SEB ImmoInvest’s Fund management team has used the current market window and sold the property at 2 St. Philips Place, Birmingham. The office building is located in the West Midlands city’s central business district (CBD) and was acquired for the Fund in December 2009. It was constructed in 2002 and has approximately 5,900 square metres of space, which are let to the Royal Bank of Scotland.

The selling price was below the most recent appraisal value of approximately EUR 38 million. The key factors determining the selling price that was negotiated were a break option in the lease and the changed economic conditions in the run-up to Brexit. The Fund management team used the momentum provided by the renewed upturn in transaction activity on the market to sell the property.

As a result, the transfer of the risks and rewards of ownership associated with the building has negatively impacted the Fund’s performance. The Fund’s unit value will decline from EUR 18,75 to EUR 18,68 on 2 March 2017, a drop of 7 cents.