Since 25 March 2026, UBS Real Estate has suspended the redemption and issue of units of the UBS Euroinvest Immobilien fund. The liquid assets are no longer sufficient to fulfil investors’ redemption requests. The fund manages net assets of around 400 million euros, invests primarily in European office properties and already had several properties in the process of being sold. According to the German Investment Code, the suspension applies for up to 36 months.
Three closures in three months
The UBS fund is the first commercial property fund to close between 2008 and 2012 since the major fund crisis. Previously, two funds specialising in residential property had already closed. Wertgrund WohnSelect D in January and Fokus Wohnen Deutschland in February 2026 due to high redemption requests, faltering property sales and a lack of liquidity.
Ten billion withdrawn
Since January 2025, investors have withdrawn a net total of around ten billion euros from open-ended German property funds. Rising interest rates, weak transaction markets and ongoing property devaluations have eroded confidence. Property sales often take longer than six months due to restrictive bank financing, which puts a structural strain on liquidity. The rating agency Scope expects further cash outflows in 2026.
Bafin doubts the risk class
Bafin boss Mark Branson issued a public warning in March 2026. Small funds in particular could not rule out further closures. The supervisory authority also fundamentally doubts the previous risk classification of these products. What was sold to investors for years as a conservative, liquid investment turned out to be much more cumbersome than expected during the crisis.
What investors need to check now
Anyone invested in such funds should closely monitor liquidity reports and sales processes for the properties held. A redemption stop particularly affects those who are dependent on their capital in the short term. Anyone wishing to make a new investment should carefully check the fund size, property quality and holding periods. The crisis clearly shows that openness is not a sign of quality if the market for the properties behind it remains closed.