SEB ImmoInvest is now in an advanced stage of liquidation. Around EUR 4.8 billion, or around 80% of Fund assets upon termination of the management mandate in May 2012, has already been paid out to investors. Of the original 135 properties in 18 countries (reporting date: 31 May 2012) at the beginning of the liquidation period, the current portfolio still includes 2 properties in Germany.
The property in Lurgiallee in Frankfurt am Main was sold at the end of April. The Fund therefore still holds two retail properties in Hagen. These are in the process of being marketed. Investors are currently examining the properties in more detail.
The crisis triggered by the Covid-19 pandemic has not left SEB ImmoInvest unscathed: retailers and restaurants, which have been severely affected by the restrictions, are already feeling the effects and some are asking for assistance with rental costs. Tenants are postponing the rental of new space because it is currently difficult to assess the short to medium-term economic development. On the buyer side, travel restrictions and economic uncertainty are delaying the rapid implementation of transactions. Savills IM is therefore in a continuous exchange with tenants, property managers, all other service providers and potential buyers in order to find the best possible solutions for the benefit of tenants and investors.
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 last transactions can be concluded. For this reason, reserves have been built up or appropriate risk provisions have been made. As at 31 March 2020, the fund held approximately EUR 1.5 billion directly or via companies. EUR 300 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 every six months.
The custodian bank and Savills Investment Management will continue to provide information on the ongoing fund liquidation. A liquidation report will be prepared once a year. Your contacts at Savills Investment Management will continue to be available for information on the fund.