Sales agreements for three properties in Singapore and Japan signed
Transaction for 17 German office buildings completed
Savills Investment Management has signed sales agreements for three properties in Asia. Two of the properties are located in Singapore, the third lies in the metropolitan area of Tokyo. The aggregate market value of all three transactions amounts to around EUR 660 million. The transfer of ownership of the buildings is subject to the customary closing requirements being fulfilled. Further details are subject to a non-disclosure agreement with the buyers.
One of the two properties in Singapore is the office building located at 77 Robinson Road in the Central Business Area (CBD) of the city-state. The property was one of the first investments purchased in 2007 within the Asian region for the open-ended real estate fund SEB ImmoInvest. It is the largest building in the fund in terms of its appraised market value with around 27,245 square meters of rentable space and could be sold slightly below the last determined market value after a holding period of more than ten years.
The second property in Singapore is the "Chinatown Point" shopping centre situated in the Chinatown district. Both SEB ImmoPortfolio Target Return Fund and a special fund of Savills Investment Management each hold a 30% interest in the property. The interest in the project development was acquired in 2010. Subsequently, the building was extensively renovated and repositioned. After reopening, stabilization and a balanced tenant selection, a positive result for both funds could be contractually secured.
The property in Japan is the "Tama Center Building" in the Tokyo metropolitan area. This was purchased for SEB ImmoInvest in 2007. Through intensive letting activities, 98% of the space could be let during the first half of 2016. This enabled the marketing of the property to be started, which has now resulted in the signing of a sales agreement lower than the latest appraised value. The transfer of ownership for the properties is planned for mid-December. The transactions will thus only affect unit value after closing.
At the end of October, Savills Investment Management signed a sales and purchase agreement for a Germany portfolio. The transaction for the real estate portfolio comprising 17 properties with a sales price of around EUR 630 million could be closed successfully on 30 November 2016. The liquidity from the sales accrued to the funds and is influencing their performance: for SEB ImmoPortfolio Target Return Fund, the sale of the Germany Portfolio has a positive result at fund level. For SEB ImmoInvest, the transaction also has a slightly positive impact. The effect will be reduced by transaction costs. For SEB Global Property Fund, the result will be slightly positive as well. The fund will be transferred to the custodian bank on 5 December 2016. Since the beginning of the dissolution period, 17 out of 21 properties could be sold.