Credit Suisse has announced that it will not be proceeding with its planned initial public offering (IPO) for its Credit Suisse 1a Immo PK real estate fund. The decision was made as a result of low trading volumes for listed Swiss real estate funds.
The bank, which is now a part of UBS Group, stated that Credit Suisse Funds has opted not to go ahead with the IPO, which had been scheduled for the fourth quarter of 2023. This development will allow the newly formed real estate unit within UBS Asset Management to focus on coordinating its real estate investment services.
Credit Suisse explained that the decline in trading volumes for listed Swiss real estate funds would have resulted in increased volatility if the IPO had proceeded. Last year, the bank had already postponed the IPO due to market conditions and high volatility.
This decision highlights the challenges faced by Credit Suisse in executing its IPO plans for the real estate fund. The bank’s concerns about trading volumes and volatility indicate the need for a more stable market environment for successful listing.
In light of this development, UBS Asset Management can now concentrate on providing real estate investment services without the distraction of an IPO. This will allow the newly formed unit to devise strategies that are aligned with investor demands and market conditions.
It remains to be seen whether Credit Suisse will revisit its IPO plans for the Credit Suisse 1a Immo PK real estate fund in the future, depending on improved market conditions and increased trading volumes.
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– Article by Adria Calatayud