Savills IM sells student residences in Tallahassee

Savills Fund Management GmbH, who is engaged to implement the further liquidation of SEB ImmoPortfolio Target Return Fund, has sold the last two properties as a portfolio deal. Both student residences were held indirectly via a real estate company, on which the fund holds a 90 percent stake. An USA real estate company was the successful candidate in the structured bidding process. The purchase price is with EUR 17.1 million beyond the latest market values of EUR 24.2 million; this reflects the competitive situation in Tallahassee, which has become fiercer due to new student residences in the immediate vicinity. The both residences at 2700 West Pensacola Street and 235 Ocala Road South in Tallahassee, USA, were transferred to the buyer on 22 September 2017. The unit price will drop by EUR 1.06 on the 26 September 2017 publication date, falling from EUR 39.35 to EUR 38.29 as a result of the recognition of the effects of the sale.

Thereby the fund has just three properties in Poland still in its portfolio, which were already sold within the pan-European portfolio transaction: Szturmowa 2 and Ulica Domaniewska 49 both in Warsaw and Aleja Pilsudskiego 22 in Lodz. The transfer of risks and rewards of ownership to the buyer is expected to occur within the next weeks.