UBS: Deferral of redemption of European funds
There have been numerous redemptions of units in the UBS Property Fund Europe, which is worth almost CHF 300 million. As it is currently only possible to sell at a loss on the foreign markets, UBS has included a deferral clause in the fund contract.
UBS Fund Management has announced that the redemption of terminated units in the UBS (CH) Property Fund - Europe has been postponed. "Due to the sharp drop in demand for European real estate investments over the past two years, properties can currently only be sold at a high discount," is how the fund management company explains its measure. It is a "temporary deferral of redemption" for the units accrued by the exchange-traded fund for the financial year ending June 30. These amounted to 27.8% of all outstanding shares. With the deferral, UBS refers to §17 clause 5 of the fund contract. A recovery of the European real estate markets "with rising transaction volumes and resilient prices" is not expected until 2026 at the earliest.
Rental loss rate at a low 0.6%
The fund invests in residential, logistics, office and retail properties across Europe. It was launched in 2018 and listed on the Swiss stock exchange in 2022. The portfolio comprises 14 properties with a market value of CHF 283.5 million. The rental default rate is stated at 0.6% and the average remaining lease term is over six years. In addition, rental income has increased by 19% since the properties were purchased through re-letting and indexation. (aw)
