Investment bank Evercore has been asked to run a structured secondary market process to allow investors in the UBS Trumbull Property Fund to sell their interests in the open-ended US core real estate vehicle.
According to a board meeting document written by investment consultancy Callan for the Marin County Employees’ Retirement Association, limited partners in the fund can sell some or all of their interests for cash to qualified buyers that Evercore assembles. UBS and Evercore did not comment.
The option to sell via the secondary market represents a potentially quicker alternative to requesting a traditional redemption, which can take a long time when investors seek to redeem at the same time from an institutional open-ended fund. The aggregate value of redemption requests for the UBS Trumbull Property Fund reached $10.8bn (€9.21bn), or 60% of its net asset value, in 2024.
UBS Realty Advisors, which manages the fund, is seeking to create liquidity while preserving upside for investors that remain invested in the fund. Investors would need to accept a discount of between 18% and 35% to sell.
According to Callan, the discount range represents a substantial cost to exit the fund at a time when real estate values are showing renewed appreciation. The investment consultancy also said the fund had outperformed the NFI-ODCE benchmark over the past two years.
UBS has recently completed a multi-year disposition plan to reposition the fund, which is now allocated to ‘high conviction’ property types. In mid-2024, it had 41% invested in apartments and 35% in industrial, according to a board meeting document for the City of Sarasota General Employees’ Pension Plan.
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