SEB Asset Management sold the "Platinum" office building in Shanghai, China from the portfolio of its open-ended real estate fund SEB ImmoInvest for the equivalent of approximately 200 million. The property was sold for 30% more than what it was purchased for in November 2006, exceeding the current market value by more than 7%.
SEB was the first German fund management company to enter the Chinese market at the end of 2006 by acquiring the Class A office building. The move reflected its belief that the market for prime office buildings in Shanghai would appreciate. The deal proves that successful transactions are possible despite the challenging market environment in Asia.
"We have used the market opportunity to realise the appreciation in value for our investors", said Barbara Knoflach, CEO of SEB Asset Management. "China continues to be one of our long-term target markets. In the current financial year, we are aiming to further diversify the portfolio by focusing on new growth in the European core markets of Germany, France and the United Kingdom, plus selective purchases in Asia and the USA."
This is in line with the Fund's investment profile, which favors investments in liquid, established real estate markets. A few days ago, in mid-March 2010, the Company announced the signing of a preliminary contract for the "Claude Bernard A2" office building in Paris. The property, which has been let to BNP Paribas, will be added to SEB ImmoInvest's portfolio on completion in March 2012.