UBS launches new UK investment fund

The Swiss-based financial services firm already has acquired two UK properties on behalf of the £193 million value-added and core fund.

UBS Global Asset Management’s global real estate business has created a new £193 million (€230 million, $304 million) fund to target core and value-added properties in the UK. The fund, known as Investment Circle UK (IC UK), already has made its first investments, acquiring two retail assets in Havant and Bolton for a combined value of £43 million.

An equity mandate from UBS Wealth Management’s private investors, the IC UK fund will invest primarily in core and value-added commercial real estate assets in the UK and has a further £150 million in equity to be deployed. Once fully invested, the fund is expected to be allocated 40 percent to central London office properties, 40 percent to UK retail assets and 20 percent to certain UK refurbishment schemes. UBS currently is assessing additional purchases.

In mid-January, the IC UK fund purchased Central Retail Park for £22.3 million. Constructed in 2007, the property is Havant’s largest retail park and is situated immediately next to the town centre. It is a modern complex with approximately 86,000 square feet of floor space spread across four retail warehouse units. The property is fully leased to a mix of seven retail outlets anchored by Wickes and has an unexpired lease term of 14.5 years.

The fund also acquired Bolton Gate Retail Park for £20.5 million. Completed in 1998, Bolton Gate is a retail warehouse park offering roughly 131,000 square feet of retail space. It is well secured with nine tenants and has an unexpired lease term of more than 12 years.

”We are pleased to have launched the IC UK fund with two high-quality retail assets with strong income streams,” said Anthony Shayle, UBS’ head of global real estate for the UK, in a statement. “We look forward to securing other suitable opportunities for this mandate over the course of 2012.”