UBS to Put Credit Suisse Real-Estate Fund Into Liquidation

By Adria Calatayud

UBS Group said its Swiss fund-management business decided to put Credit Suisse Real Estate Fund International into liquidation amid limited liquidity in real-estate markets in the bank's latest step to unwind parts of the portfolio of former rival Credit Suisse.

The Swiss banking group said Thursday that it would have to sell most liquid assets within the fund's portfolio to meet outstanding 2023 redemption requests at an inopportune time in the real-estate market. This would hurt remaining investors, diminish the attractiveness of the rest of the portfolio and likely trigger further redemptions, the bank said.

A process to sell assets over the past 18 months to meet redemptions notified in 2022 showed the limited depth of real-estate markets, UBS said. Moreover, the latest assessment of the fund's portfolio as of the end of June resulted in an average devaluation of about 12% compared with six months earlier, UBS said.

Property sales and payments as part of the liquidation process will be carried out over several years in light of current limited market liquidity, UBS said. All investors will be paid out equally during the liquidation process, regardless of whether they submitted a redemption request or not, it added.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

August 15, 2024 04:38 ET (08:38 GMT)

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