UBS has halted withdrawals from $469 million real estate fund for up to 3 years

[Fiscal]

UBS has basically locked the gates on their €407 million (~$469M) Euroinvest real estate fund. They're suspending redemptions (withdrawals) for up to 36 months because there's not enough liquid cash to handle all the people wanting their money back. The fund mainly holds office buildings across Europe, and apparently too many investors are trying to bail at once. UBS is calling it "protecting all investors' interests" in this tough market, but it basically means if you asked to pull money out after March 25, you're waiting. Potentially till 2029. And who knows you'll be able to in 2029... I'd be pissed off.

It's the first big one since tensions escalated in the Middle East, and apparently there are similar issues in a few German funds already, with over €130 billion stuck in these vehicles overall.

https://twitter.com/x/status/2037340916952842386

 

[JohnnyDoe]

Well, it’s normal and should be expected from a small RE fund ($400m is indeed small). The fund’s Offering Memorandum certainly provides for such eventuality.
They could of course obtain liquidity quickly without selling the assets, but it would be in fact detrimental for those who remain invested. Plus, fewer assets mean fewer expenses paid for the fund’s executives, which is the whole reason for a fund to exist.