Cordea Sav­ills ac­quires SEB Fund

Financial Mirror (Cyprus) - - FRONT PAGE -

Sav­ills has ac­quired SEB As­set Man­age­ment from its Swedish par­ent SEB for 21.5 mln eu­ros, and will merge the com­pany with its in­vest­ment sub­sidiary Cordea Sav­ills.

The merger will cre­ate a real es­tate as­set manager with ap­prox­i­mately 17 bln eu­ros un­der man­age­ment.

Thomas Gü­tle, Man­ag­ing Direc­tor of Cordea Sav­ills, in­tends to fo­cus on and ex­pand the in­sti­tu­tional sec­tor in the wake of the ac­qui­si­tion, the Ger­man press re­ported.

The merged com­pany has ap­prox­i­mately 11 bln eu­ros un­der man­age­ment in this seg­ment, economies of scale be­ing one of the rea­sons he quoted for the takeover. In the con­text of the sec­tor’s on­go­ing con­sol­i­da­tion, he said that prop­erty ser­vice providers with­out a cer­tain size, re­gional reach and spe­cial­i­sa­tion are no longer even be­ing con­sid­ered by in­sti­tu­tional in­vestors.

Se­condly, Cordea Sav­ills wants to ex­pand its ex­per­tise in the of­fice sec­tor where SEB As­set Managa­ment in­vested about 80% of its fund vol­ume.

Thirdly, Cordea Sav­ills is in­ter­ested in the Asia plat­form of the SEB sub­sidiary “that nicely com­ple­ments our ac­qui­si­tion in Ja­pan last year.”

The su­per­vi­sory au­thor­i­ties have yet to ap­prove the takeover. Once the deal is ap­proved, Sav­ills in­tends to present its new man­age­ment team. The Ger­man mo­nop­o­lies and merg­ers com­mis­sion and the BaFin su­per­vi­sory author­ity for fi­nan­cial ser­vices are ex­pected to con­sent to the deal. The pri­vate in­vestor fund SEB Im­moIn­vest is be­ing wound up, and will have to have sell off its 112 build­ings by spring 2017.

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