TL;DR
- UBS Real Estate GmbH gave notice on 24 September that it ends its management of UBS (D) Euroinvest Immobilien, so redemptions are permanently excluded and investors are paid only from liquidation (test.de).
- Wertgrund WohnSelect D, a residential fund of about 1,700 flats, suspended redemptions on 15 January 2026 for up to 36 months, which is a pause and not a wind-down (Wertgrund; REFIRE).
- BaFin's president said, as fundresearch.de reported in March, that there is an elevated risk, especially at smaller funds, while Scope data showed average liquidity of 15.2% across 26 funds against a 5% minimum (fundresearch.de).
What happened to Wertgrund?
Wertgrund WohnSelect D suspended redemptions under section 257 of the German investment code (KAGB) from 12:00 on 15 January 2026, for up to 36 months. The company says that is the statutory maximum and that it explicitly aims not to use it in full (Wertgrund).
Its stated reasons are sale proceeds that are hard to plan, longer transactions, tighter buyer financing and redemption volumes that remain high across the industry. Two property sales could not be completed as planned in the second half of 2025, which the company attributes to the market environment, and a payout planned for August 2025 was postponed (Wertgrund).
REFIRE, citing the fund, reports:
- net assets of about EUR 290m and about 1,700 flats;
- EUR 147.5m paid out since rates began to rise (the company itself states about EUR 145m returned in recent years);
- pending redemption requests of about 21%;
- gross liquidity of 7% as of August 2025.
All four come from REFIRE. REFIRE also describes it as the first provider of an open-ended public real estate fund to suspend redemptions since the interest-rate turnaround. That is REFIRE's framing and it carries a qualifier: UBS froze two funds in 2008, Kontinente Immobilien and Euroinvest Immobilien, for six months (Property Week).
Which other funds paused?
Two more suspensions followed.
- Fokus Wohnen Deutschland
The fund, managed by Industria, suspended redemptions on 26 February 2026. It had sold 10 properties for EUR 163m since 2024 (MTR Legal; REFIRE).
- UBS (D) Euroinvest Immobilien
The fund suspended from 25 March 2026 because it lacked liquid funds. Börsen-Zeitung put its volume at about EUR 400m at the end of March, liquidity at EUR 39.5m as of 31 August 2025 and the office share at just over 85% (Börsen-Zeitung). REFIRE gives a higher net value of about EUR 460m, so the two figures should be read with their sources (REFIRE).
Why is Euroinvest different?
A suspension is temporary. A notice of termination is not.
UBS Real Estate GmbH's letter is dated 24 September. Redemptions and issue are now permanently excluded, BaFin has been informed, and investors receive money only from liquidation, with no timetable. test.de notes that, in its experience, such wind-downs can take several years (test.de).
The same article calls Euroinvest the second open-ended fund closed this year, after KanAm Grund Leading Cities Invest, and the first office-heavy open-ended property fund to suspend redemptions, after two residential funds (test.de). We have not seen a second source for the KanAm closure.
We found no report of a resumption of redemptions or of a wind-down at Wertgrund. The fund's own site still carries the January suspension notice, and the latest fund news we found is a sale: konii.de reported on 4 August that WohnSelect D had completed the sale of 252 flats in Bielefeld for EUR 46m, which lifts sales since May 2024 to EUR 142.95m (konii.de).
Where does the liquidity test fall?
The sector as a whole looks liquid on paper. Scope data show net outflows of EUR 7.6bn in 2025 (EUR 5.9bn in 2024) and average liquidity of 15.2% across 26 funds at the end of January 2026, against a legal minimum of 5% (fundresearch.de).
BaFin president Mark Branson told Süddeutsche Zeitung, as fundresearch.de reported on 9 March, that further closures cannot be ruled out. According to that report there is an elevated risk, especially at smaller funds, and Branson called open-ended property funds "legitimate products" (fundresearch.de).
The three funds above are residential or office-heavy. Branson did not name any fund, and the sources do not say which funds could be next. We name none.
What to watch
- Wertgrund
Whether further sales lift liquidity enough to reopen redemptions inside the 36 months.
- Euroinvest
The pace and timetable of the liquidation, which the manager has not published.
- Disclosure
Whether liquidity ratios and sales progress at smaller funds are reported more often and in more detail.
- Reader view
How German and European institutional buyers read the sale prices these funds achieve.
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