Savills Fund Management GmbH, a subsidiary of Savills Investment Management, has exchanged contracts on the sale of a pan-European real estate portfolio comprising of 42 assets across Germany, the Netherlands, Hungary, Italy, France, Finland and Poland. An entity within the Goldman Sachs Group was the successful candidate in the structured international bidding process. The portfolio has a total of 417,147 sqm lettable area, an average letting rate of 67% and a weighted lease term of 3.8 years.
9 of the assets belonged to SEB ImmoPortfolio Target Return Fund and have an accumulated appraisal value of about 189 million Euro. Of the 9 assets, 2 completed on 30 April 2017 resulting in a drop of the unit value reflecting the sales (news of 3 May 2017). The remaining assets of SEB ImmoPortfolio Target Return Fund are expected to complete in the coming months.
Portfolio sale was best disposal option
The sale of the above assets as a pan-European portfolio achieved better financial outcome for SEB ImmoPortfolio Target Return Fund through efficiency, cost and time savings against the also examined option of single asset disposals. The sale price achieved reflects an open market competitive sale process resulting from the structured bidding process. It reflects the current real estate and financial environment in the various countries together with the individual circumstances of each of the assets such as micro locations or letting situation. After intensive examination, the sale at this point in time is considered the best financial option for SEB ImmoPortfolio Target Return Fund.
Attached please find a list of the properties sold.
Current balance for the dissolution period
With the recently secured portfolio sales, the Fund Management was able to sell 44 of originally 46 assets during the period agreed with BaFin for winding-up SEB ImmoPortfolio Target Return Fund (05 June 2014 to 31 May 2017). The total amount paid to investors since the dissolution of the Fund was announced, amounts to EUR 421 million, or approximately 54% of the value of fund assets since giving notice to terminate the fund management mandate with effect of 5 June 2014.
With effect of 1 June 2017 the remaining fund assets will be transferred to the custodian bank CACEIS Bank S.A., Germany Branch, (CACEIS). The transfer includes all assets for which sales contracts have already been exchanged, but where completion has not yet taken place.
A detailed investor communication will be provided with the transfer of the fund to the custodian bank.