Investors decided together with the fund management about the future of SEB ImmoInvest. Many of the investors asked for a re-opening and continuation of the fund. The announced amendment of the fund rules in line with the German Investment Act as amended by the Act for the Improvement of Investors Protection and Market Functionality, which would have taken effect with the re-opening, was regarded as a sustainable development for open-ended real estate funds. Unfortunately, not all investors could be convinced to stay in the fund. As a result, all redemption requests collected until 7 May 2012 exceeded considerably the liquidity in the fund. In order to treat all investors equally, the fund management will not execute any redemption request and will, in consultation with the Federal Financial Supervisory Agency BaFin, dissolve the fund by 30 April 2017.
The result shows that, despite all efforts, the liquidity required could not be met without jeopardizing the quality and structure of the SEB ImmoInvest portfolio in case of a re-opening of the fund. A balance of interest between investors who wished to stay invested and those who asked to leave the fund could not be achieved.
SEB ImmoInvest with a fund volume of about 6 billion Euros was launched in May 1989 and is a classic among open-ended real estate funds. Currently, it is invested in 132 real estates in 18 countries and 64 cities. Since inception until today, the fund showed a performance of 219.7%, or above 5.2% p.a. on average (BVI-method).
