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.
The bulk of the assets (30) were owned by SEB ImmoInvest and have an accumulated appraisal value of 442 million Euro. Of the 30 assets, 17 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 ImmoInvest are expected to complete in the coming months. Further to the above, SEB ImmoInvest also disposed of the Skyline office building in Vienna to KGAL on 1 May 2017.
Portfolio sale was best disposal option
The sale of the above assets as a pan-European portfolio achieved better financial outcome for SEB ImmoInvest 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 ImmoInvest.
Attached please find a list of the
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Transfer of SEB ImmoInvest assets to custodian bank completed
A total of 29 assets were transferred to the custodian bank, CACEIS Bank S.A., Germany Branch with effect of 1 May 2017. Including the recently secured asset sales, the Fund Management successfully completed the sale of 106 assets during the period agreed with BaFin for winding-up SEB ImmoInvest (07 May 2012 to 30 April 2017)
As part of the portfolio disposal, sale agreements were exchanged for 14 of the 29 assets transferred to the custodian bank. Only the completion of the sale agreements for these 14 assets remains outstanding. This is due to take place in the coming months. The sales are however already contractually secured.
The total amount paid to investors since the dissolution of the Fund was announced, amounts to EUR 3.3 billion, or approximately 56% of the value of fund assets since giving notice to terminate the fund management mandate with effect of 7 May 2012. Future distributions are expected to continue to take place twice a year, with the next distribution likely to take place in July 2017.