Rule changes for UB Nordic Property Fund (AIF) on December 12, 2023

The board of directors of UB Fund Management Ltd has decided on rule changes regarding the implementation schedule for redemption orders on December 7, 2023. The rule changes aim to safeguard the interests of unitholders and ensure equal treatment in the current operating environment, where several market participants have faced more redemptions than usual in real estate funds. The background to this exceptional situation is the rise in interest rates and a weakened economic situation, which have slowed down trading in the real estate market. By extending redemption notice periods, the goal is to avoid a situation where the fund would have to liquidate its real estate holdings at a disadvantageous price for unitholders.

Following the rule change, unitholders of UB Nordic Property Fund (AIF) must notify UB Fund Management Ltd of their redemption orders six months before the desired redemption date. Redemptions in the last quarter of 2023 will be executed according to the existing rules if the redemption order is submitted in accordance with the existing rules at least one month before the last valuation date of the fund in 2023. After this, the redemption process will take at least six months instead of the previous one month. This means that, following the rule change, the first redemption opportunity in the fund is as follows:

Redemptions with redemption orders submitted to UB Fund Management by March 29, 2024, will be executed at net asset valuations calculated on September 30, 2024. This applies to all redemption orders submitted after November 30, 2023.

In addition to the change in the redemption schedule, fund’s rules have been amended regarding the situation where the fund has to liquidate investments to cover redemption payments. The six-month deadline mentioned in the rules for sales has been removed from the fund’s rules.

The updated rules for UB Nordic Property Fund (AIF) can be found on the fund’s website. The rule changes do not require any action from unitholders. The rule changes will come into effect on January 12, 2024. Further information on the rule changes is available from UB Fund Management Ltd at rahasto@unitedbankers.fi.