UBS has gated its Euroinvest European real estate fund, blocking withdrawals for up to three years. The Swiss bank cited insufficient liquid assets to meet redemption requests and ensure proper fund management. This move follows a surge in investor redemptions driven by heightened economic uncertainty stemming from the Middle East conflict. €400 million was the fund's size, highlighting the scale of the liquidity strain.

Performance soured after 2022, slumping 9% by February, coinciding with increased outflows. Three years is the longest such suspension in European property funds since the US and Israel launched operations against Iran last month. The gating reflects broader investor anxiety about credit quality in private markets, mirroring actions by US groups like Ares and Apollo. Higher interest rates, potentially triggered by the conflict's inflation shock, further pressure real estate valuations.