UBS Direct Residential plans CHF107m capital increase

Anna Fedorova
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UBS Direct Residential, a property investment arm of UBS, plans a capital increase of around CHF107m (€88m) in a bid to increase its share capital.

UBS Direct Residential, a property investment arm of UBS, plans a capital increase of around CHF107m (€88m) in a bid to increase its share capital.

The funds attained will be used to pay for various projects, such as the acquisition of real estate holdings, financing of new construction projects and debt repayments.

Existing shareholders will be able to subscribe to additional shares on the Swiss stock exchange between October 18 and 24.

Over the past few months UBS Direct Residential has undertaken various projects and made acquisitions for the real estate portfolio worth around CHF100m in total.

It has been favouring properties situated in top locations around Switzerland, such as Zurich, Bern, Aargau and Solothurn.

Back in August UBS announced plans to launch a new real estate fund in the fourth quarter. The fund would invest directly in all parts of Switzerland, predominantly in urban regions with growth potential.

UBS Direct Residential was formed in 2006 to invest in property in German speaking Switzerland. Nearly 70% of its holdings are in residential properties. The net asset value is CHF310m.