SEB ImmoInvest’s unit price will drop by EUR 0,11 on the 21 March 2017 publication date, falling from EUR 18,33 to EUR 18,22.

The change is largely due to the reappraisals of a property in Italy and four properties in the Netherlands.

The property in Tavagnacco (Udine), which consists of a supermarket and a shopping mall, was constructed in 1993. The entire area is leased to a single tenant, which is entitled to sublease the space in the shopping mall. The competitive situation in the surrounding area means that leasing is difficult and the vacancy rate is high. The appraiser reflected this in the appraisal by using lower sustainable market rents for the retail space and increasing the discount rate.

The market environment for the four Dutch properties remains difficult, with continuing high vacancy rates. The appraiser took this into account by, among other things, increasing the discount rate and adjusting both the sustainable rent and the vacancy costs.