SEB ImmoInvest’s unit price will drop by EUR 0.35 on the 7 March 2017 publication date, falling from EUR 18.68 to EUR 18.33.

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

The complex in Rome, which comprises five office properties and two ancillary buildings, was constructed successively between 1975 and 1982 for a globally well-known multinational, which was the single tenant. The current lease expires on 31 August 2018 and the tenant will probably move out of the complex for strategic reasons, despite the fact that all the buildings were refurbished between 2009 and 2015. The appraiser increased the discount rate by 50 basis points to reflect both the short remaining term of the lease and the expected lower market rent.

In the case of the property at ul. Fabryczna 5, 5a in Warsaw, the persistent/increasing vacancy rate, the fall in rental levels and the volume of new builds in Warsaw led to a decline in the sustainable rent and to an increase in 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 the sustainable rent and the maintenance and vacancy costs.