The fraying office market has claimed a new victim as UBS Group AG (NYSE: UBS) announced plans to liquidate a flagship real estate fund.
Bloomberg reported the CS Real Estate Fund, which the company absorbed in its acquisition of Credit Suisse, had more than 80% of its $2.2 billion in assets in office properties, mostly in the US and Germany. The Swiss-headquartered bank announced it would close the fund because outstanding redemption requests would require the selling of most liquid assets below their long-term intrinsic values.
The market value of the fund’s assets decreased 12% during the first half of the year, while the fund lost 31% of its value in 2023 compared to the prior year.
Photo: Martin Abegglen / Flickr Creative Commons
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