SEB re-enters UK market with EUR 63m buy

SEB Asset Management has re-entered the UK real estate market after an absence of several years by purchasing a prime logistics property in West Moor Park in Doncaster for EUR 63mln.

The Frankfurt-based real estate arm of Northern European financial group SEB, said it is also sees 'good purchase opportunities in the London office market' in the short term. SEB acquired the assets from a group fo private investors to take advantage of the favourable market conditions in the UK following the steep price correction of recent months.

The logistics property is being contributed to SEB ImmoPortfolio Target Return Fund. The asset was built in 2003 and expanded two years later to offer a total of 70,000 m² of leaseable area. British clothing chain Next Group is leasing the space to 2023.

SEB sold off its UK portfolio twice in past years - most recently at the end of 2004. 'We systematically leveraged market developments to actively manage our portfolio,' said Choy-Soon Chua, managing director for real estate investments at SEB Asset Management. 'The current market situation in the United Kingdom is positive from a buyer’s perspective. We will continue to monitor the investment climate', adding that it sees good purchase opportunities in the London office market in the short term.

Separately, SEB said it has signed a preliminary contract to acquire the Arkonska Business Park in the Polish city of Gdansk for its SEB Global Property Fund and SEB ImmoPortfolio Target Return Fund open-ended real estate funds. The seller of the Class A office park is specialist real estate investment and development company Torus.

The complex consists of a total of five buildings and will be completed in two phases.