UBS Direct Residential plans capital increase
UBS intends to carry out a capital increase with subscription rights for its real estate fund UBS Direct Residential from October 18 to 26.
The fund management company intends to issue up to 6.638 million new units in UBS Direct Residential at a subscription price of CHF 14.10. The issue has a volume of around 94 million units. The issue thus has a volume of around 94 million.
Five fund units entitle the holder to subscribe to one new unit. At the end of the subscription period, subscription rights that are not exercised expire worthless. From October 18 to 24, official trading in subscription rights will take place on the SIX Swiss Exchange. The new units will be paid on November 2.
A large part of the issue proceeds will be used for acquisitions and new construction projects in the regions of Zurich, Aargau, Bern and Solothurn.
UBS Direct Residential invests primarily in residential properties in German-speaking Switzerland, with investments concentrated in larger cities and selected conurbations. The portfolio currently comprises 63 properties with a volume of around 600 million. The properties are held in direct land ownership. In fiscal year 2017/2018, the fund generated an investment return of 4.9 percent. (ah)
