Understanding UBS Real Estate and Its Impact

UBS Real Estate is a global leader in real estate and real assets, with a presence in 14 countries and over $100 billion in assets under management.

The company's real estate business focuses on providing investment solutions to institutional clients, including pension funds, insurance companies, and sovereign wealth funds.

UBS Real Estate has a long history of investing in real estate, dating back to the 1950s.

One of the key areas of focus for UBS Real Estate is sustainability, with a goal of reducing greenhouse gas emissions from its portfolio by 50% by 2030.

The UBS Real Estate business is a global leader in real estate and real estate finance, with a presence in over 20 countries.

With over $100 billion in assets under management, UBS Real Estate has a significant presence in the global real estate market.

They offer a range of services, including investment management, asset management, and real estate finance, to institutional and private clients.

Their expertise spans all major property types, including offices, residential, retail, and logistics.

Our real estate business operates through UBS Realty Investors LLC, a subsidiary of UBS AG, which is organized as a limited liability company and registered with the US Securities and Exchange Commission (SEC) as an investment advisor.

UBS Realty Investors LLC and its predecessors have been registered with the SEC since January 5, 1994, under the Investment Advisers Act of 1940, as amended.

We offer a range of solutions across the risk/return spectrum, from core to value-add and opportunistic strategies, providing clients with both direct real estate and infrastructure equity and debt investments or indirect exposure to leading real estate, infrastructure, and private equity managers.

Our diverse product range includes open- and closed-ended private funds, investment trusts, listed funds, REITs, and bespoke separately managed accounts, catering to various client needs and preferences.

UBS is committed to expanding its real estate and private markets business, building on its global scale and leading capabilities, including sustainable-investing and specialized-thematic offerings.

The bank has a strong focus on sustainable and impact investing, with new net-zero ambition products being developed in 2023 to meet the growing demand from wealth management clients.

Expand your knowledge: Private Equity Real Estate Investments

UBS Realty Investors LLC has a rich history that dates back to the real estate investment advisory business of Aetna Realty Investors, Inc.

Aetna Life Insurance Company sold its real estate investment advisory management business to Allegis Realty Investors LLC in June 1996, marking a significant turning point for the company.

In 1999, UBS acquired Allegis Realty Investors LLC and renamed it UBS Realty Investors LLC, expanding its presence in the real estate investment market.

The existing US real estate advisory business of UBS Asset Management was integrated into UBS Realty Investors LLC in January 2001, further solidifying the company's position.

In February 2003, UBS Asset Management separated its real estate businesses in various regions from its traditional investments business and combined them into the Real Estate platform, increasing the company's global reach.

Today, UBS Realty Investors LLC is most active in the Americas, APAC, and Europe, with a strong presence in these regions.

In 2023, global real estate performance was set against a weak economic backdrop of prolonged high inflation, sharp rises in interest rates, and looming fears of recession. This led to subdued transaction activity as the mismatch in price expectations between buyers and sellers and uncertainty over the outlook continued to hold back deals.

Interest rates are expected to get cut and start to feed through to property markets, leading to improved performance in the second half of 2024. We're most cautious on offices, which are seeing a strong bifurcation in terms of quality and location due to the shift towards hybrid working.

Investors may still find upside by adding industrial exposure, though increasing debt cost and compressing cap rates have put more focus on rental growth expectations. The industrial sector powered through sustained supply chain bottlenecks and economic headwinds, posting solid demand which has kept pace with supply.

Long-term tailwinds continue to favor the life sciences sector, but current market conditions might cause temporary disruptions. Economic uncertainties have weighed on venture capital funding, which decelerated from record levels in 2021.

US multifamily is experiencing a high rate of new supply growth, which has weakened rent growth and pushed up vacancy. Construction levels should ease in 2025, and long term, a housing supply shortage supports fundamentals.

At UBS Real Estate, sustainability is a top priority. We believe that responsible ownership and operation of real estate can have a significant positive impact on the environment.

Climate change, energy needs, and water scarcity are among the biggest challenges of our century. Buildings contribute significantly to CO2 emissions and the consumption of natural resources.

We operate with a comprehensive approach to environmental and social factors, and to corporate governance across each of the investment disciplines. This approach is integrated into our corporate, fund, and asset-level decisions.

Our commitment to sustainable investing is reflected in our rigorous vetting of the environmental, social, and governance (ESG) aspects of the assets we invest in. We continue to monitor the ESG impact of these assets throughout their life.

We've received recognition for our efforts, with GRESB ranking our equity strategies #1 and #3 in their peer group. We've also received an A+ rating from the UN-supported Principles for Responsible Investment (PRI).

Here are some key highlights of our sustainable investment approach: