The UBS (CH) Property Fund – Swiss Mixed Sima is set to raise significant capital as part of its strategic growth plan. Announced in January and detailed recently, the fund will conduct a capital increase from April 24 to May 5, 2025, with an expected emission volume of approximately 356 million francs.
The capital increase will follow a subscription ratio of 1 new share for every 22 existing shares, with the subscription price fixed at 106.20 francs. This financial maneuver aims to bolster the fund's portfolio and facilitate several key real estate projects.
A substantial portion of the proceeds from this capital increase will be allocated to the acquisition of specific real estate projects. Notably, the fund plans to invest in the "Younic" residential new construction project located in Dübendorf, which is expected to enhance its residential offerings. Additionally, the fund will acquire the "Metropol" mixed-use new construction project in Wetzikon, a move that underscores its commitment to diversified real estate investments.
Moreover, the fund has plans for a replacement new building for a residential property in Acacias, Geneva, which will further strengthen its presence in the Swiss real estate market. The remaining funds from the capital increase will be utilized for purchasing additional properties, financing renovations and construction projects, and reducing existing external financing. This strategy is anticipated to optimize the capital structure of the UBS Property Fund.
The announcement of the capital increase reflects UBS's proactive approach to enhancing its real estate portfolio amid a fluctuating market. The bank emphasizes that these strategic investments are crucial for sustaining growth and meeting the evolving demands of the real estate sector.
As the financial landscape continues to shift, UBS's decision to raise capital is seen as a timely response to the opportunities available in the real estate market. Investors and stakeholders will be closely monitoring the outcomes of this capital increase, particularly how effectively the fund can leverage these new resources to drive growth and profitability.
In recent months, the Swiss real estate market has shown resilience, with demand for both residential and commercial properties remaining robust. This context provides a favorable backdrop for UBS’s capital increase, as the fund seeks to capitalize on emerging opportunities.
In conclusion, the UBS (CH) Property Fund – Swiss Mixed Sima's upcoming capital increase is a strategic move aimed at strengthening its portfolio and enhancing its market position. With a clear plan for the utilization of funds, the fund is poised to navigate the complexities of the real estate market effectively.
