UBS put a Credit Suisse real estate fund into what it called an “orderly liquidation.” The Swiss bank acquired the fund after completing its takeover of former rival Credit Suisse last year. The takeover came after Credit Suisse ran into a series of financial setbacks, capitulating in 2023.
The total net assets in the Credit Suisse Real Estate Fund International came to the value of 1.88 billion Swiss francs ($2.17 billion) at the end of June. “The process to sell assets over the past 18 months to meet … redemptions has demonstrated the limited depth of the real estate markets,” UBS Fund Management said of the decision to liquidate the $2 billion fund. The bank clarified that it redeemed 36% of the fund’s total units in circulation by the end of 2023.
In order to complete the remaining redemptions after 2023, UBS clarified that it would need to start by selling the most liquid assets in the portfolio. UBS warned that this approach would likely come to the detriment of investors especially as the attractiveness of the portfolio deteriorates.