CS EUROREAL Open-Ended Real Estate Fund Compliant
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Note CREDIT SUISSE ASSET MANAGEMENT Immobilien Kapitalanlagegesellschaft mbH gave irrevocable notice to terminate the management of the CS EUROREAL fund on 21 May 2012 to take effect on 30 April 2017 and also declared that it had permanently stopped the issue and the redemption of units of the CS EUROREAL fund. This meant that any received buy and sell orders would no longer be performed. This report is not provided for the purchase of Fund units on the secondary market. CS EUROREAL Open-ended Real Estate Fund Compliant with German Investment Act Non-Binding Translation of the Annual Report as at 30 September 2016 Brief Summary of CS EUROREAL Key Figures as at 30.09.2016 WKN 980 500 WKN 975 140 Fund in EUR in CHF in EUR Fund‘s net assets (in million) 2,054.4 141.6 2,185.2 Total gross real estate assets (market value (book value for projects) in million EUR) 1,876.4 thereof directly held (in million EUR) 1,231.1 thereof held via property companies (in million EUR) 645.3 Total number of properties held by the Fund 32 thereof via property companies (number) 6 Letting level (in %) 85.5 Interim distribution per unit for the financial year 2015/2016 as at 26 July 2016 3.00 3.50 Year-end dividend per unit for the financial year 2015/2016 0.00 0.00 (Reinvestment at the end of the financial year as at 30 September 2016) Investment performance (1-year comparison) in %1,2 0.5 -0.3 Unit value/Redemption price 20.89 32.54 Change during reporting period WKN 980 500 WKN 975 140 Fund 01.10.2015 – 30.09.2016 in EUR in CHF in EUR Number of properties purchased 0 thereof directly held (number) 0 thereof held via property companies (number) 0 Number of properties sold 14 thereof directly held (number) 14 thereof held via property companies (number) 0 Unit sales (number) 0 0 0 Unit redemptions (number) 0 0 0 Net fund inflow (number) 0 0 0 Net inflow of funds (in million) 0.0 0.0 0.0 1 Investment success calculation according to the method of the German Federal Association of Investment and Asset Management (BVI Bundesverband Investment und Asset Management e.V.): Investment at unit value (= redemption price)/valuation at unit value; reinvestment of dividend at unit value (= free-of-charge reinvestment). The calculation using the BVI method, which serves comparability, does not take into account individual factors of the Fund or the investor, such as tax aspects of the investment (e.g. capital gains tax, tax-exempt portion of the dividend). The one-off front-end load of up to 5% and individual costs, like fees, commission and other remuneration, are not included in the calculation and would have a negative effect on performance if they were included. Historic value developments and financial market scenarios are not reliable indicators for current or future results. 2 This brief overview only shows the investment success calculated according to the standard BVI method. You will find a detailed presentation of both the investment success’s calculated according to the standard BVI method and the investment success’s calculated according to the recently introduced BVI method for open- ended real estate funds in the process of liquidation under the ‚Fund’s Yield’ heading on pages 25 to 28 of this Report. Fund launch date: 6 April 1992 CS EUROREAL EUR Securities Identification Number (Germany): 980 500 International Securities Identification Number: DE0009805002 Securities Identification Number (Switzerland): 327 344 CS EUROREAL CHF Securities Identification Number (Germany): 975 140 International Securities Identification Number: DE0009751404 Securities Identification Number (Switzerland): 2 248 222 Since 1 October 2005 Cover photo: Lisbon (Portugal), Avenida Dom João II Iote 1.18, ‚Art‘s Building‘ CS EUROREAL Annual Report as at 30 September 2016 4 Report by Fund 82 List of Purchases Management and Sales 44 Overview: Yields, 86 Income Statement Valuation, Letting 88 Notes to the 50 Consolidated Income Statement Statement of the Fund’s Assets 90 Use of Funds Statement 56 Statement of the Fund’s Assets Part I 92 Development of the List of Properties – Fund’s Assets Location of property, useable floor space and values according to valuer 95 Notes to Development of the Fund’s Assets 66 Statement of the Fund’s Assets Part I 96 Development of List of Properties – CS EUROREAL Letting Information and Multiple year overview Incidental Purchase Costs 97 Development 76 Statement of the of the Yields Fund’s Assets Part II Multiple year overview Portfolio of the money market instruments, investment units, securities and cash at bank 99 Special Auditor’s Note 78 Statement of the 100 Tax Information Fund’s Assets Part III Other assets, liabilities, hedging 142 Management, Bodies transactions and provisions, and Sales Associates additional notes Contents 3 Report by Fund Management Dear Investor, paid on a half-yearly basis subject to available liquidity. An interim dividend payment in June/July was made in previous On the following pages of this Annual Report we inform you years in addition to the normal dividend payment in December/ about the progress and important results of the financial year January. Additional interim dividend payments can also be 2015/2016 of the CS EUROREAL fund, from 1 October made at other times, particularly in the case of a successful 2015 to 30 September 2016, and the important events and sale of a large number of properties or a high sales volume. risks and key figures of the Fund in the reporting period or as The repayment of the surplus liquidity in the form of dividends at the reporting date. The Report particularly includes informa- will ensure the equal treatment of all investors and that all held tion on the progress of the Fund’s liquidation together with the units are allocated the same amount per unit. In the case of status of the property sales, mortgage repayments, dividend units held in a securities account at a bank, the dividends will payments and the value development of the Fund. be paid via that bank. The CS EUROREAL fund has been in the process of liquida- The dividends always consist of both accumulated surplus tion since 21 May 2012. We, CREDIT SUISSE ASSET funds from the Fund‘s continuing income, e.g. from rent MANAGEMENT Immobilien Kapitalanlagegesellschaft mbH, payments by the tenants of the Fund‘s properties and interest (CSAM) will continue to manage the Fund on a trustee basis in on the liquid investments of the Fund (cash at bank and fixed- our capacity as Capital Investment/Asset Management term deposits) and repayments of the investment capital (e.g. Company and be responsible for the proper further management proceeds from property sales) to the investors. It should be of the Fund and for the sale of the properties of the Fund until noted that not all the proceeds from property sales can be the expiry of our management mandate on 30 April 2017. used for dividends/capital repayments because a liquidity Both the issue and redemption of units of the CS EUROREAL deduction must be made for the continued proper management fund were finally stopped when the liquidation of the Fund was of the Fund. These liquid funds are necessary for the payment initiated. This means that redemption of units at the Capital of the Fund‘s future expenses and debts and to ensure Investment/Asset Management Company or the Custodian adequate risk provisions. Adequate liquid funds are needed not Bank of the CS EUROREAL fund, i.e. Commerzbank AG, by only for the management of the Fund‘s remaining properties, the investors has not been possible since that point in time in other assets and liabilities but also for the continued proper order to ensure an equal treatment of all investors. management of the Fund for the already completed sale of properties and, for the remaining unsold properties, for example, During the liquidation phase, the investors will receive surplus for letting, maintenance and conversion measures to retain or money of the Fund, which is not needed for the proper increase their attractiveness and to achieve the best possible management of the Fund or the scheduled repayment of selling price. A reasonable liquidity level is also required because loans, in the form of asset distributions. These dividends will be some payment obligations resulting from the completed sale of 4 Report by Fund Management properties such as tax on gains on sale of foreign properties, transition of the CS EUROREAL fund to the Custodian Bank any potential warranty claims or any guarantees given for rent and the ever-decreasing number of portfolio properties. The and construction costs within the scope of such sales are often remaining liquidity after deduction of the risk provisions for incurred long after the signing of the contract of sale and the contingent liabilities including a risk buffer is needed to cover final amount of all involved payments can only be determined future expenses and liabilities that are expected from today‘s long after the sale. It should also be noted that the Fund point of view. These particularly include construction and letting generates increasingly less rental income because of the measures aimed at retaining or increasing the value of the progressing property sales. A reasonable liquidity level thus remaining Fund‘s properties and liabilities resulting from ensures the continued proper management of the Fund for the property sales such as tax on gains on sale abroad, warranty benefit of the investors. The liquid funds of the Fund were claims or guarantees given within the scope of the property EUR 294.2 million (13.5 % of the Fund‘s net assets) as at sales.