17 office properties from three funds successfully sold
Attractive prices achieved for each fund
TSavills Fund Management GmbH, a subsidiary of Savills Investment Management, has concluded a sales contract for a real estate portfolio comprising 17 properties. The selling price achieved is EUR 630 million. Wealth Management Capital Holding AG won through as buyer in a structured bidding process. The Munich-based investment manager administers real estate assets of around EUR 9.2 billion.
The real estate portfolio comprises around 256,000 square metres of rentable space and consists exclusively of office properties situated in Germany's metropolitan areas. With a letting rate of around 90% and an average unexpired lease term of around five years, it has been possible to stabilise the properties through asset management activities and thus create favourable conditions for the sale of the buildings.
Through the strategy of bundling real estate assets into smaller portfolios focused on usage categories and geographical priorities, Savills Fund Management is satisfying the increased demand of investors. Office space is especially popular on the market at the moment since investors see a stable and positive macroeconomic trend in Germany that will also persist in the long term, a development that entails a correspondingly high occupier demand. The portfolio was introduced onto the market in June 2016, where a noticeable upturn can be observed.
The properties come from three open-ended real estate funds in liquidation. Ten properties are part of the SEB ImmoInvest portfolio, six belong to the SEB ImmoPortfolio Target Return Fund, and one office building is an element in the SEB Global Property Fund. For each fund, an attractive price could be achieved in total. Ownership of the buildings will be transferred once the required closing conditions are fulfilled, whereby the purchase is still subject to approval by the German Federal Cartel Office.
The seller was assisted in the transaction by DLA Piper and BNP Paribas Real Estate.