Cordea Savills acquires SEB Fund
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.