SEB Asset Management has closed the sale of a real estate portfolio in Germany to Dundee International REIT for €420 mln.
SEB Asset Management has closed the sale of a real estate portfolio in Germany to Dundee International REIT for €420 mln.
The transaction, involving 137,200 m2 of floor space, was originally announced last February. Four German financiers provided mortgage lending totalling 61% leverage.
The portfolio comprises 11 office properties built between 1992 and 2009 with an average economic occupancy rate of 94%. The purchase price of around €420 mln is slightly less than 5% below the most recently appraised market values.
Two of the 11 office buildings (in Cologne and Nuremberg) were part of the SEB ImmoPortfolio Target Return Fund, a semi-institutional real estate fund. The remaining nine properties belonged to the open-ended real estate fund SEB ImmoInvest and are located in Düsseldorf, Frankfurt, Freiburg, Hamburg, Mannheim, Munich and Stuttgart.
Dundee International REIT said the deal was partly funded by $243 mln raised in a recent share offering. Four German lenders - Aareal Bank, Bayern LB, DG Hyp and Münchener Hypothekenbank - provided €257 mln in mortgage financing. The loan was secured by tying each lender to a specific number of assets.
The loan has an average term to maturity of 6.8 years and an interest rate of 2.54%.
Dundee International REIT's advisers on the transaction were Olswang, Osler, Hoskin & Harcourt, NautaDutilh, PricewaterhouseCoopers, Valteq, Brookfield Financial and REAG.
Dundee International REIT's portfolio consists of 1.4 million m2 of gross leasable area of office, industrial and mixed-use properties across Germany.
