SEB Asian Property Fund invests in Singapore office property

SEB Asset Management has made another investment in Asia for its recently launched real estate fund SEB Asian Property Fund SICAV-FIS. The fund acquired some 10,310 m² , or 12 floors, of Anson 79, a Grade A office building in Singapore for SGD 215 mln (EUR 102 mln). The 23-storey building is located in the core CBD submarket and has a current occupancy of around 98%. The property was sold by FAM Maximilian Real Estate Investment Fund, a fund managed by Ferrell Asset Management.

According to the statement the deal is part of the company’s strategic expansion in Asia’s real estate markets. The fund already owns a 40% interest in the nearby 37 storey Springleaf Tower as well as an office tower in Shanghai's Puxi district in a 50-50 joint venture with Pacific Star.

'Due to increasing demand on the one hand and limited supply on the other, the office market offers extremely positive growth prospects, which we expect to capitalise through this acquisition,' explained Choy-Soon Chua, managing director of SEB Immobilien-Investment GmbH, SEB Asset Management's real estate investment subsidiary.

D. David Lee, managing director of the Ferrell Group commented: 'The sale signifies strong demand for office/commercial space, especially those found within prime CBD locations. Anson 79 has a good occupancy rate and we expect this to continue in the future. The Ferrell Group is delighted to note that, once again, it has successfully achieved the investment objectives of its managed property hedge fund. The Ferrell Group will continue to search for development and investment opportunities in the commercial sector.'

SEB Asian Property Fund was launched at the end of August 2007 and invests in Asia only. The intention over the coming months is to develop a broad-based portfolio, primarily in China, Japan, South Korea and Singapore.

SEB Asset Management has over EUR 111 bn in assets under management.