UBS Sima to raise EUR 370m for acquisitions

Swiss fund manager UBS said it will seek to raise up to CHF 530 mln (EUR 370 mln) for its Sima property fund to finance acquisitions. The operation, which will take place from 22 to 30 April, is the first capital hike carried out by the fund since 2002.

UBS said that it will issue a total of 49 million new shares at a price of CHF 75.60 per share. 'The bulk of the issue proceeds is being used to finance ongoing construction projects,' the company added. The remainder will be used 'to buy additional properties, finance additional new construction projects and to repay loans'.

With CHF 5.5 bn of assets, Sima currently ranks as Switzerland's biggest real estate investment vehicle by market size. Over the past months, the vehicle has acquired a number of construction projects at prime sites in the Lake Geneva, Bern, Zurich and Basel regions. The developments are set for delivery in the next two years and were acquired for a total of CHF 500 mln.