LONDON (Reuters) -UBS is considering selling part of its asset management division that is largely focused on real estate investments, two people with knowledge of the matter told Reuters, as the bank looks to revamp the group's smallest business unit.

The business area under review includes mainly Swiss real estate assets and, according to one of the people who declined to be named because the matter is private, could be worth less than $1 billion.

 In a June revamp of the asset management business under UBS veteran Aleksandar Ivanovic, the Zurich-based bank moved some of its real estate assets into a new unit where it is bringing together asset management and wealth products.

Real estate investments left outside of the new unit are being considered for sale, the person said.

 Earlier this year, potential acquirers approached UBS bankers including Joseph Azelby, global head of real assets, to explore a deal, the person said. 

A spokesperson for UBS said the bank has substantial growth ambitions for its asset management division. "Asset Management is investing in its differentiated and scalable real asset capabilities, including its leading Swiss Real Estate business," the spokesperson said. 

The disposal would mark the latest effort by UBS to streamline its business in the wake of its 2023 takeover of Credit Suisse.

UBS' asset management business swelled to $1.7 trillion following the acquisition of Credit Suisse, from $1.1 trillion in 2022, the Swiss bank's filings show. 

In February, Chief Financial Officer Todd Tuckner told analysts, without elaborating further, that the bank is considering "exits of non-strategic businesses" to improve the profitability of the asset management unit.

 UBS acquired Credit Suisse in a government-orchestrated rescue and has since been integrating businesses of its former rival and disposing of unwanted assets. Last year it sold Credit Suisse's securitised products Group to Apollo Global Management. 

About 8% of the $1.7 trillion under the asset management unit is invested in real estate and private markets, according to a UBS presentation earlier this year.

Swiss real estate has been performing better than international real estate assets, benefiting from lower interest rates.

Wealth management remains UBS' flagship business, making up more than half of total revenue.