Exclusive: UBS considers sale of some real estate assets in asset management unit, sources say
LONDON, March 13 (Reuters) - UBS (UBSG.S), opens new tab is considering selling part of its asset management division that is largely focused on real estate investments, two people with knowledge of the matter told Reuters, as the bank looks to revamp the group's smallest business unit.
The business area under review includes mainly Swiss real estate assets and, according to one of the people who declined to be named because the matter is private, could be worth less than $1 billion.
In a June revamp of the asset management business under UBS veteran Aleksandar Ivanovic, the Zurich-based bank moved some of its real estate assets into a new unit where it is bringing together asset management and wealth products.
Real estate investments left outside of the new unit are being considered for sale, the person said.
Earlier this year, potential acquirers approached UBS bankers including Joseph Azelby, global head of real assets, to explore a deal, the person said.
A spokesperson for UBS said the bank has substantial growth ambitions for its asset management division. "Asset Management is investing in its differentiated and scalable real asset capabilities, including its leading Swiss Real Estate business," the spokesperson said.
The disposal would mark the latest effort by UBS to streamline its business in the wake of its 2023 takeover of Credit Suisse.
UBS' asset management business swelled to $1.7 trillion following the acquisition of Credit Suisse, from $1.1 trillion in 2022, the Swiss bank's filings show.
In February, Chief Financial Officer Todd Tuckner told analysts, without elaborating further, that the bank is considering "exits of non-strategic businesses" to improve the profitability of the asset management unit.
UBS acquired Credit Suisse in a government-orchestrated rescue and has since been integrating businesses of its former rival and disposing of unwanted assets. Last year it sold Credit Suisse's securitised products Group to Apollo Global Management.
About 8% of the $1.7 trillion under the asset management unit is invested in real estate and private markets, according to a UBS presentation earlier this year.
Swiss real estate has been performing better than international real estate assets, benefiting from lower interest rates.
Wealth management remains UBS' flagship business, making up more than half of total revenue.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
24 minutes ago
- Reuters
Canada's Ivey PMI shows activity contracting for a second straight month in May
TORONTO, June 5 (Reuters) - Canadian economic activity contracted for a second straight month in May even as a measure of employment increased, Ivey Purchasing Managers Index (PMI) data showed on Thursday. The seasonally adjusted index edged up to 48.9 last month from 47.9 in April. A reading below 50 indicates a decrease in activity. The Ivey PMI measures the month to month variation in economic activity as indicated by a panel of purchasing managers from across Canada. The gauge of employment rose to an adjusted 51.1 from 48.0 in April, while the prices index was at 66.9, down from 70.0. The unadjusted PMI rose to 53.8 from 52.3.
Glasgow Times
an hour ago
- Glasgow Times
Three Rangers directors leave as club undergoes shake-up
The trio have been replaced by new faces as the club undergoes a shake-up. Their positions on the board will be filled by Americans Mark Taber, Andrew Clayton, and Gene Schneur. The departure of Johnston, Park, and Wolhardt has been officially recorded on Companies House, with all three having their appointments terminated. A new chairman, Andrew Cavenagh, has been appointed, replacing Fraser Thornton, who will remain on the board. Read more: Paarag Marathe has taken on the role of vice-chairman. John Halsted and George Taylor will continue as directors, while chief executive Patrick Stewart remains in his role. The new board members bring a wealth of experience to the club. Mark Taber, a managing director at Boston-based growth equity firm Great Hill Partners, specialises in healthcare investments. Andrew Clayton is co-founder and vice-chairman of ParetoHealth, a health insurance company founded by Cavenagh. Gene Schneur, a board member and co-owner of Leeds United, is the third new face on the board. Their appointments mark a new era for Rangers.
Western Telegraph
an hour ago
- Western Telegraph
Proposed wind turbines could tower over Bluestone resort
In an application to Pembrokeshire County Council, High Wycombe-based Slebech Investments Limited seeks permission for three wind turbines of up to 100 metres height on land at Newhouse Farm, Canaston Bridge, close to the two parks, and close to the border with Pembrokeshire Coast National Park. The proposed site on agricultural land across three fields is some 3.5 kilometres from Narberth, and would be accessed from the A4075 via an existing track opposite Bluestone Resort's service entrance, some 350m south of the main roundabout entrance to Bluestone. The formal application follows an earlier screening request submitted to the council in February, and details of the proposal being sent to local county councillors, community councils and residents. The three 1MW turbines, if granted, would generate electricity equivalent to powering 1,900 homes, the applicants say; power connected to the grid, but explorations are underway for its potential use by local businesses. A supporting statement through agent Sirius Planning said: 'The footprint of the proposed development is modest in scale, with the wider fields and landholding able to continue to operate with minimal impact from the proposal. ' In addition, ecological enhancements implemented in recent years within the landholding will not be impacted by the proposed wind turbine development. The overcall context of the site is rural with the site surrounded to the south and east by agricultural fields and woodland areas. 'To the north is PBE Fuels, Bluestone Resort head office (The Grange) and Newhouse Farm. To the west are agricultural fields and the A4075, beyond which is Bluestone Resort, comprising holiday lodges and leisure amenities, and Oakwood Theme Park. A ground-mounted solar scheme is located to the south-west of the site beyond the A4075.' If granted, the scheme would take some four months in construction, the statement says, with approximately 354 deliveries to the site. It is anticipated that a public consultation event will be held during the planning process, the applicants have said. In the initial screening application, Sirius said the turbines could be used to provide power for Bluestone Holiday Park Resort and/or Oakwood Theme Park. Since the initial application Oakwood has closed, but proposals for a revival have recently been mooted. On that screening application, Sirius said: 'There are no designated or non-designated features within the application site which are protected for their landscape and scenic value. The Pembrokeshire Coast National Park lies to the north and west beyond the Bluestone Resort and Oakwood Theme Park. 'The landscape character already incorporates existing wind turbines and other large vertical structures, such as Oaklands [sic] Theme Park rollercoasters which are existing detractors within the landscape.' On Companies House, Slebech Investments Limited, of West Wycombe Park Office, West Wycombe Park, lists two directors: Sir Edward John Francis Dashwood and Lady Lucinda Nell Dashwood. The proposals will be considered by county planners at a later date.
