Research Update: Diversified Property Owner CBRE Pan European Core Fund Assigned 'BBB+' Rating; Outlook Stable

CBRE Pan European Core (PEC) Fund is a wholly owned subsidiary of CBRE Global Investors Open-Ended Funds S.C.A. SICAV-SIF, a diversified open-ended real estate fund focusing on investment and management of prime quality industrial, retail, office, and residential assets across Europe, with a total gross asset value of €4.8 billion as of Sept. 30, 2020. The company intends to keep expanding its portfolio base and maintaining low leverage, with debt-to-debt plus equity below 25% and strong interest coverage of about 7x over the next two years. We are therefore assigning our 'BBB+' long-term issuer credit rating to CBRE PEC Fund. The stable outlook indicates that we expect CBRE PEC Fund's segment diversity, asset quality, and growth strategy to mitigate the

...- CBRE Pan European Core (PEC) Fund is a wholly owned subsidiary of CBRE Global Investors Open-Ended Funds S.C.A. SICAV-SIF, a diversified open-ended real estate fund focusing on investment and management of prime quality industrial, retail, office, and residential assets across Europe, with a total gross asset value of 4.8 billion as of Sept. 30, 2020. - The company intends to keep expanding its portfolio base and maintaining low leverage, with debt-to-debt plus equity below 25% and strong interest coverage of about 7x over the next two years. - We are therefore assigning our '###+' long-term issuer credit rating to CBRE PEC Fund. - The stable outlook indicates that we expect CBRE PEC Fund's segment diversity, asset quality, and growth strategy to mitigate the COVID-19 pandemic's impact on the company's retail portfolio rental income, and we anticipate it will continue to generate overall stable and predictable income....

Research Update