ZURICH, Aug 15 (Reuters) - UBS has put a real estate

fund of its former competitor Credit Suisse worth over $2

billion into an "orderly liquidation" as of Thursday, the Swiss

bank said.

The Credit Suisse Real Estate Fund International's total net

assets were worth 1.88 billion Swiss francs ($2.17 billion) as

of the end of June, UBS said. The fund's value had fallen

significantly during 2023, the bank said earlier this year.

UBS acquired Credit Suisse in 2023 after its longtime

rival collapsed amid a string of financial setbacks.

In a statement, UBS said 36% of the fund's total units

in circulation in 2022 had been redeemed by the end of 2023.

"The process to sell assets over the past 18 months to

meet ... redemptions has demonstrated the limited depth of the

real estate markets," UBS Fund Management (Switzerland) said.

UBS said to meet the outstanding 2023 redemptions would

require the sale of the portfolio's most liquid assets at an

"inopportune time" in the real estate market.

This would negatively impact remaining investors,

decrease the attractiveness of the remaining portfolio and thus

be likely to drive further redemptions, it added.

($1 = 0.8654 Swiss francs)