UBS to Close Legacy Real Estate Fund on Office Market Woes
- Former CS fund becomes latest casualty of property slump
- Redemptions show ‘limited depth’ of real estate markets
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UBS Group AG will liquidate a flagship real estate fund in the latest sign of the turmoil caused by investors pulling money out of slumping commercial real estate markets.
The fund, which was inherited in the takeover of Credit Suisse, was highly exposed to some of the weakest sectors. It had over 80% of its 1.9 billion Swiss francs ($2.2 billion) in assets in office properties, and the US and Germany were its biggest markets, according to UBS.