SEB ImmoInvest real estate fund to be dissolved (DE)

In order to safeguard the interest and equal treatment of all the fund-holders in SEB ImmoInvest, it has been decided that SEB ImmoInvest will be dissolved as of April 30, 2017, at the latest.

SEB ImmoInvest, a German real estate fund with 132 property investments and total assets of €6 billion, is managed by SEB's asset management company in Germany, SEB Investment GmbH. SEB ImmoInvest has since it was launched in 1989 been one of the best performing German real estate funds with an average annual return of 5.2%.

Following the dislocations in the markets during the financial crisis in 2008 and 2009, the liquidity in the fund was hampered. Thus, in order to safeguard the equal treatment of all fund holders, SEB ImmoInvest was closed for redemptions in May 2010, just as the case for many other German real estate funds.

An attempt to reopen the fund was made on April 26. In order to secure the continuation of the fund and safeguard the investors, an amendment of the fund's terms and conditions was then made offering the investors a limited redemption of their holdings as of May 7, 2012. The offering was conditional upon that the liquidity of the fund could be secured.

Unfortunately, this did not materialize and thus the fund will now be dissolved. Fund holders will receive a first pay-out of approximately 20% of the assets in June 2012. This will be followed by semi-annual redemptions as the real estate divestments are realized.

Source: Thomson Reuters

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