As a part of its effort to liquidate CS Euroreal fund,
Credit Suisse Group AG
) 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.
) 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
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.
BBVA Banco Franc
). Both these stocks sport a Zacks Rank #1 (Strong Buy).
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