The corona crisis is causing investors to doubt the value of real estate. A Credit Suisse fund recently performed so poorly that the bank is now closing it.
Credit Suisse (CS) is closing its Real Estate Fund Global. The decision was made, among other things, because of the discount on the stock exchange CS on Monday With.
The fund recently traded at a discount of 20 percent and more compared to the calculated value of the properties contained in the fund. The triggers are the corona pandemic and the uncertain economic outlook.
The properties are to be transferred to CS Real Estate Fund International in the first half of next year. The liquidation proceeds will be paid out to the investors, according to the big bank. The fund lost over 16 percent in the current year, and trading volumes were also low. At the end of the first half of 2020, the fund held almost CHF 300 million in assets.