UBS announces timetable for merger of "Green Property" and "Direct Urban"
The two funds, which focus on both commercial and residential properties, will operate under the name "Direct Mixed Urban" after the merger.
According to a statement from UBS Fund Management (Switzerland) AG, the two mixed-use and direct investing real estate funds UBS Green Property and UBS Direct Urban will merge at the end of the year. The newly combined fund will be called UBS (CH) Property Fund - Direct Mixed Urban. The focus will be on properties with commercial and residential uses in urban centers and their agglomerations. With a volume of CHF 3.9 billion and 80 properties (as at the end of 2024), the fund will be one of the largest directly holding Swiss real estate funds with a more diversified portfolio.
Conditions will not be known until mid-March
"The amended fund agreements will now be submitted to the supervisory authority and the completion of the merger will follow the usual approval process," UBS writes in a statement. The terms of the transaction are expected to be announced in mid-March with the final financial statements of the funds to be merged retroactively at the end of December.
UBS had already announced in November that it would merge funds with similar investment strategies, thereby streamlining the number of products, which had grown considerably following the takeover of Credit Suisse. As previously announced, UBS is also planning to merge two other indirectly investing real estate funds that are exchange-traded and focus on commercial real estate, namely "Swissreal" and "Interswiss". As UBS emphasizes, the fund management company reserves the right to "postpone or adjust these changes depending on market developments."
