Exclusive-UBS considers sale of some real estate assets in asset management unit, sources say

By Stefania Spezzati and Amy-Jo Crowley

LONDON (Reuters) -UBS is considering selling portion of its plus absorption part that is mostly focused connected existent property investments, 2 radical with cognition of the substance told Reuters, arsenic the slope looks to revamp the group's smallest concern unit.

The concern country nether reappraisal includes chiefly Swiss existent property assets and, according to 1 of the radical who declined to beryllium named due to the fact that the substance is private, could beryllium worthy little than $1 billion.

In a June revamp of the plus absorption concern nether UBS seasoned Aleksandar Ivanovic, the Zurich-based slope moved immoderate of its existent property assets into a caller portion wherever it is bringing unneurotic plus absorption and wealthiness products.

Real property investments near extracurricular of the caller portion are being considered for sale, the idiosyncratic said.

Earlier this year, imaginable acquirers approached UBS bankers including Joseph Azelby, planetary caput of existent assets, to research a deal, the idiosyncratic said.

A spokesperson for UBS said the slope has important maturation ambitions for its plus absorption division. "Asset Management is investing successful its differentiated and scalable existent plus capabilities, including its starring Swiss Real Estate business," the spokesperson said.

The disposal would people the latest effort by UBS to streamline its concern successful the aftermath of its 2023 takeover of Credit Suisse.

UBS' plus absorption concern swelled to $1.7 trillion pursuing the acquisition of Credit Suisse, from $1.1 trillion successful 2022, the Swiss bank's filings show.

In February, Chief Financial Officer Todd Tuckner told analysts, without elaborating further, that the slope is considering "exits of non-strategic businesses" to amended the profitability of the plus absorption unit.

UBS acquired Credit Suisse successful a government-orchestrated rescue and has since been integrating businesses of its erstwhile rival and disposing of unwanted assets. Last twelvemonth it sold Credit Suisse's securitised products Group to Apollo Global Management.

About 8% of the $1.7 trillion nether the plus absorption portion is invested successful existent property and backstage markets, according to a UBS presumption earlier this year.

Swiss existent property has been performing amended than planetary existent property assets, benefiting from little involvement rates.

Wealth absorption remains UBS' flagship business, making up much than fractional of full revenue.

(Reporting by Stefania Spezzati and Amy-Jo Crowley successful London; further reporting by Oliver Hirt and Andres Estebaran Gonzalez. Editing by Anousha Sakoui, Kirsten Donovan)