UBS Liquidates $2B Credit Suisse Real Estate Fund Amid Market Slump: Report

UBS Group AG UBS reportedly placed a real estate fund from its former competitor Credit Suisse, valued at over $2 billion, into “orderly liquidation.”

UBS stated that the Credit Suisse Real Estate Fund International had total net assets of 1.88 billion Swiss francs ($2.17 billion) as of June, reported Reuters.

The fund’s value had significantly declined throughout 2023, according to earlier reports from the bank. UBS stated that 36% of the fund’s total units in circulation in 2022 had been redeemed by the end of 2023, per the report.

UBS noted that meeting the outstanding 2023 redemptions would require selling the portfolio’s most liquid assets at an “inopportune time” in the real estate market.

UBS added that this would negatively affect remaining investors, reduce the portfolio’s attractiveness, and likely lead to further redemptions, the report further added.

Yesterday, UBS  reported second-quarter FY24 sales of $11.9 billion, up 25% Y/Y, beating the consensus of $11.3 billion and  EPS of $0.34, beating the consensus of $0.12.

According to Benzinga Pro, UBS has gained around 27% in the last 12 months. Investors can gain exposure to the stock via Avantis International Equity ETF AVDE and American Century ETF Trust Avantis Responsible International Equity ETF AVSD.

Price Action: UBS shares are down 2.33% at $30.17 premarket at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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