Credit Suisse acquires office properties in US and UK

Credit Suisse's international real estate fund has entered the US market and stepped back into the UK with the acquisition of four prime office buildings in recent months for a total investment volume of CHF 266.5 mln (EUR 176 mln).

The properties are in Boston and Washington DC in the US and the UK cities of Bristol and Leeds. The stabilised net returns range between 7.4% and 8.3%.

The fund was launched in 2005 and is using the severe slumps in key markets to expand its office portfolio.

The largest acquisition was in the US capital where the fund purchased the trophy building at 1099 New York Avenue for $90.5 mln (EUR 60.6 mln). Credit Suisse noted that the building, erected between 2006 and 2008 by real estate developer Tishman Speyer, was dubbed 'Washington DC office building of the year' by the Washington Business Journal. The main tenant is law firm Jenner & Block.

Credit Suisse said it managed to pull off a coup with the acquisition of the 14-storey Independence Wharf property in Boston's financial district for $106.3 mln. The building was originally constructed in 1927 as a warehouse and restructured as an office building in 2001.

The fund had left the UK market in 2007 with the disposal of Cromwell House in London, but it has now returned to take advantage of the 'weakened recession and noticeably diminished property prices'. Credit Suisse acquired an eight-storey office building at 3 Rivergate in the centre of Bristol for £21.5 mln. The law firm Osborne Clarke is the building’s sole tenant.

In Leeds, Credit Suisse purchased the 5,600-m² One Leeds City Office Park property in the centre of the city for in Leeds for £15.1 mln (EUR 16.45 mln). Most of the property is let to government estate holding firm Trillium (Prime) Property GP.