UBS Warburg in Frankfurt has launched property share index certificates worth ¬50m which track the performance of Europe’s 15 largest listed property companies.
UBS said a substantial part of the Europa Top 15 Immobilien Index issue has been placed with investors and that due to large demand, an increase of the issue is being considered. The certificates attracted both institutional and private investors.
The weighting of companies in the index is based on their free float capitalisation, as determined by the EPRA Index. The composition of the index will be reviewed annually. To create a diversified portfolio, the weighting of any one company has been restricted to 15%, that of any one country to 40% with a maximum of four companies per country. The certificates expire on June 28 2007. Dividends will be partly reinvested and around one quarter will be retained by UBS Warburg.
