On 26 January 2021, SEB ImmoInvest will distribute EUR 0.50 per unit to investors. This corresponds to a total of around EUR 58 million. With the 18th distribution since the announcement of the dissolution of the fund, the amount paid out during the liquidation period totals EUR 4.9 billion, or around 82.6 % of the fund assets, upon termination of the management mandate in May 2012.
The liquidity for the distribution comes among other things from the latest transaction, in the context of which the two remaining properties Volme Galerie and Stadtfenster in Hagen could be sold with a negative effect on the unit value. With the disposal of the two properties, all 135 properties in 18 countries with which SEB ImmoInvest started in its liquidation period have now been sold (reporting date: May 31, 2012).
The sale of the remaining two properties was below the most recently determined market value. Letting of the Volme Galerie, which currently has a significant vacancy rate, continued to be difficult. Most recently, one of the largest tenants had to file for insolvency due to market conditions, and other users postponed the leasing of new space or the extension of contracts due to the difficulty in assessing economic developments. At the same time, Hagen faces intense competition from other locations in the immediate vicinity, such as Dortmund, Bochum and Wuppertal.
SEB ImmoInvest currently still holds five companies that will remain in existence until all warranty obligations from the respective sales have expired. According to the current state of knowledge and expertise, it will take several years before SEB ImmoInvest can be wound up finally, as the Fund must maintain sufficient liquidity to cover all costs and potential obligations even after the sale of all properties. For this reason, reserves have been built up or appropriate risk provisions have been made.
After the distribution, the fund holds around EUR 215 million in liquidity as reserves for tax risks and, to a lesser extent, for risks from property sales and from existing or future operating liabilities. The tax risks are spread across the countries in which the fund held properties. The subsequent tax audits are subject to the tax laws of the respective countries and vary greatly in terms of processing time. According to current estimates, they will be reduced on a case-by-case basis until 2023. Liquidity that becomes available will continue to be distributed to investors on a semi-annual basis. The timing and amount of the distributions are determined by the custodian bank.
The respective investor’s custodian will need time to process the pay-out so that the distributed amount will not be credited until a few bank working days after 26 January 2021. The pay-out has a mathematical effect on the unit value of the fund in the value of the distributed amount.
The custodian bank and Savills Fund Management GmbH will continue to provide information on the ongoing fund liquidation. A liquidation report will be prepared once a year.