Credit Suisse Cuts Property Fund Payouts as Investors Exit
- CS Real Estate Fund International’s NAV to drop as much as 10%
- Investors with 13.3% of the fund’s share are trying to redeem
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Credit Suisse Group AG’s funds business cut payouts on a 3.25 billion Swiss franc ($3.5 billion) real estate pool and said some clients were seeking to pull their cash after valuations were hit by rising interest rates.
The Credit Suisse Real Estate Fund International’s net asset value is expected to drop as much as 10%, according to a statement Friday. That will likely limit distributions to investors to as low as 35 francs a share, down from 40 francs a share, it said. Investors holding about 13.3% of the fund’s shares have asked for their money back.