28 August 2012

SEB Asset Management expands its business in Asia

28 August 2012 - SEB Asset Management is acquiring partial ownership of 9,035 sqm of the mixed-use “Abeno Nini” commercial building in Osaka, Japan. The seller of the office, hotel and retail space is the property developer “Osaka Colors”. The total investment costs amount to JPY 7 billion (approximately EUR 72 million). This is SEB Asset Management’s seventh investment on the Japanese real estate market since it first entered it in 2007. The property will be added to the portfolio of the SEB Asia REI real estate special fund. SEB Asset Management’s eight-strong team in Singapore manages 14 properties in the Asia-Pacific region worth more than EUR 1.4 billion for the company’s various funds.

This equity interest gives us the opportunity to invest anticyclically on the Japanese real estate market,” said Siegfried Cofalka, the SEB Asset Management AG Managing Board member responsible for the institutional real estate business. “This newly constructed building is a compelling investment since it is fully let to creditworthy tenants for the long term, offers a good location near a major station and has an attractive initial return.”

The property, which was completed in February 2012, combines different types of use over 24 floors and two storeys below ground. It is fully let – the average remaining lease term is 12.8 years. A Japanese hotel operator and a bank are the main tenants of the space owned by SEB Asset Management. With 2.6 million inhabitants, Osaka is Japan’s third-largest city and the most important economic centre after Tokyo. The property is located in the up-and-coming district of Tennoji in the centre of Osaka, with the “Abeno CUES Town” retail location in the immediate vicinity. 

SEB Asia REI enables institutional investors to invest in the Asia-Pacific real estate markets via the familiar structure of a German special fund. This means that it is particularly suited to German institutional investors that are subject to the Versicherungsaufsichtsgesetz (VAG – German Insurance Supervision Act) and to foreign investors that are subject to similar regulations. SEB Asia REI pursues a core/core plus strategy with no restriction on duration. The average target return (BVI) is eight per cent per year, with the average target annual distribution being five per cent. The minimum investment is EUR 20 million. 

Source: SEB Asset Management