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UBS Global Asset Management raises GBP 140 million to launch
London (7 January 2014) – UBS Global Asset Management's Global Real Estate (GRE) business announces today the launch of its new UBS Participating Real Estate Mortgage Fund (UBS-PREMF, the Fund), after raising GBP 140 million for the Fund's Initial Close from three institutional investors, including Mitsubishi Corporation.
UBS-PREMF is a new closed-ended UK debt fund seeking to take advantage of the debt financing gap arising from banks scaling back commercial real estate lending over recent years. The Fund will target a wide range of potential borrowers including those needing to refinance their maturing loans and new borrowers seeking finance to invest in the UK commercial property market.
UBS-PREMF will target investors seeking a regular income stream, and will aim to produce a total IRR of 8-10% p.a., with total returns driven by interest from the loan portfolio, plus a share of both rent and capital appreciation from the underlying property assets. UBS-PREMF will lend against property assets in the UK, is structured as an English Limited Partnership, and has a target lifespan of circa 9–10 years including its investment period, being up to 30 months following the Initial Close. Once fully invested, UBS-PREMF will aim for its annual income to form approximately 75% of its total return.
UBS-PREMF has raised GBP 140 million from three investors, including UBS and Mitsubishi Corporation – both acting as Co-General Partners for the new Fund – as well as a major European pension fund.
The Fund will be managed by Anthony Shayle, Head of Global Real Estate – UK Debt and Portfolio Manager for UBS-PREMF. Anthony has 22 years of real estate debt experience and has previously been involved in debt facilities totalling circa GBP 4 billion. Anthony is supported by Lily Lin, who joined as Assistant Portfolio Manager on 1 December 2013. Lily, who previously worked within GRE's European business for seven years and has extensive property and debt experience, will be responsible for originating, assessing and completing loan opportunities for UBS-PREMF. In due course, two Mitsubishi Corporation employees will join the UBS-PREMF team in London on secondment to UBS.
Commenting today, Anthony said: "Following this solid Initial Close of UBS-REMF, the first fund in our debt platform, our efforts will now be focused on the Fund's lending and raising additional equity for follow-on closings later this year. We are targeting borrowers looking for loans in the range of GBP 10-40 million where, according to recent research, there is a shortage of lenders willing to take on these smaller requirements. We are able to look at development and investment prospects across the UK and most sectors."
Thomas Wels, Head of Global Real Estate, commented: "This new initiative follows on from our long-standing association with Mitsubishi Corporation in Japan, now in its fourteenth year. We are now very pleased to add a new UK dimension to this relationship with the launch of UBS-PREMF."
Takajiro Ishikawa, COO of Mitsubishi Corporation’s Asset Management Business Division, added: "This is our firm’s first foray into the European asset management market and this will provide Japanese investors with a differentiated product."
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Global Asset Management
UBS Global Asset Management is a large-scale asset manager with businesses well-diversified across regions, capabilities and distribution channels. It offers investment capabilities and investment styles across all major traditional and alternative asset classes. These include equity, fixed income, currency, hedge fund, real estate, infrastructure and private equity investment capabilities which can be combined into multi-asset strategies. The Fund Services unit provides professional services including fund set-up, accounting and reporting for traditional investment funds and alternative funds.
Invested assets totalled some GBP 396 billion as at 30 September 2013. The firm is a leading fund house in Europe, the largest mutual fund manager in Switzerland 1 and one of the largest fund of hedge funds and real estate investment managers in the world.
With around 3,750 personnel located in 24 countries, UBS Global Asset Management is a truly global asset manager. Our principal offices are in London, Chicago, Frankfurt, Hartford, Hong Kong, New York, Paris, Singapore, Sydney, Tokyo and Zurich.
UBS Global Asset Management’s Global Real Estate business actively manages real estate investments, worth approximately GBP 40 billion in Asia, Europe and the US and across the major real estate sectors, making it one of the top five global real estate investment manager worldwide 2.
Its capabilities include core, value-added and increasingly opportunistic strategies on a global, regional and country basis. These are offered through open and closed-end private (unlisted) funds, fund of funds, individually managed (separate) accounts and publicly traded real estate securities globally.
1 (Lipper / Swiss Fund Data FundFlows September 2013)
2 Assets under management (AuM) stated on gross asset value basis, reflecting property values as at September 30, 2013, where available. Including assets managed by our joint venture with Mitsubishi Corporation, Japan
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