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Credit Suisse plans $950 million German real estate sale

LiveMint logoLiveMint 02-06-2014 Dalia Fahmy

Berlin: Credit Suisse Group AG is selling commercial buildings in Germany valued at about €700 million ($950 million) as it liquidates property mutual funds in the country, two people with knowledge of the matter said.

Brookfield Financial is managing the sale, said the people, who asked not to be identified because the matter is private. Some of the 20 properties being sold are held by Credit Suisse’s CS Euroreal fund and include the German headquarters of Royal Philips NV in Hamburg, one of the people said.

A spokeswoman at Zurich-based Credit Suisse and a spokesman at Brookfield Financial, a unit of Toronto-based Brookfield Asset Management Inc., declined to comment.

German property funds began winding down more than €25 billion of assets in 2010 after investors, shaken by the global financial crisis, sought more redemptions than funds could immediately meet. More than 13 of the 44 funds have suspended redemptions or are liquidating, said Sonja Knorr, an analyst at Berlin-based Scope Ratings.

The CS Euroreal fund has properties valued at about €4.3 billion, according to Credit Suisse’s website. The fund had €6 billion of assets when it began liquidating in 2012.

Credit Suisse has until 30 April 2017 to liquidate CS Euroreal, according to German regulators.

In December, Credit Suisse agreed to sell six properties, including the Corn Exchange office building in London, for €315.3 million. That was 6.5% less than the previously assessed value.

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