Credit Suisse to Sell German Property - Analyst Blog

As a part of its effort to liquidate CS Euroreal fund, Credit Suisse Group AG CS plans to sell commercial buildings in Germany worth 700 million euros ($950 million), according to a Bloomberg report. Toronto-based asset management holding company Brookfield Asset Management Inc. BAM has been appointed to manage the sale of these properties.

Notably, this effort of liquidating property mutual fund began in May 2012, when Credit Suisse decided to shut down its 6 billion euros ($7.7 billion) CS Euroreal fund owing to its inability to make fair payments to investors. According to German regulators, Credit Suisse has to liquidate CS Euroreal fund by Apr 30, 2017. Currently, CS Euroreal fund holds properties worth around 4.3 billion euros.

In the aftermath of the financial crisis, overall property funds in Germany had to shed assets worth 25 billion euros in 2010. Shaken by the crisis, investors sought more redemption, which hit these funds hard. In fact, more than 13 out of 44 funds in the country are now gradually liquidating or have suspended redemptions. Credit Suisse's CS Euroreal fund was also a victim of this.

Credit Suisse offers various financial services to private, corporate, institutional, government as well as high-net-worth individuals throughout the world. Diversified services offered by the bank include private banking, financial advisory services, insurance and pension solutions, securities underwriting, sales and trading, financial advisory, investment research, venture capital and asset management services.

Credit Suisse currently holds a Zacks Rank #4 (Sell). Some better-ranked foreign banks include Banco Bradesco S.A. BBD and BBVA Banco Franc BFR. Both these stocks sport a Zacks Rank #1 (Strong Buy).