105%

110%

115%

120%

125%

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

cum

ulat

ive

perf

orm

ance

CSA 2 Multi-Manager Real Estate GlobalPerformance comparison as of Q2 2020

Source: Credit SuisseComparison of the following share classes:Competitor I: Management fee: 0.60% p.a., investment volume: CHF 10-30 millionCSA 2 MMREG: share class L, management fee: 0.58% p.a., investment volume: CHF 10-20 millionCompetitor II: Management fee: 0.60% p.a., investment volume: CHF <10 millionThe peer comparison is not exhaustive. Multi-Manager Real Estate products were selected as they are considered to be major competitors. There may be other Multi-Manager Real Estate products in the market that have not been included in this comparison. The peer comparison is not intended to compare all the characteristics of the selected Multi-Manager Real Estate products.

CSA 2 MMREG

Competitor I

Competitor II


Investment rationaleImportant reasons to invest

For many institutional investors, international real estate is still an underweighted asset classWhile around 58% of the investment volume in equities is invested internationally, the average for real estate is only around 13%.1

Added value through active managementAnalysis and navigation of the global non-listed real estate fund universe requires focused expertise and the maintenance of an extensive network of real estate fund managers and other fund managers. By actively managing the entire portfolio, significant added value can be achieved over individual, isolated investments.

Moderate volatility and low correlation with equitiesNon-traded/non-listed investment vehicles show significantly lower volatility than listed investment products and, in particular, have a lower correlation with equity markets.

Partial protection against inflationA long-term investor receives partial inflation protection with an investment in real estate assets, as rents automatically adjust to inflation in the medium term.

DiversificationReal estate investments can achieve good diversification with respect to existing investments, since the former have a low correlation with other asset classes such as equities and bonds.Within the international real estate segment, a high diversification effect is also achieved through different target funds, target fund managers, geographical criteria, sectors and risk profiles as well as investment timing.

Leading providerCredit Suisse Asset Management Indirect Real Estate is a trusted partner with focused expertise and institutional investment standards.

1 Source: Credit Suisse Swiss Pension Fund Index Q2 2020


Portfolio overviewAllocation based on invested capital in CHF (million)

Source: Credit SuisseData as of Q2 2020.The illustration shows the invested capital of the underlying target fund in CHF (million).

Diversified Office Residential

EuropeAmericas APAC

Logistics

Opportunistic

Value Add

Core

2 fundsCHF 114 mn

3 fundsCHF 200 mn

5 fundsCHF 253 mn

2 fundsCHF 175 mn

2 fundsCHF 110 mn

1 fundsCHF 82 mn

2 fundsCHF 30 mn

4 fundsCHF 72 mn

3 fundsCHF 70 mn1 fund

CHF 44 mn

2 fundsCHF 47 mn


CSA 2 Multi-Manager Real Estate GlobalPortfolio as of June 30, 2020 based on invested capital

Source: Credit Suisse* The allocation to "other" sectors mainly consists of exposure to medical offices, senior housing, self-storage and student housing. This is an indicative asset allocation that may change over time.

Sector allocation Allocation by investment style

26%

8%

23%

34%

9%1%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Office Retail Residential Logistics Others* Liquidity

43% 38%

18%

1%0%

20%

40%

60%

80%

Americas Europe Asia-Pacific Liquidity

Investment guidelines

Regional allocation Allocation by structure

85%

11%3%

1%

Core Value-added Opportunistic Liquidity

16%

83%

1%

Closed-end Open-end Liquidity

Investment guidelines Current allocation

Current allocation


Last 12 Months Since inception(04.10.16–30.06.20)

Net investment return in CHF(after management fees and hedging expenses)1

+6.13% p.a.(annualized)

(+7.98% in local currencies, -1.85%

hedging costs)

CSA 2 Multi-Manager Real Estate GlobalPortfolio as of June 30, 2020

Performance

Number of committed target funds 26

Number of underlying properties >3’500

Number of underlying tenants >10’000

Average occupancy of the underlying target funds 92.5%

Weighted average unexpired lease term 5.8 years

Weighed average debt maturity 5.1 years

Cash 1%

Leverage 25.3%2

Net asset value CHF 1’211m

Source: Credit Suisse1 The investment return is based on share class S which is subject to the founding investor fee. The reported net investment return is calculated using the “Modified Dietz” method.2 Leverage is based on the underlying target funds, while on a portfolio level, CSA2MMREG does not use any leverage.Historical performance data and financial market scenarios are not reliable indicators of future performance.

Highlights based on invested capital

Q2 2020-1.22%

Q1 20200.52%

Q4 20192.69%

Q3 20191.83%


CSA 2 Multi-Manager Real Estate GlobalDiversified investor base

46

33

20

32

7

138

-

200

400

600

800

1 000

1 200

1 400

0

20

40

60

80

100

120

140

160

<2.5m 2.5m -5m

5m -10m

10m -25m

>25m Total

Committed capital in CHF million (RHS) Number of investors (LHS)

Total investors: >130

Source: Credit Suisse


CSA 2 Multi-Manager Real Estate GlobalInvestment process

For illustrative purposes only.Source: Credit Suisse

Sourcing Due Diligence

Structuring Investment Committee

SubscriptionProcess

Monitoring/ Controlling

Information advantage Exclusive deal sourcing Global Credit Suisse platform Proprietary global network

Examples:− Proprietary due diligence questionnaire− >900 fund manager meetings/calls

Due diligence capacities Extensive commercial, legal and tax Due

Diligence Access to legal and tax experts Highly selective and rigorous, multi-phase

investment process

Examples:− On-site fund manager visits− Reference calls and background checks

Structuring capabilities Ensuring tax efficiency of the structure Implement strong legal control Best-in-class governance

Examples:− Negotiations with tax authorities for tax

rulings− Establish special purpose vehicles, if required

Negotiation power Onboarding, Know-Your-Client and Anti-

Money-Laundering procedures Bilateral agreement with General Partners Negotiate investor-friendly key terms

Examples:− Negotiate preferential fee terms− Benefiting from volume discount based on

CSAM’s overall investment platform

Experienced Investment Committee Strong track record Longstanding industry experience External investment committee member

Examples:− Four highly experienced IC members− Diverse background and knowhow

Investmentmonitoring Guideline compliance Handling capital calls &

distributions Performance

monitoringExamples− Leveraging tools of a

global bank− Proven processes


Source: www.gresb.com1 Based on Q2 2020 data or latest available GRESB rating2 Based on invested capital in Q2 2020

CSA 2 Multi-Manager Real Estate GlobalEnvironmental Social Governance (ESG) –integral part of the due diligence process

The selection of investments follows a structured, broad-based investment process that takes both quantitative and qualitative criteria into account.

Potential investment opportunities undergo a detailed due diligence process, taking ESG-related factors into account as part of the assessment.

The Global Real Estate Sustainability Benchmark (GRESB) is analyzed as the leading ESG rating for all new and existing target funds.

In addition, other common ESG standards, ratings and guidelines are analyzed at the building, fund and fund manager levels.

ESG in the investment

process

ESG profile CSA2

Multi Manager Real Estate

Global

CSA2 Multi Manager Real Estate Global – since 10/2016

GRESB 63%1 of the funds have a GRESB rating 84%2 of the invested capital has a GRESB rating 77/100 – weighted average (based on GRESB rated funds) 721) – average GRESB rating for all private real estate entities in 2019

Other ESG standards/ ratings/ programs Various ratings and standards like LEED, BREEAM, Energy Star, UNPRI, etc. Proprietary policies, standards and ESG reports of target funds

77

http://www.gresb.com/


Real estate for diversificationStable income yields

Historical performance indications financial market scenarios are not reliable indicators of current or future performance.

Correlation between different asset classes Non-listed real estate funds are a suitable addition to a diversified portfolio due to their low correlation with equities and bonds.

The risk profile of non-listed real estate investments lies between the ones of bonds and equities.

High international diversification for non-listed real estate investments due to low cross-border correlation.

Attractive and stable income yields over the cycle in the current zero/negative interest rate environment.

2000-2019 Equitiesglobal

Bonds global REITs global Non-listed global real estate

Equities global 1 –0.09 0.86 0.44

Bonds global 1 –0.11 –0.08

REITs global 1 0.52

Non-listed global real estate

1

Stable and substantial distribution componentMSCI IPD Global Real Estate Index (Asset Level)

Sources: MSCI, Credit Suisse; last data point: December 2019

7,1% 6,5%8,2%

10,8%

15,0% 14,5%

10,5%

-5,5%-7,3%

8,9% 8,9%7,0% 8,3%

9,9% 10,7%7,4% 7,9% 7,3% 6,5%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Dec2001

Dec2002

Dec2003

Dec2004

Dec2005

Dec2006

Dec2007

Dec2008

Dec2009

Dec2010

Dec2011

Dec2012

Dec2013

Dec2014

Dec2015

Dec2016

Dec2017

Dec2018

Dec2019

% p

.a.

Standing Investments Income Return Standing Investments Capital Growth Standing Investments Total Return


CSA 2 Multi-Manager Real Estate GlobalTaking advantage of a broad range of investment structures


Secondary market

Acquire fund units from existing investorsvia the secondary market.

Stakes may be acquired at a discount to NAV and/or allow for immediate deployment of capital.

Primary market

Investment in a target fund through a subscription process.

Investments in the final close of a closed-end target fund may potentially benefit from an immediate valuation uplift.

Joint and programmatic ventures

Invest in portfolios of assets exclusive to our clients alongside an experienced manager in a predefined strategy.

Fund formation

Helping a manager launch a new strategy by providing seed capital while benefiting from preferential terms.

Deal structures

Traditional investments

Bespoke investments


CSA 2 Multi-Manager Real Estate GlobalHighly qualified and experienced team

Investment Committee

Filippo RimaCFA, Dipl. Bauing. ETH

Head of Equity Asset ManagementDegree in Civil Engineering fromthe Swiss Federal Institute of Technology (ETH) in ZurichExperience: 22 years

Sven SchalteggerMRICS, CFA, CAIA

Lead Portfolio ManagerRelevant experience at UBS, Partners Group, SCM, and PwC, in both direct and indirect investmentsExperience: 18 years

Christoph BieriCEFA

Head of Indirect Real EstatePortfolio manager of Swiss indirect real estate mandatesExperience: 32 years

John DavidsonProf. Dr. oec. publ., CAIA

Co-Head of Real Estate at Lucerne University of Applied Sciences and ArtsRelevant experience in alternative investments at UBS and Swiss ReExperience: 20 years

Portfolio management

Sven SchalteggerMRICS, CFA, CAIA

Lead Portfolio ManagerRelevant experience at UBS, Partners Group, SCM, and PwC, in both direct and indirect investmentsExperience: 18 years

Philip SignerCFA

Worked in investment management at Zurich Insurance Group and portfolio advisory at Credit SuisseExperience: 6 years

Fabian Egg

Worked for Goldman Sachs in acquisition and asset management (European real estate and distressed debt)Experience: 5 years

Marcel Kaufmann

Worked as an independent advisor in private equityRelevant experience at SCM and Swiss ReExperience: 18 years

Fabian Stäbler

Business Manager in Asset Management EquitiesWas local COO for Asset Management in Singapore Experience: 15 years

Heinz TschaboldCAIA

Senior Portfolio Manager in Real Estate SecuritiesImplemented quantitative models in real estate at UBS WarburgExperience: 20 years

Product specialists

Oliver Smith

Real Estate Product SpecialistWorked on real estate product development for Credit Suisse Asset Management Relevant experience with Macquarie and Brookfield in SydneyExperience: 15 years

Fabian Linke

Real Estate Product SpecialistWorked in Credit Suisse Asset Management real estate strategies and advisoryRelevant experience at Swiss Finance & Property and Swiss Prime Site Experience: 15 years


Source: Credit SuisseData as of Q2 20201 Weighted average unexpired lease term. Note: These investment examples are for illustrative purposes only.Historical performance data and financial market scenarios are not reliable indicators of future performance.

CSA 2 Multi-Manager Real Estate GlobalExemplary case study – Dutch residential fund

Target fund

Investment strategy

Country

Sector

Type

Core

The Netherlands

Residential

Open-ended

Key metrics

Fund size (GAV)

Number of assets

Leverage

Occupancy

WALE1

EUR 2.1bn

108

0%

98.1%

n/a

Investment strategy

The fund follows a transparent investment strategy focused on prime residential assets in the Netherlands with attractive risk-adjusted income profiles. The fund targets the mid-priced segment with low risk tenant groups.

78%

20%

2%

Maisonettes &Apartments

Single FamilyDwellings

Other

Investment highlights

Unique secondary market opportunity to gain immediate exposure to an attractive market without paying a premium in a 0%-leverage fund. This fund will not be investable through the primary market until 2020 at least.

12.9% net total return achieved in 2019.

The Dutch residential market benefits from the recovery of Dutch economy and housing market as well as from new legislation that is likely to have a positive impact on the non-regulated residential real estate sector.

Amsterdam, Netherlands

Sector Allocation


CSA 2 Multi-Manager Real Estate GlobalExemplary case study – US residential fund

Source: Credit SuisseData as of Q2 20201 Weighted average unexpired lease term.2 These forecasts are no reliable indicators for future performance.Note: These investment examples are for illustrative purposes only.Historical performance data and financial market scenarios are not reliable indicators of future performance.

Target fund

Investment strategy

Country

Sectors

Type

Value add

USA

Residential

Closed-ended

Key metrics

Fund size (GAV)

Number of assets

Leverage

Occupancy

WALE1

USD 389 million

7

56%

91%

n/a

Investment strategy

The fund is buying and renovating existingmultifamily apartment properties built in the1990ies or early 2000s thereby achieving a rentpremium which in turn increases the value of theassets. The fund’s goal is to derive a high incomereturn and capital growth by selling the assets incoming approx. 5 -7 years.

37%

36%

14%

13%Mideast

Southwest

Southeast

West North Central


Late primary investment in an established residential manager in the US

Benefited from an immediate net uplift after investing in the final close in excess of 16%

Target gross IRR of 15% - 17% High cash-on-cash and strong rental gap to class-

A properties mitigate the risk of upcoming supply. Employment, income and population growth in the respective submarkets are expected to drive demand and rents2

Houston (TX), USA

Geographic allocation


16%

14%

11%

10%9%

9%

8%

7%

6%5%3%

2% EindhovenBarendrechtZwolleUtrechtAmsterdamBoxtelHeterenCuijkDeventerRotterdamZwolleAlphen a/d Rijn

CSA 2 Multi-Manager Real Estate GlobalExemplary case study – European light-industrial fund

Source: Credit SuisseData as of Q2 20201 Weighted average unexpired lease term.Note: These investment examples are for illustrative purposes only

Target fund

Investment strategy

Country

Sectors

Type

Core

Benelux, Germany

Light-industrial

Open-ended

Key metrics

Fund size (GAV)

Number of assets

Leverage

Occupancy

WALE1

EUR 97 million

15

30%

100%

8.3 years

Investment strategy

The fund acquires light-industrial, multi-let light industrial and small logistics properties at attractive initial yields predominantly in the Benelux countries and Germany. The manager enhances income through active asset management, tenant strategies and capex programs.


Investing in a newly launched fund with an attractive existing seed portfolio

Ability to negotiate fund terms and take an active position in drafting the legal documents

Ensured casting vote on the investor advisory committee

Benefitting from an immediate valuation uplift at the initial close of the fund

Eindhoven, Netherlands

Geographic allocation


CSA 2 Multi-Manager Real Estate Global Key facts

Source: Credit Suisse1Target return is based on a long-term investment time horizon. The target return is not a projection, prediction, or guarantee of future performance, and there is no certainty that the target return will be achieved.2 This is the current annual management fee. The maximum annual management fee is disclosed in the prospectus.

Share class Minimum investment volume Annual management fee2 Qualified investors

A CHF 1 million 0.70% Pension funds

L CHF 10 million 0.58% Pension funds

M CHF 20 million Mandate fee Pension funds

Product information

Investment strategy

Geography

Sectors

Launch date

Underlying currency

Currency hedging

Portfolio construction phase

Subscriptions

Redemptions

Sales commission

Anti dilution fee

Notice period

Target IRR (CHF) p.a.

Core plus

Global, except Switzerland (America, Europe, Asia Pacific)

Office, retail, residential, logistics, other

October 4, 2016

CHF

Foreign currency risk are most widely hedged in CHF

4 years

Capital commitments

Quarterly

None

2.0% (for the benefit of the investment group)

12 months

5–7 %1


CSA 2 Multi-Manager Real Estate GlobalSubscription and redemption

Subscription Redemption

Issuance of shares by means of capital calls Capital calls are announced with a notice period of seven

days Issued at NAV at the end of the previous quarter No subscription fee is charged

The shares can be redeemed quarterly as at the end of a quarter, subject to a notice period of twelve months

A redemption fee of 2% is levied (remains in investment groups assets)

Capital call

Announcement (T-7 calendar

days)

Call(TD)

Announcement (T-7 calendar

days)

Call(TD)

Issued at NAV at the end of the

previous quarter

Capital commitment

Issued at NAV at the end of the

previous quarter

Capital call

Year n+1

Value date redemption (T+30 bank

working days)

Value date redemption (T+30 bank

working days)

Year n

Notice deadline Notice deadline Notice deadline

Redemption

End of quarter 4 End of quarter 1 End of quarter 2

Price determination

Price determination

Price determination

Notice

Redemption Redemption Redemption

End of quarter 1 End of quarter 2 End of quarter 3

End of quarter 1

End of quarter 1

Source: Credit SuisseFor illustration purposes

End of quarter 2

End of quarter 3

End of quarter 4

Notice Notice Notice


CSA 2 Multi-Manager Real Estate GlobalReasons to invest


Information advantage 580+ target funds screened Over 1’000 meetings and calls held with fund managers Global Credit Suisse platform Take active positions on the advisory boards of the target

funds

Due diligence capacities Reference calls Visit of fund management teams Internal background checks

Sourcing capabilities Various secondary market transactions Immediate performance uplift in excess of 16% Exclusive deal sourcing

Negotiation power Management fee discounts Lower the maximum leverage Privileged extension of the subscription deadline Introduction of a removal for cause provision

Structuring capabilities Seeding a new fund Prevent the conversion of a target fund Special Purpose Vehicle (SPV) Leading negotiations with tax authorities and apply for tax

rulings

Credit Suisse Credit Suisse Global Real Estate is the 4th largest real

estate investment manager in Europe Access to global network and expertise of Credit Suisse True multi-manager approach with no conflict of interest Core plus strategy with overweight's in the logistics and

residential sectors


Contact information

1 Please note that telephone calls to our numbers may be recorded. We assume that, by calling us, you accept this business practice.

Sven Schaltegger MRICS, CFA, CAIALead Portfolio ManagerCSA 2 Multi-Manager Real Estate GlobalDirector, Indirect Real EstateKalandergasse 4 8045 ZurichSwitzerland

Phone +41 44 332 61 391

[email protected] www.credit-suisse.com

http://www.credit-suisse.com/


Appendix


Non-listed real estate fundsInvestment styles

Sources: INREV, Credit SuisseFor illustration purposes only

Investment style Core Core Plus Value Add Opportunistic

Risk Low to average Average Average to high High

Leverage (LTV) ≤ 40% 30% to 60% > 40% to 60/65% ≥ 65%

Occupancy level High> 90%

Well occupied 75% to 95%

Leasing potential60% to 80%

Turnaround0% to 70%

Target exposureto project developments

≤ 5% > 5% to ≤ 25% > 25%

Return composition Current income orientation Current income and capital appreciation

Capital appreciation and current income

Capital appreciation

Real estate type and location

Existing, stabilized properties Well tenanted, central and

stable income returns Long-term leases Strong tenant credit

Existing, stabilized properties Well tenanted, central, slight

deviations accepted Capital appreciation through

rental growth and/or modest lease up

Properties with upside potential realized through asset management Refurbishments, less centrally

located

Underutilized assets in need of major repositioning Development projects Less centrally located or in

emerging markets

Holding period Unlimited Unlimited Typically seven to ten years Typically five to eight years

Current income orientation Focus on capital appreciation

Risk HighLow


Outlook on markets and regionsCOVID–19 crisis

Before start of Covid-19: structurally lower vacancies and lower construction volume

US and Australia show weak demand, Europe and Japan currently stable

Impact of home office to be seen in the medium-term

Generally negative impact of the recessionary environment on office rents

Popular markets: Japan UK The Netherlands and Germany

Risks / What to avoid? USA San Francisco, NY, Exposure

to commodity sector Insolvencies of various tenants, low

credit quality Long tenant contracts Pricing in London despite Brexit Co-working Provider with weak

balance sheets (e.g. Wework) Hong Kong, Tier 1 China ahead of

significant value correction

Before start of Covid-19: very dynamic demand from e-commerce (Amazon)

Increasing importance of e-commerce helps logistics to sail well through the current crisis

However, rent increases will be weaker in the future

Popular markets: USA and UK The Netherlands and Germany Eastern Europe

Risks / What to avoid? Big, old industrial buildings Exposure to global trade is a risk Already very aggressive pricing Supply risk in the greater Tokyo area

E-commerce leads to challenges for traditional retailers

Crisis in the US, Australia and the UK is accelerated through Covid-19

Also weaker demand expected in Continental Europe

Popular markets: Eastern Europe Emerging Asia Korea Japan

Risks / What to avoid? Recommended to underweight the

sector globally Growing cap rates in continental

Europe in 2020 Old retail concepts, second class

locations Oversupply in the UK and USA

Office Logistic Retail

Younger generation prefers renting vs. Buying

Structural market shifts and more restrictive access to mortgages increase the demand for rental flats

Population increase and migration as growth drivers

Popular markets: USA (especially sunbelt region) UK The Netherlands Japan

Risks / What to avoid? Cities exposed to tourism High rise in US inner cities Low initial yields in Europe Demographic developments in

Japan as long-term risk for residential properties outside Tokioand Osaka metropolitan regions

Berlin (political risk)

Residential

Source: Credit SuisseLast data point: August 2020


CS (Lux) Multi-Manager Real Estate GlobalReal estate markets in the US – Q2 2020

Historical performance and financial market scenarios are not reliable indicators of future results.

Total return for investment properties in US versus previous quarterSpread between prime real estate and 10-year government bonds Global comparison of risk premiums for real estate investments Further outperformance for logistics properties in the US

The US office market weakened substantially in Q2/20, net absorption was negative with 8.4m sqft

The aggregated vacancy rate rose 80 bps and stood at 14.8% at the end of Q2/20 according to JLL. Continuously difficult leasing market expected for H2/20.

(Source: Credit Suisse)

Robust quarter. Online retail remains a market pillar. The vacancy rates rose only slightly by 0.3% to 4.8% and remains around a historical low

Rent growth accelerated and stood at 6.2% vs. Q2/2019

(Source: CBRE)

Challenging Q2/20 due to the Covid-19 lockdown

Continuous underperformance of the sector against the broader NCREIF Index in H2/20


Starting to weaken, especially in NY and SF while the sunbelt markets continue to show a robust development

Growth of effective rents vs. previous year stood at 1.6% in Q2/20


Sources: PMA, Credit Suisse Sources: Datastream, Credit Suisse

Office Logistic Retail Residential

-400

-200

0

200

400

600

Ber

lin

Fran

kfur

t

Par

is

Am

ster

dam

Lond

on

N.Y

.

Chi

cago

Toki

o

Sin

gapu

r

Syd

ney

Bris

bane

June 2020 Historic average 2001 - 2019 June 2007 (price high ahead of GFC)

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

All segments Office Retail Residential Logistics


CS (Lux) Multi-Manager Real Estate GlobalReal estate markets in Europe – Q2 2020


Development of rentVacancy rate Lower vacancy rate in Europe despite economic weakness Price for office space in central districts (EUR, m2) remain unchanged

Until now, the European office market developed positively, despite the H1/20 recession

Small increase of vacancies by 20 bps to 5.8%. Positive rent growth of 2.8% vs. Q2/19. Expected weakening of the sector for H2/20


Continuously robust market in continental Europe. Rents increased around 2% vs. Q2/19

Record of rental transactions in the UK in Q2/20. Underlying continuous potential of logistics markets


Structural shift expected to continue, increasingly also on the continent due to Covid-19

Rising cap rates and declining rents expected. Vacancies continue to rise.


Residential assets in Germany and the Netherlands continue to perform well. Solid demand despite weaker economic situation

Rents expected to stagnate or slightly increase in H2/20


Sources: PMA, Credit Suisse Sources: RCA, Credit Suisse

Office Logistic Retail Residential


CS (Lux) Multi-Manager Real Estate GlobalReal estate markets in Asia-Pacific – Q2 2020

Sources: CBRE, Credit Suisse Sources: PMA, Credit Suisse


Office prime rentsRents and capital market values Aggregated for APAC, Q2/20 YoY Comparison of vacancy rates and office rents

Office Logistic and Retail Residential

Transaction volumes in APAC were 22% lower than in Q2/19. Travel restrictions continue to impact transaction volume

Cap rates remain stable in Japan and Australia. Increase of cap rates in China / Hong Kong


The situation for retail space also continued to deteriorate in Asia. Rents are under downward pressure in Hong Kong and Australia.

Despite concerns about the economy demand for logistics space remained stable, and we continue to observe rising rents in this sector.


Weakening economy started to impact the Australian office market in Q2/20. Declining rents and increasing vacancies. However, strongest decline in Hong Kong due to political situation.

Japan and Korea with robust development in H1/20. Rents increased in Tokyo and Seoul by 2.6% and 2.3% respectively vs. Q2/19


Beijing

Shanghai

Hong Kong

TokyoSeoul

SingapurSydney

Melbourne

-16-14-12-10-8-6-4-2024

0 5 10 15 20 25

Ren

tcha

nge

Q2/

20 v

s. Q

2/19

Office vacancy rate in %

-15,00%

-10,00%

-5,00%

0,00%

5,00%

Office Retail Logistics

Rents Capital market values


95

100

105

110

115

120

125

130

Cum

ulat

ive

retu

rn (

inde

xed)

CSA 2 Multi-Manager Real Estate Global S CHF Net

CSA 2 Multi-Manager Real Estate Global SPerformance overview

Source: Credit SuisseData as of 30.06.2020Historical performance data and financial market scenarios are not reliable indicators of future performance.

1. quarter 2. quarter 3. quarter 4. quarternet Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec annual2016 – – – – – – – – – – – 3.23% 3.23%2017 – – 0.23% – – 0.36% – – 1.64% – – 3.39% 5.70%2018 – – 1.11% – – 2.12% – – 1.77% – – 2.45% 7.66%2019 – – 1.34% – – 1.06% – – 1.83% – – 2.69% 7.08%2020 – – 0.52% – – -1.22% -0.70% (YTD)Since 04.10.2016 (annualized) 6.13%


CSA 2 Multi-Manager Real Estate Global MPerformance overview

Source: Credit SuisseData as of 30.06.2020Historical performance data and financial market scenarios are not reliable indicators of future performance.

1. quarter 2. quarter 3. quarter 4. quarternet Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec annual2016 – – – – – – – – – – – 3.38% 3.38%2017 – – 0.42% – – 0.51% – – 2.16% – – 3.75% 6.97%2018 – – 1.41% – – 2.55% – – 1.91% – – 2.79% 8.95%2019 – – 1.47% – – 1.23% – – 1.98% – – 2.92% 7.81%2020 – – 0.67% – – -1.09% -0.43% (YTD)Since 04.10.2016 (annualized) 7.12%

95

100

105

110

115

120

125

130

135

Cum

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ive

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rn (

inde

xed)

CSA 2 Multi-Manager Real Estate Global M CHF Net


CSA 2 Multi-Manager Real Estate GlobalGlobal network and local expertise

All invested target funds combined have over 8,700 employees in the real estate sector,

of whom more than 3,400 are real estate investment experts

> 1’900

> 1’000

Source: Credit SuisseAll information as at 31.12.2019

America

Europe

> 500

Asia/Pacific


Investment rationaleInternational real estate investment segment

Direct/indirect investments in real

estate

Traded/non-traded investment

vehicles

Focus of CSA 2Multi-Manager

Real Estate Global

Investments in international real estate may be made directly or indirectly. Whereas direct real estate investments are made either directly in individual properties or via property

companies, indirect investments are made via investment vehicles such as funds and similar structures.

In addition to publicly traded indirect securities with real estate investments (listed), there is a broad range of non-traded investment vehicles (non-listed) abroad.

These differ from publicly traded securities not only in their legal form, but also in terms of liquidity and volatility.

Non-traded investment vehicles generally have lower volatility and a lower correlation to equity markets, but have lower liquidity as they are non-transferable or transferable only to a limited extent.

Source: Credit SuisseFor illustration purposes only

Direct

Non-listed real estate funds Listed real estate funds

Liquidity/volatilityLower Higher

Indirect

International real estate


Source: Credit SuisseData as of Q2/20

> CHF 1.5 bn in fund commitments since 2016

> 1000fund manager meetings/calls

> 135 reference calls

> 1,000opportunities in the investment universe

> 580opportunities screened since Q3 2016

30opportunities closed

Americas > 170 opportunities

Europe > 290 opportunities

APAC > 90 opportunities

Americas 10 opportunities

Europe 15 opportunities

APAC 5 opportunities

Globally diversified portfoliowith over 3’500 underlying properties

Closed

Screened

Universe

Multi-Manager Real Estate platformHighly selective screening process


Leading real estate platform with a global presenceCredit Suisse Asset Management Global Real Estate at a glance

Number 1in Switzerland

Sources: ANREV/INREV/NCREIF Fund Manager Survey 2019, Credit SuisseLast data point: December 31, 20191 Includes assets under management in direct and indirect investment vehicles, with indirect investment vehicles being managed by the Credit Suisse Asset Management Equities business.

30 listed and unlistedproducts and mandates

Over 1,300 properties

in 14 countries

CHF 68.6 bn in AuMCHF 51.6 bn in direct investment vehicles1

New York

São Paulo

Zurich

London

Frankfurt

MilanLausanne

Singapore

Cities where real estate is owned

Locations of Credit Suisse Asset Management Global Real Estate

Location of Credit Suisse Hedging-Griffo

Top 20globally

Top 3in Europe

A track record in real estate management

since 1938


SvenSchalteggerMRICS, CFA, CAIA

Sven Schaltegger, Director, is Senior Portfolio Manager in the Indirect Real Estate team. He holds a master’s degree in finance with "magna cum laude" distinction from the University of Zurich and is a CFA charter holder, CAIA charter holder, and a member of the Royal Institution of Chartered Surveyors (MRICS). Before he joined Credit Suisse in 2016, he was a senior manager and head of real estate M&A at PricewaterhouseCoopers Switzerland. Prior to that, he worked at SCM Strategic Capital Management (now Mercer Private Markets) and Partners Group (PG) as a real estate investment manager. At PG, he was a member of the investment committee for a listed real estate fund. After completing his studies, Sven Schaltegger was first employed at UBS Global Asset Management, where he worked in global real estate product development and management in Zurich, and later as a Junior Portfolio Manager of a Core plus fund with UBS Realty Investors in Hartford, Connecticut, US.

FilippoRimaCFA

Filippo Rima is Managing Director of the Private Banking & Wealth Management division in Zurich. He is Head of Equities in the Asset Management business. Filippo Rima joined Credit Suisse Asset Management in September 2005 from Winterthur Asset Management, where he was a senior portfolio manager on the equity team. Prior to that, he worked at a private Swiss bank for four years as an equity analyst. Filippo Rima holds a degree in business administration from the University of St. Gallen (HSG) and a degree in civil engineering from the Swiss Federal Institute of Technology (ETH) in Zurich. He is a CFA charter holder and a member of the Index Commission of the SIX Swiss Exchange.

Professor John Davidson began his career as a member of the Alternative Funds Advisory private equity team for UBS Global Asset Management in Zurich, where he served until 2005. After that, he joined Swiss Re, where he was one of the chief architects of a global portfolio of indirect real estate investments with 27 institutional real estate funds and a volume of CHF 1.4 billion. Major activities included selection of funds, due diligence coordination and portfolio management, as well as representing Swiss Re on respective advisory boards. Since the fall of 2009, Professor John Davidson has been Co-Head of Real Estate at the Lucerne University of Applied Sciences and Arts.

John DavidsonProfessor Dr. oec. publ., CAIA

Christoph Bieri, Director, is Head of the Indirect Real Estate team. He studied business administration and economics at the University of Bern, qualified as a Certified International Investment Analyst (CIIA) at the Swiss Training Centre for Investment Professionals (AZEK) and in 1988 earned a certificate of proficiency for real estate fiduciaries. After working on a construction statistics project for the Swiss Federal Statistical Office for three years, Christoph joined Zürcher Kantonalbank in 1994 as a financial analyst for the banking and real estate sectors and was a member of the structured Swiss equity mandate team. In 1999, he started working at Banca del Gottardo, where he was responsible for setting up the Swiss equity research team. Christoph joined Credit Suisse in 2002 as a Portfolio Manager, where he set up the Indirect Real Estate product group he continues to manage.

ChristophBieriCEFA

CSA 2 Multi-Manager Real Estate GlobalInvestment Committee


CSA 2 Multi-Manager Real Estate GlobalExpert Board

Heinz TschaboldCAIA

Heinz Tschabold, Director, is a Senior Portfolio Manager in the Real Estate Securities team. He graduated in Business Administration from the University of St. Gallen (HSG) and has a master’s degree in finance. Following his academic studies, he worked as financial analyst at UBS Warburg and assisted Swiss companies in the machinery and electrical engineering fields. In 2002, he joined Credit Suisse and was responsible for implementing quantitative models in the real estate sector. Since 2006, he has been responsible for mandates in the area of international real estate investments. As portfolio manager of the Credit Suisse (Lux) European Property Equity Fund, he is also responsible for the selection of companies and funds from German-speaking markets.

Werner Richli, Director, is a Senior Portfolio Manager in the Indirect Real Estate team. He graduated in business administration from the University of Zurich and is a Certified Financial Analyst and Asset Manager (TCIP). From 1987, he worked as a financial analyst in Credit Suisse Investment Banking and assisted various companies such as Kaba, Swisscom, Geberit, and Swiss Prime Site with their initial public offerings. In 2003, he joined Credit Suisse Asset Management. There, he developed real estate research and was responsible for the asset allocation of the first real estate fund investing internationally, Real Estate Fund International. This was followed in 2006 by the development of the mandate business for international real estate investment and the management of the Credit Suisse (Lux) Infrastructure Equity Fund.

Werner RichliCEFA

JohnDavidsonProfessor Dr. oec. publ., CAIA

ChristophBieriCEFA

Filippo RimaCFA

SvenSchalteggerMRICS, CFA, CAIA


CSA 2 Multi-Manager Real Estate GlobalPortfolio Management (1/2)

SvenSchalteggerMRICS, CFA, Lead Portfolio Manager

HeinzTschaboldCAIA

Fabian Egg

Fabian Egg, Assistant Vice President, has worked in the Indirect Real Estate team since 2019. He graduated with a first class honors degree in management studies (BSc) from the London School of Economics and initially worked for Goldman Sachs in London, focusing on the acquisition and asset management of Pan-European Real Estate and Distressed Debt. During his three years at Goldman Sachs, he also worked for the Mortgage Trading team in New York and Dallas, gaining experience in the American market.

Philip SignerCFA

Philip Signer, Assistant Vice President, is an investment professional in the Indirect Real Estate team. He holds a master’s degree in banking and finance from the University of St. Gallen (HSG), complemented by studies at the Seoul National University (SNU) in South Korea, and is a CFA Charterholder. Before joining Credit Suisse in 2015, Philip worked in Investment Management at Zurich Insurance Group as an Investment Performance Analyst. He then joined Credit Suisse, working in Advisory Portfolio Management in the Investment Solutions and Products area, and was responsible for the construction and optimization of multi-asset-class portfolios for advisory clients.


Marcel Kaufmann, Director, screens and selects real estate funds in the Indirect Real Estate team. He holds a master’s degree in strategy and organization from the University of St. Gallen and studied at SNU Seoul National University on the MBC program. He was a partner at Advanta Capital, a private equity advisory company that he co-founded, built up and sold. Before that, he worked as a private markets investment professional for SCM Strategic Capital Management (today Mercer Private Markets), Evolvence Capital (Dubai, UAE) and Swiss Re, where he was responsible for sourcing, evaluating and executing private equity, infrastructure and real estate transactions (primaries, secondaries, co-investments).

Fabian Stäbler, Director, is a Product Specialist in the Indirect Real Estate team and Business Manager in Asset Management Equities. He studied business engineering at the University of Applied Sciences and Arts NorthwesternSwitzerland (FHNW). Fabian joined Credit Suisse in 2009 and worked initially as Business and Project Manager in Asset Management Switzerland & EMEA in Zurich. After working in Asset Management in Hong Kong in 2011, he led the expansion of the Asset Management area in Singapore. In 2013, he became local COO for Asset Management in Singapore and was then responsible for supervising local activities, product and platform management as well as business and strategy development. Before joining Credit Suisse, Fabian worked for four years for Swiss Life Asset Management as a Business Process Engineer and Business Analyst.

Fabian Stäbler Marcel Kaufmann

CSA 2 Multi-Manager Real Estate GlobalPortfolio Management (2/2)


CSA 2 Multi-Manager Real Estate GlobalYour contacts

Oliver SmithProduct Specialist

[email protected] Phone +41 44 332 25 97

Fabian LinkeProduct Specialist

[email protected] +41 44 334 25 74

Fabian Linke, Director, has 15 years of professional experience in the real estate business. He has been responsible for business development of international investing in real estate products managed from Zurich.

Fabian started his career at Credit Suisse as a banking intern in 2004. In 2006, he joined Credit Suisse Asset Management, where he was responsible for institutional distribution of collective investment vehicles including real estate solutions in Switzerland.

In 2008, he assumed responsibility for real estate strategies and advisory services at Credit Suisse Asset Management Global Real Estate. Up to 2015, he oversaw capital increases, IPOs, and initial issues worth over CHF 8 bn.

In 2015, he left Credit Suisse to go to Swiss Prime Site and then to Swiss Finance & Property Group before returning to Credit Suisse Global Real Estate as a Business Developer in 2018.

Fabian holds a BA in Banking and Finance from the ZHAW Zurich University of Applied Sciences and an MA in Real Estate from the University of Zurich.

Oliver Smith, Director, has 15 years of professional experience in the real estate business. He is a Product Specialist covering real estate for Credit Suisse Asset Management.

Oliver joined Credit Suisse Asset Management in 2018, initially working in the Product Development and Management team covering the Global Real Estate franchise. In that role, he had a broad remit encompassing all new and existing real estate funds.

His prior real estate experience includes real estate advisory at PricewaterhouseCoopers in Munich and Zurich, real estate investing and business development at Brookfield Asset Management in Sydney, and real estate investment banking and unlisted capital raisings at Macquarie Capital in Sydney.

Oliver holds a Bachelor of Actuarial Studies and a Bachelor of Laws from Australian National University. He has strong experience in real estate investment, business development, capital raisings, and advisory.


Source: Credit Suisse, otherwise specified.Unless noted otherwise, all illustrations in this document were produced by Credit Suisse Group AG and/or its affiliates with the greatest of care and to the best of its knowledge and belief.

The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein was produced by Credit Suisse Group AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. CS provides no guarantee with regard to the content and completeness of the information and where legally possible does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. The key risks of real estate investments include limited liquidity in the real estate market, changing mortgage interest rates, subjective valuation of real estate, inherent risks with respect to the construction of buildings and environmental risks (e.g., land contamination). CS Real Estate SICAV - SIF I - CSA 2 Multi-Manager Real Estate Global: This fund is not registered in Switzerland. They may only be sold to qualified investors pursuant to art. 10 paras. 3 to 4 of the Federal Collective Investment Schemes Act (CISA). The representative in Switzerland is Credit Suisse Funds AG, Zurich. The paying agent in Switzerland is Credit Suisse (Switzerland) Ltd.Copyright © 2020 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.

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