UBS moves into Australia with A$10b venture

[SYDNEY] UBS AG, Switzerland's biggest bank, is entering Australia's property market to invest as much as A$10 billion (S$11.3 billion) over the next five years through a joint venture with a local developer.

The bank, which now only holds property shares in the country, is partnering with Australia's largest closely held builder Grocon Pty to beat a rush of global capital that's seeking a home in its real estate market, said Trevor Cooke, Sydney-based head of Asia-Pacific real estate at UBS.

"There's significant competition in Australia from pools of capital for access to investment-grade stock," Mr Cooke said by telephone yesterday. "The best way to offer our clients realistic solutions is to partner with an originator. The Asia Pacific as a whole is a strategic priority and Australia is one of the most attractive markets in the region."