Ever since its launch in October 2001, the SEB ImmoPortfolio Target Return Fund (DE0009802314) has generated a spectacular average investment performance of 8.5% p. a. In the past financial year (January 1, 2008 to December 31, 2008), the global open-ended real estate fund recorded a performance of 7.1% with its "core plus" investment strategy. A total of €26.6 million, or €6.00 per unit, will be distributed, with 54.6% of this amount being income tax free for private investors.
"We have maintained the Fund's successful course even in the current difficult market environment," said Barbara A. Knoflach, Managing Director of SEB Investment GmbH and CEO of SEB Asset Management AG, summing up the course of business at the SEB ImmoPortfolio Target Return Fund.
The Fund's assets as of December 31, 2008 amounted to €553.3 million, an increase of €184.7 million as against the prior-year reporting date. At €178.6 million, net inflows of funds were up approximately 250% as against 2007: "This is a massive vote of confidence on the part of our investors", according to Knoflach.
As of the financial year-end, the portfolio comprised twelve equity interests and 25 directly held properties, corresponding to property assets of €821.8 million (end of 2007: €593.3 million). The Fund's management has systematically built up the real estate portfolio with the acquisition of twelve properties, six of which have already been added to the Fund. Following the SEB ImmoPortfolio Target Return Fund's entry on the Malaysian and UK markets, its real estate portfolio has now been diversified to eleven countries. Measured in terms of market values, the main regional focus as of December 31, 2008 was on Germany (33.8%), followed by the USA (14.2%) and Poland (13.3%).
The Fund is excellently positioned even in periods of economic weakness. This can be seen from the high occupancy rate of 95.2% and the highly diversified structure of the total of 2,405 leases. In addition, the Fund consists exclusively of highly competitive properties that are well positioned on the market. What is more, conditions for expanding the portfolio are favorable: the price corrections seen in the majority of countries have led to a clear rise in initial yields for long-term properties. At the same time, the number of bidders for attractive properties has declined, since loans are primarily being granted to equity-rich investors such as SEB Investment GmbH. "We have laid the groundwork for generating aboveaverage returns for our investors in the future, too," said Knoflach.
Source: SEB Asset Management
