As the liquidation of SEB’s flagship ImmoInvest fund gets under way, its competitors are looking for rich pickings. It is easy to see why: ImmoInvest, which targets private investors and has been running for 23 years, has been one of the best performing funds in the sector. Investors who committed to the fund in 1989 received a cumulative return of 225% in 2011, according to SEB AM. Even investors who took the plunge in 1997 received a cumulative return of 75.9%.
As the liquidation of SEB’s flagship ImmoInvest fund gets under way, its competitors are looking for rich pickings. It is easy to see why: ImmoInvest, which targets private investors and has been running for 23 years, has been one of the best performing funds in the sector. Investors who committed to the fund in 1989 received a cumulative return of 225% in 2011, according to SEB AM. Even investors who took the plunge in 1997 received a cumulative return of 75.9%.
According to the BVI, which represents the German mutual fund and asset management industry, the fund generated an average 10-year return of 54.9%.
SEB AM announced on 7 May that it would liquidate ImmoInvest after just one day of trading when it appeared that too many investors wanted to redeem their shares following a two-year freeze. SEB AM now has until April 2017 to wind down the fund, which still contains 132 properties spread across 18 countries and 64 cities, including Germany, the UK and France.
Around 44% of the properties are in Germany, with nearly 11% in France, 10% in the Netherlands, 7.9% in Italy, 8.9% in the US and 5.7% in Singapore. SEB AM’s CEO Barbara Knoflach told PropertyEU that the company is revising its strategic plan 'to decide how best to sell these properties, although we will not make this plan public'.
The full article appears in the June edition of PropertyEU Magazine. Click on the link below to subscribe
