Credit Suisse closes $270m green fund

The bank has raised CHF300m for its dedicated green property fund, which will be listed on the Swiss exchange by 2013. The fund will target real estate in Switzerland only.

Credit Suisse has closed a Swiss green real estate fund on CHF300 million (€199.3 million; $270.8 million).

The fund has already committed CHF220 million to projects in Switzerland, according to a statement. Investors included institutional LPs but the vehicle is expected to be open to the public within five years and listed on the Swiss exchange by 2013 or 2014.

The manager of the fund is Jean-Claude Maissen, the statement added. The vehicle was open to investors for just two weeks up to April 29.

According to a Reuters report, Credit Suisse said it expected real estate in Switzerland to “outperform most other regions”.

Few real estate investors have launched dedicated green vehicles. In March, London-based private equity real estate firm, Climate Change Capital, made its first acquisition for its dedicated green fund. The vehicle raised £50 million in a first close in October last year.

The six-storey property at 5 St Philip’s Place, Birmingham, England, was bought for £30 million, according to data provider Real Capital Analytics. The building, which is leased to the UK government as well as retailer Marks and Spencer and banks HSBC and HBOS, will be retrofitted by Climate Change.

US developer Jonathan Rose has also raised a dedicated green fund, the $100 million Rose Smart Growth Investment Fund, over the past few years. In January this year, the fund acquired 198 units of affordable housing and approximately 4,500 square feet of ground floor retail space in Harlem, New York, for $26.5 million.