UBS Direct Residential: Fresh money sought
At the end of October, a capital increase will be carried out for the UBS Direct Residential real estate fund. The issue volume is expected to be CHF 97 million.
With a subscription ratio of 1:6, 6.64 million new shares in UBS Direct Residential are to be issued at a subscription price of CHF 14.65, according to UBS. The issue thus has a volume of approximately CHF 97 million. The subscription period runs from 21 to 29 October 2021, and official rights trading on the SIX Swiss Exchange will take place from 21 to 27 October. The payment and delivery of the new shares as well as the publication of the issue result are scheduled for 5 November.
In the 2020/2021 financial year, UBS Direct Residential increased rental income by 1.7m to 34.5m, partly due to a reduction in the rental default rate of more than 20%. Thanks to refurbishment and new construction projects, acquisitions in urban locations and upgrades to existing properties, the value of the property portfolio rose by 70 million to 803 million. The return on investment amounts to 4.9%. (ah)
