Commercial property fund pools 4.8 billion Swiss francs

UBS plans to merge its commercial property funds, Swissreal and Interswiss, by the end of 2026. The aim is to create a listed fund comprising around 140 properties and assets totalling 4.8 billion Swiss francs, whilst the final terms of the transaction are not expected to be finalised until mid-March 2027.

This move follows a long-planned reorganisation of the Swiss property fund sector. Following its acquisition of the Credit Suisse fund organisation, UBS had already announced in November 2024 that it would merge two listed commercial funds with indirect property holdings between 2026 and 2027. Swissreal and Interswiss are now set to be merged at the end of 2026 to form a single fund under the name UBS (CH) Property Fund – Swiss Commercial ‘Swissreal’. According to the published information, the investment strategy will remain focused on commercially used properties in urban centres and their surrounding areas. For the market, this means further consolidation in the segment of large listed Swiss property funds. 140 properties in a single vehicle Following the merger, the vehicle is expected to comprise around 140 properties and have total fund assets of 4.8 billion Swiss francs. This increases the vehicle’s clout within the commercial property sector and creates a portfolio that bundles office, retail and mixed-use sites within a single structure. For institutional and stock market-oriented investors in particular, this makes the consolidation within the commercial property segment even more pronounced. Both funds are already clearly positioned in the market. According to the UBS product page, Interswiss had a market value of 2,476 million Swiss francs across 54 properties as at 30 September 2025. According to UBS product information, Swissreal has a market value of CHF 2,217.6 million. The scale of the announced merger is therefore in line with the stated target volume of CHF 4.8 billion. The next step is approval by the supervisory authority According to the announcement, the amended fund deeds have been submitted to the supervisory authority. The merger has therefore been announced, but has not yet been finalised from a regulatory perspective. UBS expects to publish the specific terms of the transaction in mid-March 2027, alongside the financial statements for 2026. For owners, investors and market observers, one thing is particularly clear: consolidation in the Swiss commercial property fund sector is continuing. It remains to be seen, for the time being, what the exchange ratio will be for the merger of the units and whether UBS will make further adjustments to the portfolio.