Since its takeover of Credit Suisse, UBS Group has taken actions to close out risky positions. That it decided to liquidate the CS Real Estate Fund International should be no surprise, as Reuters reported. But the reason — at 83% of held assets, an overinvolvement in office properties — is a sign of the times.

The Credit Suisse Real Estate Fund International had total net assets worth about $2.17 billion at the end of June 2024. Reuters said that during 2023, the fund's value had fallen "significantly." Bloomberg noted that the presence of other properties in the fund was 5.5% parking, 4.7% retail, 3.6% warehouses, 2.7% hotels, and 0.3% residential. Country exposures were the U.S., 22%; Germany, 16.3%; Canada,13.7%; 13.0% U.K.; 10.6% Poland; and 24.5%, others.

"The process to sell assets over the past 18 months to meet … redemptions has demonstrated the limited depth of the real estate markets," UBS Fund Management in Switzerland said, as cited by Reuters.