Capital increase for UBS Direct Urban
UBS Direct Urban plans to raise around CHF 86 million. The fresh money will be used to finance acquisitions, among other things.
UBS has announced a capital increase with subscription rights for the real estate fund UBS (CH) Property Fund - Direct Urban. The issue will take place between October 22 and 30, 2020. A maximum of approximately 7.2 million new units will be issued at a subscription price of CHF 11.95 each with a subscription ratio of 1:4.
The fund intends to use the capital to finance the acquisition of a mixed-use property on Multergasse in St. Gallen (12 million investment volume), a mixed-use property on Leonhardsberg in Basel (8 million investment volume) and a
commercial property on Freiestrasse in Zurich (15 million invested), the new construction of the "Residenza Morettina" residential property on Via Romerio in Locarno (12 million invested) and the replacement of a residential property on the Leonhard-Ragaz-Weg/Goldbrunnenstrasse in Zurich-Wiedikon (57 million investment volume).
The remaining proceeds from the issue will be used to purchase additional properties, finance refurbishments and construction projects, and repay debt financing, UBS says.
In total, UBS Direct Urban holds 19 properties in its portfolio with a volume of approximately 487.4 million.
