SEB ImmoInvest’s unit value will decline from EUR 2.26 to EUR 2.17 on the publication date
18 August 2020, resulting in a EUR 0.09 price drop.
This is primarily due to the revaluation of the two German properties located in Hagen, named Stadtfenster and Volme Galerie.
Unfortunately, the vacancy rate of the shopping centre Volme Galerie is currently approaching 47 %. Retailers and restaurants have been hit hard by the restrictions caused by the COVID-19 pandemic, which means shopping centres generally like the Volme Galerie. Users are postponing leasing new space or extending existing leases since short- and medium-term economic developments are hard to assess at present. Unfortunately, one of the main tenants went bankrupt and applied for sec. 270b German Insolvency Code regulations to restructure the company to survive. Landlords necessary restructuring share was therefore included in the appraisal and had its negative impact in the revaluation value.
The expert reflected the effect in particular by reducing sustainable rents and increasing the property interest rate.