Savills Fund Management GmbH, a subsidiary of Savills Investment Management, has exchanged contracts on the sale of a pan-European real estate portfolio comprising of 42 assets across Germany, the Netherlands, Hungary, Italy, France, Finland and Poland. An entity within the Goldman Sachs Group was the successful candidate in the structured international bidding process. The portfolio has a total of 417,147 sqm lettable area, an average letting rate of 67% and a weighted lease term of 3.8 years.
As part of the portfolio sale, the last 3 assets owned by SEB Global Property Fund with an accumulated appraisal value of 57 million Euro were sold. One of the assets completed on 30 April 2017 resulting in a drop of the unit value reflecting the sales (news of 3 May 2017). The remaining assets of SEB Global Property Fund are expected to complete in the coming months.
Portfolio sale was best disposal option
The sale of the above assets as a pan-European portfolio achieved better financial outcome for SEB Global Property Fund through efficiency, cost and time savings against the also examined option of single asset disposals. The sale price achieved reflects an open market competitive sale process resulting from the structured bidding process. It reflects the current real estate and financial environment in the various countries together with the individual circumstances of each of the assets such as micro locations or letting situation. After intensive examination, the sale at this point in time is considered the best financial option for SEB Global Property Fund.
The Netherlands, Arnheim, Kroonpark 6
Poland, Warsaw, "Grójecka 5", Grójecka 5
Poland, Gdansk, "Arkonska Business Park", Ulica Arkonska 6
Current balance for the dissolution period
With the recently secured portfolio sales, the Fund Management was able to sell all 20 assets of the SEB Global Property Fund since the dissolution of the Fund was announced on 5 December 2013. The total amount paid to investors, amounts to EUR 91 million, or approximately 35% of the value of fund assets.