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SEB ImmoPortfolio Target Return FundAnnual Report as of 31 December 2005
SEB ImmoPortfolio Target Return Fund At a glance as of 31 December 2005
Fund assets EUR 205.6 million
Total property assets (market values) EUR 307.0 million
Total fund properties 12
Changes in the reporting periodAdditions 8Purchases 11
Letting rate (estimated gross rental) 1) 98.7%
Letting rate (estimated net rental) 98.5%
Net inflow of funds EUR 164.0 million
Distribution on 15 March 2006 EUR 9.072 million
Distribution per unit EUR 5.20Income tax-free share of private assets EUR 2.5290Share of private assets subject to income tax EUR 2.6710
Total property return 2) 8.8%
Liquidity return 3) 1.8%
Return on investment p. a. 4) 7.2%
Return on investment 4) since launch 45.9%
Unit value/redemption price 5) EUR 117.82
Issuing price EUR 121.35
Total expense ratio (TER) 6) 1.20%
1) Estimated gross rental corresponds to estimated net rental including ancillary costs.2) In relation to the average equity-financed directly and indirectly held property assets of the fund3) In relation to the average liquidity assets of the fund4) Calculated according to the BVI method5) If unit certificates are redeemed, a redemption fee of up to 3% of the unit value can be charged.6) Total expense ratio in relation to the average fund assets with a financial year in percent (further explanations on page 34 f.)
This annual report and the separately available sales brochure are to be delivered to investors in SEB ImmoPortfolio Target Return Fund units until the annual reportas at 31 December 2006 is published. The semi-annual report is to be appended in the event of a sale after its publication.
German Securities Code Number: 980 231 ISIN: DE0009802314 Launched as the special fund SEB ImmoSpezial I on 15 October 2001, converted to a mutual fundon 1 October 2004
Hamburg, “Halle E”, Strassenbahnring 6–18
Annual Report as of 31 December 2005 1
2 Editorial
3 Annual Report by the Management3 Concept and investment strategy
5 Opportunities and threats for open-ended real estate funds
7 A Survey of Real Estate Markets7 International real estate markets
7 Germany – Focus on international investors
7 France – Strong investment demand shows effect
7 Netherlands – Market with potential
8 Poland – Consolidation harbours opportunities
9 Norway and Finland – Markets are becoming international
9 USA – Niche products for diversification
9 Asia – Diverse opportunities
10 SEB ImmoPortfolio Target Return Fund in Detail10 Structure of fund assets
10 Distribution
11 Loans, currency hedging and risk provisioning
12 Return on investment
13 Earnings components
14 Portfolio structure
16 Rental
17 Change to portfolio
20 Purchase record for financial statement
21 Outlook
22 Overview: Returns, Valuation and Rental24 Development of Fund Assets26 Statement of Assets29 Holdings of Money Market Instruments, Securities and Hedge Transactions30 Property Record34 Statement of Income and Expenditure37 Auditor’s Certificate38 Tax Information for Investors44 Bodies
Annual Report as of 31 December 2005
Figures3 Real estate investment styles
14 Geographical distribution of properties
14 Economic age distribution of fund properties
15 Types of use of fund properties
15 Times to maturity of lease contracts
15 Size categories of fund properties
16 Sector structure of tenants
Dear investor,It is our pleasure to report to you on the successful per-
formance of the SEB ImmoPortfolio Target Return Fund
over the past twelve months. Since the repositioning of
the product as a mutual fund as of 1 October 2004, the
fund assets have been rigorously built up in line with the
stipulations of the defined risk/return profile.
A return on investment of 7.2% was generated in the past
financial year. A major factor in this return was our imple-
mentation of the “cash on demand only” principle, in
which the property return is only slightly diluted by a low
liquidity ratio. As a result of the return of the product as
well as the active and focused sales policy, high commit-
ments of funds are in place, which can be called on at any
time to purchase attractive properties.
At the same time, in terms of risk aspects, extensive liq-
uidity management is carried out. Whenever a property is
purchased, external financing, tax treatment as well as the
current and forecasted liquidity situation are optimised in
terms of the respective specific property strategy and in
the overall context of the fund. In the reporting period
from 1 January 2005 to 31 December 2005, net inflows of
funds of EUR 164 million were realised and EUR 232.2
million was invested in properties.
Overall, eleven contracts of sale were concluded for prop-
erties that correspond to the return requirements of the
fund in terms of the current cash flow and the future re-
turn.
An essential condition for the success of an open-ended
real estate fund is active fund management that continu-
ously monitors and optimises all components of the fund
whilst striking a balance between diversification of risk
and generation of return. Key factors here are committed
portfolio management for a broad diversification of fund
assets, active liquidity management as well as efficient
processes and strict risk management. Detailed informa-
tion on the opportunities and threats of open-ended real
estate funds is provided under a separate heading.
In the same way – particularly in the context of the cur-
rent debate on open-ended real estate funds – it is essen-
tial to provide targeted and detailed information in order
to justify the confidence placed in us. With this in mind,
we aim to give you an extensive account of the past finan-
cial year in this report.
2 SEB ImmoPortfolio Target Return Fund
Management: Barbara A. Knoflach, Axel Kraus andChoy-Soon Chua
Editorial
Concept and investment strategyThe SEB ImmoPortfolio Target Return Fund is a globally
oriented open-ended real estate fund with a core plus in-
vestment strategy. The fund is geared towards investors
who
intend to invest high volumes in an indirect real estate
investment in the medium to long term and fully utilise
the income potential of international real estate invest-
ments through professional and systematic manage-
ment, and/or
want to supplement the portfolio share of fixed-interest
capital investments with high-yield real estate invest-
ments in a similar risk category.
The portfolio of the fund is structured in line with this
product focus. The target return concept is intended to en-
able calculable results with appropriate diversification of
the portfolio. A portfolio balanced by region and type of
use is gradually being built up through purchases. Invest-
ments are focused on office and logistics properties in Eu-
rope. Retail properties and niche products such as student
housing in the USA or properties in Asia are intended to
supplement the portfolio.
Active portfolio management ensures the continuous opti-
misation of the portfolio. In established real estate mar-
kets, purchases and sales are combined with investments
in growth markets in a targeted manner in order to attain
a balanced mix of return potential and diversification of
risk. Also, the competitive strength of the portfolio prop-
erties is continuously being strengthened through target-
ed measures.
The target for the liquidity portion is between 5% and 10%
of fund assets. Dilution effects on the property return are
thus reduced. This requires active liquidity management
for synchronisation of inflows and outflows of funds and
real estate transactions.
Sales are therefore only carried out in accordance with the
“cash on demand only” principle. Real estate selection is
conducted in a combined top-down/bottom-up invest-
ment process. Commercial and location-specific opportu-
nities and threats of potential investment locations and
their market prospects are assessed in the context of a top-
down approach. For the specific investment decision, the
individual property is analysed with regard to its location,
immediate environment, building quality, tenants and
their credit rating (“bottom-up”).
Annual Report as of 31 December 2005 3
Annual Report by the Management
Investment style Profile Target returns/volatility
Opportunity
Core Plus
Core
High risk, high return. Investment focus on newlydeveloping markets, possibly distressed assets,and growth potential through developments. High leverage (> 50%).
Medium risk, medium return. Investments inestablished and up-and-coming markets. Assets,including with growth potential, possibly alsodevelopments. Leverage 50%.
Low risk, low return. Investments in establishedmarkets. Focus on stable cash flows. Low or no leverage.
> 9% / not limited
6–9% / single-digit targeted
5–6% / often less than 1%
Real estate investment styles
One decision-making criterion for selecting a property is
its ongoing, stable cash flow. In addition, properties
with appreciation potential are integrated into the port-
folio. Rental and property development risks are en-
tered into in a selective and targeted manner in order to
realise appreciation. In the same way, markets are select-
ed in which anti-cyclical investments can lead to posi-
tive developments of values.
An average property retention period of five to seven
years is targeted for the fund. Consequently, the assess-
ment of possible exit strategies for the individual property
is already a decision-making criterion in the purchase
process. For this reason, a provisions ratio for deferred
taxes of 100% is stipulated.
The strategic parameters of the fund concept include a
targeted total debt to equity ratio (leverage) of up to
50% at fund level. The hedging of foreign currency
items corresponds to the legal regulations and the risk
profile of the product.
4 SEB ImmoPortfolio Target Return Fund
Duisburg, Königsberger Allee 28
Annual Report as of 31 December 2005 5
Creation of provisions for capital gains tax in line with the
strategically defined retention periods of the properties
Real estate ownership forms the basis for stability of an
open-ended real estate fund. However, real estate income and
values can fluctuate depending on the economic situation.
The value and cash flow development of the properties
also follows the return of the fund. The fund return can
develop positively or negatively as a result of the market
development.
Furthermore, exogenous factors (such as closure of the
funds of other market players) can significantly impact on
the liquidity situation of the fund.
General opportunities and threats of real estate investmentsReal estate investments as a direct investment or equity
interests are subject to risks that can impact on the unit
value of the fund. The main risks here are the following:
Political, (tax) legislation-related and economic risks as
well as the transparency and development level of the
respective real estate market must be taken into account
when making investment decisions.
In the case of investments outside the euro zone, the
volatility of the national currency must be factored into
the investment decision. The exchange rate fluctuations
and the costs of currency hedging influence the property
return.
A change to the location quality can directly impact on
rentability and the current rental situation. If the attrac-
tiveness of the location increases, lease contracts can be
concluded at a higher rent level. However, if it falls, this
can lead to long-term vacancies in the worst case.
Building quality and condition also directly affect the in-
come potential of the property. The condition of the
building may necessitate maintenance expenditure in ex-
cess of the planned maintenance costs. Additional essen-
tial investment costs can have a short-term negative im-
pact on the return, but can also be necessary for a
positive development in the long term.
Opportunities and threats for open-ended real estate fundsAs with other capital investments, investments in open-
ended real estate funds involve both opportunities and
risks for the investor. Real estate investments are long-
term, income-oriented capital investments. The return on
investment is dependent on a variety of legal, economic,
tax-related, property-specific and product-specific fac-
tors. The main opportunities and threats are set out be-
low.
Specific opportunities and threats of an “open-ended real estate fund” investmentOpen-ended real estate funds invest readily available mon-
ey in medium to long-term real estate investments. Legisla-
tors have taken this problem of maturity transformation
into account with the following regulations:
Every open-ended real estate fund must always provide
a minimum liquidity of 5% of the fund assets in short-
term liquidity investments (e.g. bank deposits).
To stave off high outflows of funds, there is the possi-
bility of taking up loans in the amount of 10% of the
fund assets and also up to 50% of the market values of
the properties. If the costs of the external capital are
higher than the returns of the properties, this reduces
the fund return (negative leverage effect); if the external
capital costs are lower than the property return, the
fund return is increased (positive leverage effect).
Finally, unit certificate redemption can be suspended
for a period limited to two years.
In addition, the fund management has established prod-
uct-specific and target group-oriented approaches to risk
management of liquidity bottlenecks. The main ones are:
Target group-specific sales information
(Pro)active sales and investor management
Strategically aligned liquidity management in terms of
the liquidity ratio and the extent of external financing
options of the fund assets
Diversification of the real estate portfolio by criteria such
as size, age, type of use and location, in order to ensure
fungible properties in every market situation
Risks arising from natural hazards (such as earth-
quakes, tornados etc.) as well as fire and storm damage
are covered internationally by insurance, insofar as is
possible as well as commercially viable and objectively
justified.
Vacancies and lease contract expiries can be a risk as
well as potential income. For instance, properties with
vacancies can be purchased anti-cyclically in a target-
ed manner in order to realise subsequent value gains.
Crucial factors here are regular monitoring of the mar-
kets invested in and action based on this in order to
respond to market movements at an early stage. At the
6 SEB ImmoPortfolio Target Return Fund
same time, vacancies lead to loss of revenue as well as
higher costs, in order to make the property a more at-
tractive leasing proposition.
The credit rating of the tenants is also a major risk
component. A low credit rating can lead to high levels
of outstanding debt, and insolvencies can lead to total
loss of income. The aim is to reduce the dependency on
individual tenants or sectors in the context of portfolio
management.
The above risks are just a selection. A detailed risk descrip-
tion can be found in the current sales brochure.
Hamburg, “Halle E”, Strassenbahnring 6–18
Annual Report as of 31 December 2005 7
International real estate marketsThe global economy is set to maintain its stable growth
trend in 2006. Although the momentum has slowed
worldwide, the positive prospects for Europe are more
stable, as positive indicators are also becoming more in-
fluential in Germany and France. Asia and the USA are
also engines of growth this year.
The real estate markets are benefiting from this develop-
ment worldwide. The consolidation of the office markets
in Europe is gaining momentum. The rental index of Jones
Lang LaSalle rose by 3.4% last year. No further rent falls
were observed in any of the analysed markets in the last
quarter of 2005. Rental revenues rose to their highest lev-
els since 2000. In contrast, vacancy figures fell only mar-
ginally at European level, as many of the letting transac-
tions involved area consolidation.
A further fall in initial returns in the real estate investment
markets was observed as the dominant global trend in
2005, particularly in Europe, although the interest level
was less of a supporting factor. This development is set to
continue in 2006.
Germany – Focus on international investorsGermany remained way behind the European average in
terms of macroeconomic development in 2005. The posi-
tive trend is expected to strengthen in 2006 with a recov-
ery of domestic demand.
The office market in Hamburg showed a clear upward
trend last year. This is set to continue in 2006. Although
the other office markets experienced a significant in-
crease in office take-up, the development of the vacancy
and rental level was still not highly positive.
The recovery of domestic demand and the positive
macroeconomic development in Europe are also
strengthening the markets for retail and logistics prop-
erties.
The position in the real estate cycle and the fundamental
data of the German real estate market at international lev-
el is leading to constant rise in demand from international
investors for commercial and residential properties. This
was apparent in 2005 in the volume and quantity of cross-
border transactions.
France – Strong investment demand showseffectThe office space markets in France continued to recover
in 2005, revenues increased, vacancy rates fell slightly
and the rent level developed positively in Paris and in the
regional centres. The recovery of the markets is set to
continue in 2006.
The continuing high level of investment demand intensi-
fied significantly beyond Paris in 2005. Last year, a fall in
initial returns by up to 1% was observed in some of the
regional centres. Initial returns of around 5% were accept-
ed in Paris in transactions of top properties.
The logistics and retail markets are also becoming increas-
ingly attractive as the overall economy France recovers.
Netherlands – Market with potentialThe office markets in the Netherlands have experienced a
sharp downturn in demand and rent level and a rise in
vacancy rates in recent years. However, there were signs
last year that the negative trend is coming to an end, with
an increase in user and investor demand. The recovery of
the market provides attractive investment options in a
professional and transparent market.
The logistics market in the Netherlands is of sustained
significance by virtue of its central location and the inter-
national traffic flows headed for places such as Rotterdam
harbour. The market provides attractive investment op-
tions.
A Survey of Real Estate Markets
Poland – Consolidation harbours opportunitiesA very positive development of rental revenues was ob-
served in Warsaw in 2005. At the end of the year, there
was a stabilisation of top rents and the incentives granted
to new tenants. The consolidation phase of the market is
coming to an end.
A further rise in office space demand can be expected
for 2006, with no increase in the rent level. The develop-
ment of speculative office properties in non-central loca-
tions is continuing to curb the rent development.
The high level of investment demand has led to a further
fall in the purchase yield and therefore positive returns for
portfolio properties.
8 SEB ImmoPortfolio Target Return Fund
Warsaw, University Business Center I, Szturmowa 2 a
Norway and Finland – Markets are becominginternationalThe Nordic countries have positive growth prospects and
a high level of prosperity. Finland and Sweden in particu-
lar are continuing to extend their comparative advantages
as international corporate locations. Norway is benefiting
considerably from the high oil price level.
Norway’s commercial real estate markets were charac-
terised last year by increasing internationalisation with a
positive development of user markets. Growth prospects
for the next few years remain positive. Demand for mod-
ern logistics properties in good locations is continuing to
grow as a result of the great importance of foreign trade.
The Helsinki area is one of the strongest growth regions
in the euro zone with growth rates well above the Euro-
pean average. In the Jones Lang LaSalle city rankings,
Helsinki was again well up among the leaders in 2005,
placed 4th out of around 80 European cities assessed.
Finland is benefiting from its proximity to the growth
regions in the Baltics and Russia. In addition, there is
still pent-up demand for modern, efficient office space.
This is a good framework for successful commercial real
estate investments.
USA – Niche products for diversificationEconomic development in the United States has stabilised.
We continue to expect a positive development of the econ-
omy and employment growth. The office markets are con-
tinuing to recover with regional variations in momentum.
Retail revenues are still supporting investments in this
segment, although no major rent increases are expected.
Logistics properties are particularly benefiting from the
dynamic development of foreign trade relations.
The USA offers a wide variety of investment options. As
a result of continuing high investment demand and posi-
tive leverage potential despite rising interest rates, initial
returns remain at a low level. This particularly applies to
office properties with strong occupancy levels in major
cities. In contrast, there are still investment opportuni-
ties, including in regional locations, in properties with
development potential, and in niche segments such as
student housing or medical offices, which are becoming
increasingly established among institutional investors in
the USA.
Asia – Diverse opportunitiesAs an engine of growth in the current upturn of the
global economy, the Asian markets are increasingly ben-
efiting from intra-Asian economic relations. In 2006, the
growth prospects are only slightly weaker than in the
previous year, with the economic recovery in South Ko-
rea and Japan set to gain further momentum.
The diversity of the real estate markets offers huge poten-
tial for professional investors with different investment
profiles. In addition, internationalisation and profession-
alism are generating increasing market transparency, thus
reducing the risks of cross-border investments.
Annual Report as of 31 December 2005 9
10 SEB ImmoPortfolio Target Return Fund
SEB ImmoPortfolio Target Return Fund in Detail
Fund developmentAs at As at As at
30.09.2004 1) 31.12.2004 2) 31.12.2005TEUR TEUR TEUR
Properties 18,870 74,800 271,755
Equity interests in real estate companies 0 0 11,012
Liquidity portfolio 3,073 3,941 12,448
Other assets 75 94 6,315
. / . Liabilities and provisions – 5,703 – 41,924 – 95,959
Fund assets 16,315 36,911 205,571
Outstanding units (number) 145,795 323,497 1,744,703
Unit value (EUR) 111.90 114.09 117.82
Interim distribution per unit (EUR) – – 4.24 3)
Date of interim distribution – – 17.05.2005 4)
Distribution per unit (EUR) 7,56 – 5.20
Date of distribution 30.09.2004 – 15.03.2006
1) As at the financial year-end of the SEB ImmoSpezial I special fund2) Short financial year from 1 October 2004 to 31 December 20043) Refers to the outstanding units on 30 April 20054) Interim distribution of the profit for the period from 1 January 2005 to 30 April 2005 and the profit retained as at 31 December 2004
Structure of fund assetsAs of 31 December 2005, fund assets totalled EUR 205.6
million. A volume increase of EUR 168.7 million was
therefore generated since 1 January 2005. The number of
units outstanding rose from 323,497 as at 1 January 2005
to 1,744,703 as at 31 December 2005. The net inflow of
funds amounted to EUR 164.0 million. The property as-
sets of directly and indirectly held properties (basis:
market values) increased from EUR 74.8 million to EUR
307.0 million as a result of eight additions.
Gross liquidity amounted to 6.06% as of the reporting
date and was fully maintained as bank deposits avail-
able on demand as of the end of the reporting period.
One security that was included in the liquidity portfolio
for part of the year was sold in the reporting period gen-
erated gains of TEUR 65. On average, the liquidity ratio
in the last few months was 10.89% of fund assets. The
liquidity ratio was higher than in previous year on aver-
age, primarily because of the essential early drawdown
of funds for purchase price payments at international
level.
DistributionA total of EUR 9.1 million is to be distributed for the 2005
financial year. The distribution therefore amounts to EUR
5.20 per unit. 48.6% or EUR 2.5290 of this is income tax-
free for private investors. Investors will be paid automati-
cally on 15 March 2006 by the custodian bank.
Further details on the distribution and the taxable in-
come in the operating assets can be found on pages 34
and 38 of this report.
Annual Report as of 31 December 2005 11
Loans, currency hedging and risk provisioningLoans were mainly used for tax optimisation and curren-
cy hedging. At the same time, external financing must be
carefully coordinated with the respective cash flow of the
property and the financial structure of the fund in order to
realise positive leverage effects in the long term. The fixed
interest rate period and duration of the loans are coordi-
nated with the income structure and planned retention
period of the properties, the expected interest rate trend
and the fund performance.
The currency risk with real estate investments in foreign
currencies is reduced by taking out foreign currency loans
and by means of forward exchange transactions. Accord-
ing to the legal regulations, no more than 30% of the fund
assets may be subject to currency risks. Investments out-
side the euro zone have been made in Poland and the USA
to date. For both properties in Warsaw, the currency risk is
minimised by the lease contracts and contracts of sale in
euros. Consequently, there is no further currency hedging
beyond this. As at the reporting date, liabilities in PLN
exceeded assets in PLN. Active currency hedging is carried
out for the American property. As of 31 December 2005,
the hedging amounted to 100.16% of the fund assets held
in US dollars. This over-hedging results from the partial
hedging of future cash flows. The fund company uses de-
rivative financial instruments to hedge currency risks. The
average time to maturity of the forward exchange transac-
tions is 0.84 years.
If properties are sold abroad, capital gains tax can be
payable. On the basis of the pursued investment strategy,
a seven to ten-year retention period of the properties in
the portfolio is planned. We there believe that a provisions
ratio of 100% for deferred taxes is appropriate. Further in-
formation can be found in the notes on the financial state-
ment, starting on page 26.
Currency Total lendings in % of Duration Total lendings in % of Duration Total lendings in % of(direct) fund (equity interests) fund (total) fundin EUR volume in EUR volume in EUR volume
EUR loans (Germany) 24,560,000 12.0 2.5 years 24,560,000 12.0
EUR loans (abroad) 57,717,075 28.1 1.8 years 57,717,075 28.1
USD loans 24,740,751 12.0 7.9 years 24,740,751 12.0
Total 82,277,075 40.1 24,740,751 12.0 107,017,826 52.1
Overview of loans as of 31 December 2005
Fixed interest rate period Total lendings in % ofin EUR fund volume
Less than 1 year EUR loans 23,977,075 11.7
1–2 years EUR loans 38,400,000 18.7
2–5 years EUR loans 19,900,000 9.7
5–10 years USD loans 24,740,751 12.0
Total 107,017,826 52.1
Breakdown of lending volume by fixed interest rate period as of 31 December 2005
Overview of currency risks as of 31 December 2005Currency Open currency positions in % of fund in % of fund
as of the reporting date volume (incl. loans) volume perper currency area currency area
USD (USA) USD – 22,957.15 (EUR – 19,418.02) – 0.2 – 0.2
PLN (Poland) PLN – 1,037,507.03 (EUR – 268,707.99) – 0.4 – 0.8
12 SEB ImmoPortfolio Target Return Fund
Return on investmentThe return on investment of the fund consists of the in-
come development and return of the properties as well as
the fund liquidity. The effects of the individual compo-
nents on the total return are set out in detail on page 13 of
this report.
The fund again achieved an outstanding position among
its peer group in the reporting period. A return of 7.2% or
EUR 7.97 per unit was realised in the reporting period
from 1 January 2005 to 31 December 2005. The fund has
achieved a cumulative return of 45.9% since it was
launched.
Return Return in % in % p. a.
1 year 7.2
2 years 15.0 7.2
3 years 34.1 10.3
Since launch 45.9 9.3
Calculated according to the BVI method (excluding issuing premium, distribu-tion reinvested immediately). Past performance data are not an indication of fu-ture performance. The fund changed its investment policy on 1 October 2004.
Unit value on 31 December 2005 EUR 117.82
Plus distribution on 17 May 2005 EUR 4.24
Less unit value on 1 January 2005 EUR – 114.09
Return on investment EUR 7.97
Development of returns
Hamburg, “Halle E”, Strassenbahnring 6–18
Earnings componentsThe fund earnings consist of the return of the properties
and the liquidity portfolio. In the reporting period, the
properties of the portfolio generated a gross return of
8.0% in relation to the average property assets in the re-
porting period.
After deducting the operating costs of – 0.7%, a net yield
of 7.3% is produced. Overall, a positive change in value of
0.4% was realised on the average property assets in the
portfolio. The “Changes in value” item consists of adviso-
ry and other changes in value. The “Other changes in val-
ue” item takes into account changes in the book value of
the properties arising from provisions for planned conver-
sion and modernisation costs, for example. The positive
changes in value result from other changes in value. These
mainly involve cost reductions that were realised in the
context of transaction processing.
Foreign income taxes impaired the fund return by – 0.4%
in the reporting period. This primarily involves taxes for
the properties in Poland. Provisions for deferred taxes
were set up for the investments in France, and had a
– 0.1% impact on fund earnings. In the Netherlands and
Poland, potential capital gains are offset by potential dis-
posal costs, with the result that there is no need to set up
provisions for capital gains tax here. In the same way,
there was no need to set up provisions for capital gains
tax in the USA because of the current equity interest value.
Through the targeted use of external capital and a strate-
gically oriented financing ratio, positive leverage effects
were attained that caused the EBIT ratio after loan expen-
diture to rise to 9.2%. The external financing ratios ranged
from 12% to around 70% at country level depending on
the income and corporate structure of the real estate in-
vestment.
Negative exchange rate effects mainly resulted from loss-
es from forward exchange transactions in the reporting
period.
These forward exchange transactions were concluded to
hedge a VAT claim in relation to the Polish tax authorities
and to hedge the equity interest value of the US invest-
ment.
Annual Report as of 31 December 2005 13
Earnings components of the fund return from 1 January 2005 to 31 December 2005Germany Total abroad Total
in % in % in %
I. PropertiesGross income 1) 7.7 8.3 8.0Operating expenditure 1) – 0.7 – 0.8 – 0.7Net income 1) 7.0 7.5 7.3Changes in value 1) 0.1 1.0 0.4Foreign income taxes 1) 0.0 – 1.0 – 0.4Foreign deferred taxes 1) 0.0 – 0.2 – 0.1Income before loan expenditure 1) 7.1 7.3 7.2Income after loan expenditure 2) 7.7 13.3 9.2Currency translation 2) 3) 0.0 – 1.6 – 0.4
Total income in fund currency 2) 4) 7.7 11.7 8.8
II. Liquidity 5) 6) 1.8
III. Total fund income before fund costs 7) 8.0
Total fund income after fund costs (BVI method) 7.2
1) In relation to the average property assets of the fund in the reporting period 2) In relation to the average equity-financed property assets of the fund in the reporting period3) The exchange rate changes and the costs of hedging for the reporting period are shown under “Currency translation”.4) Total income in foreign currency were generated with an equity-financed real estate portion of 89.11% on average during the period.5) In relation to the average liquidity assets of the fund in the reporting period6) The liquidity portion invested on average during the period was 10.89% of fund assets7) In relation to the average fund assets in the reporting period
Overall, a strong earnings figure was again generated
with a total property return of 8.8%.
On average, a return of 1.8% was attained from the liquid-
ity portfolio in the reporting period. Due to the low liquid-
ity portion in the fund assets, the total return was mainly
carried by the properties and earnings before fund costs of
8% were attained.
Portfolio structureThe property assets of the SEB ImmoPortfolio Target Re-
turn Fund are rigorously geared towards its positioning as
a core plus product. In each purchase, the focus is on the
contribution of the property to the risk/return profile.
As of the reporting date, the portfolio comprised one eq-
uity interest and eleven directly held properties. The port-
folio is divided between five countries. As a result of the
eight new additions, the property assets (directly and in-
directly held properties) increased from EUR 74.8 million
to EUR 307.0 million.
As of the reporting date, the property assets of the fund
were almost equally divided between Germany (52.1%)
and abroad (47.9%). The regional focal point of the port-
folio is currently Hamburg with 30.2% of property assets
on the basis of market values. This German submarket
showed a significant upward trend last year with the op-
portunity to participate in the rising rent level. Also, three
new markets were tapped into for portfolio diversifica-
tion, with investments in Poland, the USA and the Nether-
lands.
The property sizes of the portfolio currently come into
two categories. 71.3% of the real estate or six properties
have a market value between EUR 25 million and EUR 50
million, and 28.7% or six properties have a market value
of less than EUR 25 million.
The two Warsaw properties UBC I and UBC II, whose ten-
ants include famous names such as the Polish subsidiaries
of Hewlett-Packard, Nestlé and Fiat, make up the largest
share of the total assets.
The new addition in Hamburg, Lübecker Strasse 128/
Landwehr 2, accounts for the second-largest share of the
portfolio, followed by the property in Ottobrunn, Robert-
Koch-Strasse 100.
14 SEB ImmoPortfolio Target Return Fund
7 properties / 51.6%Up to 5 years
5 properties / 48.4%5 to 15 years
Economic age distribution of fund properties
3 properties / 30.2%Hamburg
2 properties / 6.8%France
Geographical distribution of properties
2 properties / 25.1%Poland
2 properties / 16.0%Other abroad (NL, USA)
3 properties / 21.9%Others Germany
Basis: market values (including properties held via equity interests) Basis: market values (including properties held via equity interests)
With regard to the age distribution, 51.6% of the property
assets are invested in properties with an economic age of
no more than five years.
The type of use of the fund properties is mainly focused
on offices (61.3%) and industry (18.1%). For structural di-
versification, a student residence complex was purchased
in the state of Florida in the reporting period. In addition
to the continuous cash flow returns, it is primarily the di-
versification effects that make a structurally extended in-
vestment horizon attractive in niche market segments.
The addition of expanding market sectors such as student
housing in a stable environment constitutes an attractive
portfolio complement to conventional commercial proper-
ties such as offices, retail and logistics. This new type of
use, which is subsumed under the residential segment,
generates 14.8% of rental income.
The tenant distribution has a wide sector spread: tenants
from the consumer goods industry and retail account for
27.2% of the estimated total rental, other sectors (predomi-
nantly student housing) 17.4% and the technology and
software sector 14.3%.
The broad diversification of risk is also reflected by an
analysis of the three largest tenants. Together, these ten-
ants make up 28.3% of the estimated total rental. The
largest tenant is Bosch Sicherheitssysteme GmbH, based
in Robert-Koch-Strasse 100, Ottobrunn, Munich, followed
by Hewlett-Packard Polska in the two Warsaw properties
and the occupational accident insurance provider Verwal-
tungs-Berufsgenossenschaft at Friesenstrasse 22/Grüner
Deich 21, Hamburg. The lease contract with this tenant,
which has an excellent credit standing, runs until 2015.
Annual Report as of 31 December 2005 15
42.8%61.3%
35.2%
18.1%
19.7%14.8%
0.8%1.2%
0.0%
3.6%
1.5%1.0%
Types of use of fund properties
By rental areaBy estimated annual net rental(including properties held via equity interests)
6 properties / 28.7%EUR 0 to 25 million
6 properties / 71.3%EUR 25 million to EUR 50 million
Size categories of fund properties
2.2% (7)
0.6% (2)
0.0%
12.2% (9)
28.5% (12)
13.4% (2)
1.0% (2)
3.2% (1)
5.1% (2)
10.0% (3)
9.1% (5)
14.7% (521)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
From 2016
Indefinite
Times to maturity of lease contracts
Number of tenants in bracketsBasis: estimated annual net rental
(including properties heldvia equity interests)
Basis: market values (including properties held via equity interests)
Offices
Industry(Warehousing, halls)
Residential
Retail /catering
Car park
Other
RentalThe letting rate of the SEB ImmoPortfolio Target Return
Fund amounted to 98.5% of the estimated net rental as of
the reporting date. On average during the year, the letting
rate was 99.7% in relation to the net estimate and 99.8% in
relation to the gross estimate. The vacancies result from
the newly purchased property in Gainesville, USA. As a
result of the positive development of demand for student
apartments in this location, there is potential for a further
increase in rental income from this property.
The stability of the real estate values and the cash flow
depends on the lease contract structure. At present, 56.5%
of lease contracts have a duration of more than five years.
A diversified structure of lease durations is therefore a
significant component of risk management at portfolio
level. In the event of new investments, the respective
property contribution to the lease contract structure is
explicitly factored into the purchase decision. At the same
time, lease expiries also provide the opportunity to partic-
ipate in positive market developments and associated in-
creases in the rent level.
Further information on the portfolio structure can also be
found in the overview: returns, valuation and rental on
pages 22 and 23 of this report.
16 SEB ImmoPortfolio Target Return Fund
Sector structure of tenants
27.3% (7)16.0% (6)
11.4% (3)7.5% (5)
4.8% (1)2.7% (6)
1.8% (5)0.5% (4)0.3% (2)0.2% (2)
27.5% (516)
27.2% (7)
14.3% (3)12.9% (6)
12.2% (5)6.6% (1)
4.4% (6)3.3% (5)
1.0% (4)0.4% (2)
0.3% (2)17.4% (516)
By rental area * Consumer goods industry and retail
Automotive and transportationTechnology and softwareConstruction companies
Authorities, associations and educational establishmentsMedia and entertainment
Banking and financial servicesProviders and telecommunications
Management, legal and tax consultancyHotel and catering
Other sectors
By estimated annual net rental *Consumer goods industry and retail
Technology and softwareAutomotive and transportation
Construction companies Authorities, associations and educational establishments
Media and entertainmentBanking and financial services
Providers and telecommunicationsManagement, legal and tax consultancy
Hotel and cateringOther sectors
* Including properties held via equity interests
Number of tenants in brackets
Change to portfolioIn total, eleven properties were purchased for the fund in
the past twelve months. Eight of these have already been
added. We provided detailed information on the three
investments made in the first half of the financial year at
Friesenstrasse 22/Grüner Deich 21 in Hamburg and Sztur-
mowa 2 and Szturmowa 2 a in Warsaw in the semi-annual
report as of 30 June 2005. Eight investments were made in
the second half of the financial year, five of which have
already been added. Three investments will be transferred
to the fund after completion.
Additions and purchases – GermanyHamburg, Strassenbahnring 6–18
The office building “Halle E” in the Hamburg district of
Eppendorf was purchased in October 2005.
The Eppendorf district has an excellent transport infra-
structure. Centrally situated near an underground station
and several bus routes, it is only a few minutes’ drive
from the airport and the motorway junctions in the north-
west of the city. Eppendorf boasts high-quality commer-
cial locations and residential areas. In the past, office
properties tended to be solitary properties with freelance
users. The change of use of the former Falkenried garages
has resulted in a unique office location combined with res-
idential use. With total floor space of around 60,000 m2, it
has sufficient “critical mass” to be placed on the market in
the long term.
The building is a former production shop that has been
developed into a modern, six-module office building in
line with listed building regulations. Only the listed brick-
lined façade was retained in this reorganisation project,
which was completed in 2004. Overall, the property has a
rental area of around 8,487 m2 and 176 parking spaces.
The building is fully let with users RTL Television, the
Grey advertising agency, Cucinaria Kitchen Equipment
GmbH and Closed GmbH. The total investment volume
for the property was around EUR 26.6 million. It was
sold by a property management company belonging to
the Hamburg Team Gesellschaft für Projektentwicklung
group, which is responsible for the overall development
of the Falkenried location.
Hamburg, Lübecker Strasse 128 / Landwehr 2
The “Hamburger Welle” office property was purchased
from the real estate company Kampnagel in December
2005. The building, completed in 2004, is situated in a
high-profile central location in Hamburg. The total floor
space of the six-storey building is around 16,400 m2. In ad-
dition, the property has 122 parking spaces. Züblin AG
and Colgate-Palmolive GmbH are the main tenants of the
property, which currently has ten users with long-term
leases. There is a five-year rent guarantee from the seller
for the area that is currently still vacant (approximately
19% of the total area). The total investment volume for the
property was around EUR 43.7 million.
Annual Report as of 31 December 2005 17
Hamburg, “Halle E”, Strassenbahnring 6–18
Additions and purchases – abroadFrance,
Paris / Herblay-Cergy-Pontoise, 41 Avenue de Gros Chêne
In July 2005, the contract of sale for the “Le Bellevue”
property in Herblay-Cergy-Pontoise was concluded. The
area of Cergy-Pontoise, north of Paris, is one of the most
significant logistics locations in the Paris region. The sell-
er was Pitch Promotion S.A., one of the leading French
developers of logistics properties. Completed in Decem-
ber 2005, the property comprises around 16,374 m2 of
storage space and 1,125 m2 of office space as well as 163
parking spaces. “Le Bellevue” occupies the last vacant
spot in a logistics area covering around one million
square metres.
Around two-thirds of the property is leased to KAYABA
Europe GmbH, a German subsidiary of Japan’s largest
manufacturer of shock absorbers and hydraulic compo-
nents. As is customary in France, the lease contract has a
duration of nine years with an initial termination option
after the first six years. Talks are being held with several
interested parties on renting the remaining area. The
total investment costs for the purchased property came
to around EUR 13.2 million.
Netherlands,
Venlo, Celsiusweg 66
With the purchase in July 2005 of a logistics building in
Venlo, a town near the German border, the diversification
of the fund portfolio has been extended to the Netherlands.
Venlo, the country’s second-largest logistics centre after
Rotterdam harbour, is a high-quality location with excel-
lent transport connections. The seller was ASV Vastgoed
BV, a Dutch subsidiary of the international logistics com-
pany Seacon Logistics.
The building consists of three connected halls with a total
rental area of 20,716 m2 as well as an office section with a
rental area of around 1,444 m2. The three halls are leased
to Lutèce BV until the end of 2009. Lutèce is the Dutch lo-
gistics company of the Mushroom Growers’ Association
and packages all kinds of canned mushroom products for
global export. The office space is leased to Seacon Logis-
tics until the end of 2010 as part of a sale and leaseback
contract. Both lease contracts are annually indexed and
provide a constant cash flow for the fund. The total in-
vestment volume for the property came to around EUR
13.7 million.
18 SEB ImmoPortfolio Target Return Fund
Ottobrunn, Robert-Koch-Strasse 100
USA,
Gainesville, 2330 SW Williston Road
November 2005 saw investment in a new market segment
for open-ended real estate funds with the purchase of a
student residence complex in northern Florida. In a joint
venture with partner Paradigm, which has been active in
the student housing sector for over 20 years as an owner,
developer and manager, a 90% equity interest in the com-
pany Kings Gainesville Apartments, LLC, was purchased
for the equivalent of around EUR 35.3 million. This pur-
chase was also the first investment for the fund in North
America.
The complex, consisting of 28 buildings, is situated near
the University of Florida in Gainesville and comprises
560 apartments for around 1,100 students. In addition to
a wide variety of sports and leisure facilities, the complex
is close to public transport connections, an important
consideration for the user group. With approximately
48,000 students, the University of Florida is the fifth-
largest American university, and one of the 75 most com-
petitive out of a total of 1,650 universities in the USA,
with rising student numbers for several years. Over
40,000 of these students live in apartments outside the
university campus.
At the time of purchase, the complex was 93% leased. As
is common with student apartments in the USA, the dura-
tion of the lease contracts concluded and guaranteed by
the parents of the students is twelve months. The practi-
cally permanent “user replacement” combined with limit-
ed accommodation options means that stable regular
rental income is expected for the fund.
Purchases abroad that are not yet included inthe portfolioFinland,
Helsinki, 01510 Vantaa, Äyritie 8b
In December 2005, a contract of sale was signed for the
“Plaza Allegro” office building in Helsinki, which is still
under construction. This purchase is the first by the fund
company in Finland. The acquisition of the building,
which cost around EUR 15 million, is tied in with a mini-
mum letting rate of 80%. At present, the project is 18%
leased. Negotiations with other potential tenants are in
progress. An additional rent guarantee of three years from
the seller NCC for the unleased portion gives the fund the
best possible security for the leasing risk. The building is
part of the new Airport Plaza Business Park in the Airport
City Aviapolis submarket, situated to the north of Helsinki.
Four buildings are already complete. By the end of 2006,
“Plaza Allegro” will become the fifth of a total of eight of-
fice buildings. The property covers a rental area of around
4,600 m2 and has 114 car parking spaces.
The development of the business park is to be completed
in 2009 by NCC Property Development, one of the leading
property developers in Northern Europe.
France,
Aix-en-Provence, Parc de la Duranne,
320 Avenue Archimède
The contract of sale for the “Les Pleiades III” office com-
plex, comprising around 5,640 m2 and 299 parking spaces
and situated in the “Parc de la Duranne” location between
Aix-en-Provence and Marseille, was signed at the begin-
ning of November 2005. The entire project, amounting to
approximately EUR 10 million, will be transferred to the
fund when it is completed in April 2006.
Annual Report as of 31 December 2005 19
Helsinki, 01510 Vantaa, Äyritie 8 b
The purchase was made from the Strasbourg-based
Lazard Group. The seller specialises in office develop-
ments in French regional markets that tie in with the
income-oriented investment strategy of the SEB Immo-
Portfolio Target Return Fund by virtue of their market
size and their purchase yields, which are around 150 to
200 basis points above the return level of major European
cities. The letting level of the project is currently approxi-
mately 53%. The seller grants a two-year rent guarantee
from transfer of the project into the fund. However, as a
result of strong tenant demand, full leasing is expected to
be attained within the next few months.
France,
Toulouse-Labège, Regent Park, Voie l’Occitane
At the same time as the purchase of the “Les Pleiades III”
project, the first construction phase of the “Regent Park”
office complex in the Labège-Innopole industrial park to
the south-east of Toulouse was purchased from the Lazard
Group.
The first construction phase involves two buildings with
around 6,130 m2 office space and 260 parking spaces.
Completion and transfer of the project into the fund are
planned for April 2006. The total investment volume is
around EUR 10.3 million. Active letting of Regent Park
first started at the beginning of 2006. A two-year rent
guarantee was also agreed with the seller for this project.
An option on two other construction phases was agreed
with the seller. This covers office space of around
10,800 m2 and is set to be completed by mid-2009 with
positive tenant demand.
20 SEB ImmoPortfolio Target Return Fund
Germany Transfer of risks and rewards on Total investment costs in EUR million 1)
20097 Hamburg Friesenstr. 22 / Grüner Deich 21 05/2005 22.4
20251 Hamburg Strassenbahnring 6–18 10/2005 26.6
22087 Hamburg Lübecker Str. 128 / Landwehr 2 12/2005 43.7
France
95220 Herblay 41 Avenue de Gros Chêne 12/2005 13.2
Netherlands
5928PR Venlo Celsiusweg 66 07/2005 13.7
II. Directly held properties in countries with a different currency
Poland
2678 Warsaw Szturmowa 2 06/2005 28.4
2678 Warsaw Szturmowa 2 a 06/2005 48.5
III. Directly held properties in countries with a different currency
USA
32608 Gainesville 2330 SW Williston Road 11/2005 35.3 2)
1) Total investment volume at the time of purchase2) Including loans taken on as part of the equity interest purchase
Purchase record for financial statement as of 31 December 2005
Purchases
I. Directly held properties in countries in the euro zone
OutlookThe open-ended real estate fund SEB ImmoPortfolio Tar-
get Return Fund continued its successful trend in the past
financial year. This annual report documents this develop-
ment.
Irrespective of the current debate regarding German
open-ended real estate funds, we firmly believe that at-
tractive returns can continue to be achieved with an ap-
propriate level of risk with this type of investment. Invest-
ing in real estate involves long-term, stable investments as
far as open-ended fund asset investments are concerned.
For instance, in France, alongside the established REITs,
open-ended real estate funds have already been intro-
duced as another stable form of investment with a com-
paratively low level of volatility. At the same time, real es-
tate is continuously gaining in attractiveness as an asset
category by virtue of the rising demand from internation-
al financial investors on the European and, in particular,
German real estate markets.
The following aspects in particular are essential condi-
tions for continuing the positive development of open-
ended real estate funds:
Continuous portfolio management, starting with the
purchase of the property, through stock management to
the sale or repositioning of the property in the context
of the overall portfolio
Holistic optimisation and active risk management at all
levels of the fund
Stringent product positioning by the investor
We have put these conditions in place through our clear-
ly defined product structure and our many years of
expertise. In the new financial year too, we will make
every effort to continue the success of this product.
Thank you for your confidence.
SEB Immobilien-Investment GmbH
Management
Knoflach Kraus Chua
Frankfurt am Main, March 2006
Annual Report as of 31 December 2005 21
22 SEB ImmoPortfolio Target Return Fund
Overview: Returns, Valuation and Rental
Key return ratios (in % of the average fund asset components)
Germany Abroad (F, PL, NL, USA) Total
I. Properties
Gross income 1) 7.7 8.3 8.0
Operating expenditure 1) – 0.7 – 0.8 – 0.7
Net income 1) 7.0 7.5 7.3
Changes in value 1) 0.1 1.0 0.4
Foreign income taxes 1) 0.0 – 1.0 – 0.4
Foreign deferred taxes 1) 0.0 – 0.2 – 0.1
Income before loan expenditure 1) 7.1 7.3 7.2
Income after loan expenditure 2) 7.7 13.3 9.2
Currency translation 2) 3) 0.0 – 1.6 – 0.4
Total income in fund currency 2) 4) 7.7 11.7 8.8
II. Liquidity 5) 6) 1.8
III. Total fund income before fund costs 7) 8.0
Total fund income after fund costs (BVI method) 7.2
1) In relation to the average property assets of the fund in the reporting period2) In relation to the average equity-financed property assets of the fund in the reporting period3) The exchange rate changes and the costs of hedging for the reporting period are shown under “Currency translation”.4) Total income in foreign currency were generated with an equity-financed real estate portion of 89.11% on average during the period.5) In relation to the average liquidity assets of the fund in the reporting period6) The liquidity portion invested on average during the period was 10.89% of fund assets.7) In relation to the average fund assets in the reporting period
Capital information (weighted average figures in EUR)
The average figures for the financial year are calculated on the basis of 13 month-end figures (31 December 2004 to 31 December 2005).
Germany Abroad (F, PL, NL, USA) Total
Directly held properties 83,705,426 59,299,196 143,004,622
Properties held via equity interests – 5,771,178 5,771,178
Total properties 83,705,426 65,070,374 148,775,800
Of which equity-financed real estate assets 73,441,461 26,377,102 99,818,563
Liquidity 12,197,755
Total lendings –48,957,237
Fund volume 112,016,318
Annual Report as of 31 December 2005 23
Information on changes in value (in relation to the reporting date in TEUR)
Germany Abroad (F, PL, NL, USA) Total
Advisory market values of the portfolio 160,050 146,982 307,032
Advisory valuation returns for the portfolio 8) 10,141 13,427 23,568
Positive changes in value according to expert opinion 9) – – –
Other positive changes in value 10) 77 627 704
Negative changes in value according to expert opinion 9) – – –
Other negative changes in value 10) – 31 – – 31
Total changes in value according to expert opinion 9) – – –
Total other changes in value 10) 46 627 673
Allocation to provisions for capital gains tax – – 169 – 169
Total changes in value 11) 46 458 504
8) Advisory valuation returns mean the gross income from rental stipulated by experts. Gross income here equates to the basic rent (excluding heating, lighting and other service costs) deemed by the experts to be sustainable.
9) Total changes in market values established by the experts10) Other changes in value comprise book value changes, such as post-capitalised costs of acquisition and purchase price settlement.11) The difference between the total change in value and the amounts posted in the development of fund assets results from the net income for the year of the
US equity interest.
Letting information (in % of estimated annual net rental)
Germany Abroad (F, PL, NL, USA) Total
Offices 37.0 24.3 61.3
Industry (warehousing, halls) 7.7 10.4 18.1
Residential 0.0 14.8 14.8
Car park 2.2 1.4 3.6
Retail/catering 1.0 0.2 1.2
Other 0.3 0.7 1.0
Total result 48.2 51.8 100.0
Letting rate (in relation to the reporting date)in % of estimated annual net rental 100 98.5 98.5
Letting rate (in relation to the reporting date)in % of estimated annual gross rental 12) 100 98.7 98.7
12) In addition to the net rent (“basic rent”), the estimated gross rental includes the ancillary costs to be paid by the tenant, such as heating, electricity, cleaning and insurance, which are reproduced on the basis of the prepayments of ancillary costs.
Time to maturity of lease contracts (in % of estimated annual net rental)
Germany Abroad (F, PL, NL, USA) Total
2006 1.3 0.9 2.2
2007 0.0 0.6 0.6
2008 0.0 0.0 0.0
2009 2.6 9.6 12.2
2010 22.1 6.4 28.5
2011 3.8 9.6 13.4
2012 0.0 1.0 1.0
2013 0.0 3.2 3.2
2014 2.3 2.8 5.1
2015 6.6 3.4 10.0
2016 + 9.1 0.0 9.1
Indefinite 1.0 13.7 14.7
Share of estimated total rental in % 48.8 51.2 100.0
24 SEB ImmoPortfolio Target Return Fund
EUR EUR EUR
Fund assets at the beginning of the financial year 36,910,616.71
Interim distribution – 2,321,256.93
Adjustments for units issued or returned up to the date of the interim distribution – 841,346.35
Inflows of funds from unit sales 164,023,273.58Outflows of funds from unit redemptions 0.00Inflow of funds (net) 164,023,273.58
Equalisation paid – 3,223,687.51
Ordinary net income 10,843,377.10
Realised gains less unrealised changes in value ofprevious yearsFor liquidity portfolio 167,150.00
Changes in value in previous years 0.00 167,150.00Of which in foreign currency 0.00
Realised losses less unrealised changes in value ofprevious years
For liquidity portfolio – 198,450.00Changes in value in previous years 0.00 – 198,450.00Of which in foreign currency 0.00
Change in value of unrealised gainsFor properties 301,238.94Of which in foreign currency 0.00For equity interests in real estate companies 365,387.05 666,625.99Of which in foreign currency 365,387.05
Change in value of unrealised lossesFor properties – 30,891.36Of which in foreign currency 0.00
Exchange rate changes – 424,616.31
Fund assets at the end of the financial year 205,570,794.92
Development of Fund Assets
The development of fund assets shows what transactions
led to the new assets posted in the financial statement
during the reporting period. It therefore involves the break-
down of the difference between the assets at the beginning
and end of the financial year.
The interim distribution was carried out on 17 May 2005.
The surplus of income over expenditure for the period
from 1 January 2005 to 30 April 2005 and the retained
surplus of the short financial year from 1 October 2004 to
31 December 2004 were distributed here.
The “Inflows of funds from unit sales” and the “Outflows
of funds from unit redemptions” result from the respective
redemption price multiplied by the number of sold or
redeemed units. The redemption price contains the income
per unit, which is referred to as the equalisation paid.
The inflows and outflows of funds reduced by these
equalisation amounts are therefore reduced to the change
in assets.
The “Ordinary net income” can be found in the Statement
of Income and Expenditure (see page 34).
The “Realised gains” from the liquidity portfolio (securities)
are the difference between the lower purchase prices and
the prices at the time of sale or maturity. The unrealised
changes in value of the liquidity portfolio comprise the
changes in market value of the securities/money market
instruments sold or maturing in the financial year up to
the end of the previous year. Subtracting the unrealised
gains from the previous year produces the realised gains
of the reporting period.
The “Realised losses” are calculated as per the realised
gains.
The realised gains and losses from the liquidity portfolio
also include realised gains and losses from Euro-Bund
future contracts traded on EUREX. The future contracts
were used to hedge the fixed-interest securities against
exchange rate fluctuations.
For properties, the net change in value of the unrealised
gains results from remeasurement gains and/or losses and
changes in book values in the financial year.
With regard to the location of properties, a distinction is
made between countries with the euro and states with a
different currency, unless the corresponding assets are
managed in euros. The contracts of sale and the loan
agreements for the two properties situated in Poland were
concluded in euros. As the lease contracts are managed in
euros, the properties are included in the fund assets with
a market value calculated in euros.
For properties, the net change in value of the unrealised
losses results from remeasurement gains and/or losses and
changes in book values in the financial year.
The “Exchange rate changes” indicate the difference
between the valuation of the foreign currency assets and
the exchange rate at the beginning and – excluding the
result of the remeasurement gains – the exchange rate at
the end of the reporting period. The result of the
remeasurement gains – valued at the exchange rate at the
end of the reporting period – is included in the net change
in unrealised gains/losses for properties, equity interests
in real estate companies and the liquidity portfolio. With
regard to asset investments purchased in the reporting
year, the difference arising from the valuation at the
exchange rate at the time of capitalisation and the exchange
rate at the end of the reporting period is stated. The
exchange rate changes of TEUR – 424.6 contain the net
exchange rate gains of TEUR 335.4 and the result from
the forward exchange transactions concluded for
currency hedging of TEUR – 760.0. The result from
forward exchange transactions comprise realised changes
in value of TEUR – 564.1 as well as unrealised changes in
value of TEUR –195.9.
Notes on the Development of Fund Assets
Annual Report as of 31 December 2005 25
26 SEB ImmoPortfolio Target Return Fund
Statement of Assets as of 31 December 2005
Share in fundassets
EUR EUR EUR in %
I. Properties
1. Commercial properties 271,755,000.00 132.20Of which in foreign currency 0.00
II. Equity interests in real estate companies1. Majority interests 11,012,384.25 5.36
Total in foreign currency 11,012,384.25
III. Liquidity portfolio1. Bank deposits 12,447,819.38 6.06
Of which in foreign currency 834,177.65
IV. Other assets1. Real estate management receivables 1,002,963.24
Of which in foreign currency 575,183.712. Amounts due from real estate companies 476,123.79
Of which in foreign currency 476,123.793. Interest claims 24,014.22
Of which in foreign currency 0.004. Other 4,811,377.95
Of which in foreign currency 290,253.06
Total other assets 6,314,479.20 3.06Total in foreign currency 1,341,560.56
Total I. to IV. 301,529,682.83 146.68Of which in foreign currency 13,188,122.46
V. Liabilities arising from1. Loans 82,277,074.72
Of which secured loans (Section 82 (3) InvG 62,960,000.00(German Investment Act))Total in foreign currency 0.00
2. Real estate purchases and construction projects 9,961,834.87Of which in foreign currency 31,153.05
3. Real estate management 1,916,865.37Of which in foreign currency 1,160,990.86
4. Other reasons 755,476.62Of which in foreign currency 0.00
Total liabilities 94,911,251.58 46.17Total in foreign currency 1,192,143.91
VI. Provisions 1,047,636.33 0.51Of which in foreign currency 61,750.76
Total V. to VI. 95,958,887.91 46.68Of which in foreign currency 1,253,894.67
Fund assets 205,570,794.92 100.00Of which in foreign currency 11,934,227.79
Unit value (EUR) 117.82
Units outstanding (number) 1,744,703
Exchange rates as at 30 December 2005:US dollar 1.182260 = EUR 1Polish zloty 3.861095 = EUR 1
In the financial year from 1 January 2005 to 31 December
2005, fund assets increased by EUR 168.7 million or 456.9%
to EUR 205.6 million.
I. Properties
In the reporting period, three properties in Germany, two
properties in Poland and one property each in the Nether-
lands and France were added to the fund (cf. Real Estate
Record starting on page 30).
Each of the commercial properties was allocated to the
fund assets at the market value calculated by the experts.
In the reporting period, the property assets increased by
EUR 197.0 million to EUR 271.8 million, and thus covered
eleven directly held properties as of 31 December 2005.
II. Equity interests in real estate companies
The first equity interest in a real estate company was pur-
chased in the reporting period. This relates to a 90% stake in
Kings Gainesville Apartments LLC in Gainesville, in the
US state of Florida.
After reducing the market value of the property and
the other assets by the liabilities of the company as well
as the external financing, an equity interest value of
EUR 11.0 million is attained.
III. Liquidity portfolio
The “Bank deposits” posted under “Liquidity portfolio”
are used to cover the ongoing payment obligations arising
from the management of the properties. A sum of EUR
10.3 million is earmarked for the legally prescribed mini-
mum liquidity.
IV. Other assets
The “Real estate management receivables” comprise rent
receivables of EUR 0.1 million and expenditure for the
ancillary costs chargeable to the tenants of EUR 0.9 million.
These are offset by appropriate advance cost share payments
by tenants of EUR 1.4 million, which are included in the
“Real estate management liabilities” item.
A deposit from an interest-bearing purchase price excess
payment relating to an American trust company is posted
under “Amounts due from real estate companies”.
This has not been called on, as it will be used for another
company purchase.
The “Interest claims” arise from the deferred interest
income from term deposit investments.
The other assets posted “Other” mainly constitute sales
tax receivables of EUR 4.5 million due from tax
authorities abroad. In addition, there are corporation tax
receivables of EUR 0.2 million due from the Polish tax
authorities.
V. Liabilities
“Liabilities from loans” relate to loans taken out to
purchase properties. The breakdown of the loan portfolio
by currency and duration as well as the breakdown of
lending volume by fixed interest rate period can be
found on page 11.
“Liabilities from real estate purchases and construction
projects” result from residual payment obligations arising
from property purchases. The properties in Poland account
for EUR 4.9 million of this, followed by the properties at
Lübecker Strasse and Strassenbahnring in Hamburg at
EUR 3.0 million and EUR 1.0 million respectively and the
property in Herblay, France at EUR 1.1 million.
“Liabilities from real estate management” predominantly
consist of EUR 1.4 million for advance cost share payments,
EUR 0.3 million for rent payments already received and
EUR 0.2 million in cash bonds.
Annual Report as of 31 December 2005 27
Notes on the Statement of Assets
“Liabilities for other reasons” include interest loan
liabilities of EUR 0.3 million, management fee and
custodian bank fee receivables of EUR 0.2 million and
sales tax liabilities to the tax authorities in Germany of
EUR 0.1 million.
Three forward exchange transactions with an opening
volume of PLN 62.6 million and five forward exchange
transactions with an opening volume of USD 26.5 million
were concluded in the reporting period to hedge exchange
rate movement risks. Forward exchange transactions
consist of liabilities to counterparties of EUR 0.2 million.
VI. Provisions
Provisions relate to taxes at EUR 0.6 million, maintenance
measures at EUR 0.3 million and audit, publication and
expert costs at EUR 0.1 million. The tax provisions break-
down is EUR 0.4 million for risk provisioning for future
capital gains abroad and EUR 0.2 million for current
income taxes abroad.
Capital gains tax
Taxes on foreign capital gains are only incurred if a book
profit is actually generated. This involves taxes that may
be incurred in future, the level of which is uncertain, as
the market conditions and the bases of taxation are continu-
ously subject to change. To ensure that all investors are
treated as equally as possible, regardless of their time of
entry or exit and taking into account the five to seven-year
retention period of the properties, deferred taxes of this
nature have been fully (100%) allocated to the provisions.
On the basis of the country-specific tax rates, the difference
between the current market values and the tax book
values of the properties, taking into account generally
normal sale costs, was used as a measuring basis for
calculating the level of the provision for deferred taxes on
foreign capital gains. The provision was set up at the
expense of the fund capital with no impact on the
distribution. The allocation in the 2005 financial year
totalled EUR 0.2 million.
28 SEB ImmoPortfolio Target Return Fund
Notes on the Statement of Assets
Annual Report as of 31 December 2005 29
Securities Purchases Sales/disposals Portfolio Market value* Share in
nominal TEUR nominal TEUR nominal TEUR TEUR fund assets
from 01.01.2005 from 01.01.2005 in %
to 31.12.2005 to 31.12.2005
Officially traded securities 3,000 3,000 0 0 0.000
Total securities 3,000 3,000 0 0 0.000
Total securities and money market instrumentsthat are not permitted as security for monetarypolicy operations in the Eurosystem by the ECBor the German Bundesbank 0 0 0 0 0.000
Hedge transactions Purchases Sales equivalent Total volume Sales volume
nominal TEUR value TEUR equiv. value TEUR nominal currency
from 01.01.2005 from 01.01.2005 from 01.01.2005 from 01.01.2005
to 31.12.2005 to 31.12.2005 to 31.12.2005 to 31.12.2005
a) Purchases and sales of financial instruments that were concluded during the reporting period and no longer appear in the financial statement
USD 4,661 4,596 9,257 5,550PLN 15,734 15,235 30,969 62,615
Total 20,395 19,831 40,226
Euro-Bund future 117,882 117,786 235,668
Total 117,882 117,786 235,668
Market Market Preliminary Sales
value of sales value on reporting result nominal
TEUR TEUR TEUR currencies
b) Open items
USD 11,922 12,025 – 103 14,450
Total 11,922 12,025 – 103
Market Market Sales
value of sales value of purchases nominal
TEUR TEUR currencies
c) Closed transactions not yet due
USD 5,360 5,454 6,500
Total 5,360 5,454
* The money market instruments, securities, forward exchange transactions and futures transactions were valued at their stock market price or forward price on 30 December 2005.
Holdings of Money Market Instruments, Securities andHedge Transactions as of 31 December 2005
*
30 SEB ImmoPortfolio Target Return Fund
Property Record as of 31 December 2005
Property location Type of use (in % of rental area)
Post
cod
e
Plac
e
Stre
et
Type
of
prop
erty
Off
ices
Ret
ail/
cate
ring
Indu
stry
(w
areh
ousi
ng, h
alls
)
Hot
el
Res
iden
tial
Leis
ure
Oth
er
Purc
hase
dat
e
Year
of c
onst
ruct
ion/
conv
ersi
on1)
DIRECTLY HELD PROPERTIES IN COUNTRIES IN THE EURO ZONE
Germany
47058 Duisburg Königsberger Allee 28 C 100 0 0 0 0 0 0 02/2002 2003
20097 Hamburg Friesenstrasse 22 / Grüner Deich 21 C 100 0 0 0 0 0 0 05/2005 2000
20251 Hamburg Strassenbahnring 6–18 C 85 15 0 0 0 0 0 10/2005 1900/2004
22087 Hamburg Lübecker Strasse 128 / Landwehr 2 C 98 0 2 0 0 0 0 12/2005 2004
40764 Langenfeld Poensgenstrasse 25 C 13 0 87 0 0 0 0 12/2004 1990/2002
85521 Ottobrunn Robert-Koch-Strasse 100 C 77 0 22 0 0 0 1 12/2004 2002
France
95220 Herblay 41 Avenue de Gros Chêne C 6 0 91 0 0 0 3 12/2005 2005
95310 Saint-Ouen L´Aumône 97 Avenue du Château C 2 0 92 0 0 0 6 10/2001 2001
Netherlands
5928 PR Venlo Celsiusweg 66 C 7 0 93 0 0 0 0 07/2005 1994/2004
DIRECTLY HELD PROPERTIES IN COUNTRIES WITH A DIFFERENT CURRENCY
Poland
2678 Warsaw Szturmowa 2 C/H 88 3 0 0 0 0 9 06/2005 1997
2678 Warsaw Szturmowa 2 a C/H 94 0 2 0 0 0 4 06/2005 2000
Type of property:C = Commercial propertyH = Heritable building right
1) Last year in which major conversion measures, extensions or modernisations were carried out2) The total floor space corresponds to the leased area as of the reporting date.3) Five companies are tenants in both Polish properties.4) The gross rent return represents the quotients of the actual rents in the reporting period divided by the pro rata market value in the reporting period.
This makes it possible to compare properties with each other.
Annual Report as of 31 December 2005 31
Total floor space 2) in m2 Fixtures and fittings Property data
Prop
erty
siz
e in
m2
Com
mer
cial
Res
iden
tial
Dis
tric
t hea
ting
Air
cond
ition
ing/
au
xilia
ry c
oolin
g
Goo
ds li
ft
Pass
enge
r lif
t
Spri
nkle
r sy
stem
Hot
wat
er
(cen
tral
/non
cent
ral)
Cen
tral
hea
ting
Prop
erty
cat
egor
y
Prop
erty
qua
lity
Loca
tion
cate
gory
Num
ber
of te
nant
s 3)
No.
of c
ar p
arki
ng
spac
es
Prop
erty
vac
ancy
ra
te in
% o
fes
timat
ed n
et r
enta
l
Estim
ated
gro
ss re
ntal
4)
in %
1,537 4,680 0 Offices Medium Other city centre locations 1 59 0 7.3
2,162 9,816 0 Offices Medium Non-central office centre 1 57 0 6.5
7,528 8,487 0 Offices High Other city centre locations 10 176 0 6.0
5,727 16,404 0 Offices High Other city centre locations 13 122 n.a. n.a.
37,772 23,752 0 Logistics Medium Established logistics location 2 147 0 8.0
18,048 20,493 0 Offices High Industrial zone 1 218 0 7.7
34,397 17,499 0 Logistics High Established logistics location 2 163 n.a. n.a.
20,647 11,309 0 Logistics High Established logistics location 1 124 0 9.1
34,607 22,160 0 Logistics High Established logistics location 2 42 0 8.3
9,928 12,276 0 Offices Medium Non-central office centre 12 186 0 9.3
5,667 19,393 0 Offices High Non-central office centre 11 351 0 8.2
Property Record as of 31 December 2005
32 SEB ImmoPortfolio Target Return Fund
Property location Type of use (in % of rental area)
Com
pany
/le
gal f
orm
Com
pany
hea
dof
fice
Type
of
prop
erty
Off
ices
Ret
ail/
cate
ring
Indu
stry
(w
areh
ousi
ng, h
alls
)
Hot
el
Res
iden
tial
Leis
ure
Oth
er
Purc
hase
dat
e
PROPERTIES HELD BY REAL ESTATE COMPANIES IN OTHER CURRENCY
Kings Gainesville Apartments, LLC
Joint capital: EUR 10,310,311.53 32608 Gainesville, USA, 32601 Gainesville, R 0 0 0 0 100 0 0 11/2005Shareholder loans: USD 0.00 2330 SW Williston Road 2220 North Main StreetEquity investment stake: 90.00000%
Type of property:R = Residential property for letting
1) Last year in which major conversion measures, extensions or modernisations were carried out2) The total floor space corresponds to the leased area as of the reporting date.3) The gross rent return represents the quotients of the actual rents in the reporting period divided by the pro rata market value in the reporting period.
This makes it possible to compare properties with each other.
Type of use Part of Skeleton/framed/ Solid construction Windows Roofs Sanitarybuilding framework structure installations
Office simple Simple walls, wooden and Brickwork with plaster or Wood, single glazing Corrugated fibre cement/ Small number of basic sheet metal lining, combined bedding and sheet metal roofing, toilet facilities, surface-fibre cement siding pointing and paint bitumen/plastic film seal mounted fittings
medium Lightweight concrete walls with Thermal insulation plaster, thermal insulation Wood, plastic, Concrete roof tiles, medium Adequate number of thermal insulation, concrete composite system, exposed brickwork with insulation glazing thermal insulation standard toilet facilities, wet-sandwich elements, 12-25 cm combined bedding and pointing and paint, rooms: tiles, flush-infill, surface-mounted fittings medium thermal insulation standard mounted fittings
high High-density concrete plates, Faced brickwork, metal siding Aluminium, shutters, Clay roof tiles, slate/metal Good quality faced brickwork, clinker, curtain wall, high thermal standard solar shading system, covering, high thermal toilet fittingsup to 30 cm infill thermal protection insulation standard
glazing
very high Glass siding, Natural stone Floor-to-ceiling glazing, Large number of skylights, Generous toilet facilities over 30 cm infill large sliding panels, elaborate roof extensions with sanitary facilities,
electric shutters, and roof heightening, high standardsound-proof glazing glass roof cut-outs
Retail simple Simple walls, wooden and sheet Brickwork with plaster or combined Wood, single glazing Corrugated fibre cement/ Small number of basic metal lining, fibre cement siding bedding and pointing and sheet metal roofing, toilet facilities, surface-
paint fittings bitumen/plastic film seal mounted fittings
medium Lightweight concrete walls Thermal insulation plaster, thermal insulation Wood, plastic, Concrete roof tiles, Adequate number of with thermal insulation, composite system, exposed brickwork with insulation glazing medium thermal toilet facilities, flush-concrete sandwich elements, combined bedding and pointing and paint, insulation standard mounted fittings12-25 cm infill medium thermal insulation standard
high High-density concrete plates, Faced brickwork, metal siding, Aluminium, shutters, Clay roof tiles, slate/metal Good qualityfaced brickwork, clinker, curtain wall, high thermal standard solar shading system, ther- covering, high thermal toilet fittingsup to 30 cm infill mal protection glazing insulation standard
Logistics simple Glass siding, Brickwork with plaster or Wood, single glazing Corrugated fibre cement/ Basic toilet facilities, over 30 cm infill combined bedding and pointing sheet metal roofing, small number of showers,
and paint fittings bitumen/plastic film seal surface-mounted fittings
medium Simple walls, wooden and Thermal insulation plaster, thermal insulation Wood, plastic, Concrete roof tiles, Adequate toilet facilities, sheet metal lining, composite system, exposed brickwork with insulation glazing medium thermal several showers, some fibre cement siding combined bedding and pointing and paint, insulation standard surface-mounted fittings
medium thermal insulation standard
Assessment of property quality based on standard production costs in 2000
Annual Report as of 31 December 2005 33
Total floor space 2) in m2 Fixtures and fittings Property data
Year
of c
onst
ruct
ion/
conv
ersi
on1)
Prop
erty
siz
e in
m2
Com
mer
cial
Res
iden
tial
Dis
tric
t hea
ting
Air
cond
ition
ing/
auxi
liary
coo
ling
Goo
ds li
ft
Pass
enge
r lif
t
Spri
nkle
r sy
stem
Hot
wat
er
(cen
tral
/non
cent
ral)
Cen
tral
hea
ting
Prop
erty
cat
egor
y
Prop
erty
qua
lity
Loca
tion
cate
gory
Num
ber
of te
nant
s
No.
of c
ar p
arki
ng
spac
es
Prop
erty
vac
ancy
rat
e in
% o
fes
timat
ed n
et r
enta
l
Gro
ss in
com
e3)
in %
1989/1994 143,346 0 40,855 Miscellaneous n.a. Other city centre locations 512 1,173 9.8 n.a.
Interior wall covering Floor coverings Interior doors Heating Electronic fittings Installations and of wetrooms other fittings
Oil-based paintwork Wooden floorboards, needle felt, Panel framed doors, Individual stoves, One lighting outlet and n.a.linoleum, PVC, wetrooms: painted leaves and frames electric storage heating, 1-2 surfaced-mounted PVC boilers for hot water sockets per room
Part-tiled walls (1.50 m) Carpet, PVC, tiles, linoleum, Plastic/wooden leaves, Central heating with 1-2 lighting outlets n.a.wetrooms: tiles steel frames radiators (gravity and 2-3 surfaced-
hot water system) mounted sockets per room; IT facilities
Floor-to-ceiling tiles Large tiles, parquet, cast stone, Leaves with high-quality Central heating/pumped Several lighting outlets n.a.wetrooms: large tiles, wood veneer, glass doors, heating system with flat and sockets per room, sillcoated special tiles wooden frames radiators, central water heating trunking with IT cabling
Natural stone, Natural stone, elaborately Solid construction, intruder Under floor heating, Elaborate fittings, n.a.elaborately laid laid, wetrooms: protection, suitable for air conditioning and security facilities
natural stone use by the disabled, other HVAC systemsautomatic doors
Oil-based paintwork Wooden floorboards, linoleum, n.a. Individual stoves, Basic surface- n.a.PVC, wetrooms: PVC electric storage heating, mounted fittings
boilers for hot water
Part-tiled walls (1.50 m) Coated screed, mastic asphalt, n.a. Warm air heating units, warm Adequate flush- n.a.wetrooms: tiles air heating units connected mounted fittings
to central boiling system, district heating
Floor-to-ceiling tiles Tiles, wood block flooring, n.a. Central heating/pumped Elaborate fittings, n.a.cast stone, wetrooms: large tiles heating system with flat security facilities
radiators, central water heating
Oil-based paintwork Rough concrete, paint n.a. Warm air heating with n.a. Surface-mounted power a direct-fired system and water outlets,
cooking facilities, sink
Part-tiled walls (1.50 m) Screed, mastic asphalt, n.a. Central heating n.a. Surface-mounted power block paving without bedding and water outlets, kitchenette
34 SEB ImmoPortfolio Target Return Fund
EUR EUR EUR
I. Income
1. Income from properties 11,270,018.28Of which in foreign currency 3,649,822.90
2. Income from liquidity portfolio2.1 Income from bank deposits 213,433.20
Of which in foreign currency 14,222.792.2 Income from securities 36,061.64
Of which in foreign currency 0.003. Income from development project interest 79,472.594. Other income 12,123.56
Of which in foreign currency 11,808.76
Total income 11,611,109.27
II. Expenditure
1. Operating costs1.1 Running costs 193,415.90
Of which in foreign currency 131,397.941.2 Maintenance costs 383,144.13
Of which in foreign currency 63,770.911.3 Real estate management costs 29,759.48
Of which in foreign currency 23,618.762. Interest expenditure 1,380,913.54
Of which in foreign currency 1,089.833. Foreign taxes 585,375.524. Fund management costs
4.1 Fund management fees 1,120,594.624.2 Custodian bank fees 26,979.294.3 Expert costs 21,145.284.4 Other expenditure according to Section 12 (5) BVB 250,091.92
Total expenditure 3,991,419.68
III. Equalisation paid + 3,223,687.51
Ordinary net income 10,843,377.10
Total expense ratio (TER) 1.20 %
Statement of Income and Expenditure from 1 January 2005 to 31 December 2005
Calculation of distribution
total per unitin EUR in EUR
Ordinary net income 10,843,377.10 6.22
Realised gainsFor liquidity portfolio 65,200.00 0.04
Carried forward from previous year 511,125.26 0.29
Deduction of surplus according Section 13 (2) BVB – 25,989.83 – 0.01
Interim distribution as at 30 April 2005* – 2,321,256.93 – 1.33
Available for distribution 9,072,455.60 5.20
Balance carried forward 0.00 0.00
Total distribution 9,072,455.60 5.20
* The interim distribution was carried out on 17 May 2005
Income
“Income from properties” covers the rental income of the
German and foreign properties of the fund. “Income from
liquidity portfolio” consists of interest income from time
and sight deposits of EUR 0.2 million as well as TEUR 36.1
in income from fixed-interest securities, all of which was
generated from one security listed in euros.
Income from project development interest involves imputed
interest at market rates for the capital of the fund that is
tied up during the construction period. In the reporting
year, TEUR 79.5 was calculated in interim interest for the
property in Herblay, France, which was completed and
transferred to the property assets in the reporting period.
The “Other income” item mainly consists of interest
income from the deposit with an American trust company
(TEUR 11.8). This is needed for a further company purchase
in the USA.
Expenditure
“Operating costs” comprise running costs of TEUR 193.4
as well as maintenance costs of TEUR 383.1 and real estate
management costs, which cannot be passed onto the tenants,
of TEUR 29.8.
“Interest expenditure” mainly results from the external
financing of property purchases.
The fund spent or allocated EUR 0.6 million for the payment
of foreign income taxes.
The provisions for taxes on capital gains are taken directly
from the fund assets, as they are not subject to any detailed
disposal plans.
The “Fund management costs” item includes the fund
management fees, the custodian bank fees and other
expenditure according to Section 12 BVB.
“Fund management fees” amount to EUR 1.1 million or
0.90% p.a. of the average fund assets. According to the
Fund Rules, fees of up to 1.5% p.a. of the average fund
assets are possible. In addition, a performance-related
fee of TEUR 52.7 or 0.05% of the average fund assets was
taken in accordance with Section 12 (3) BVB. From the
management fees it receives, the investment company
grants agency fees as “trail commission” to agents, e.g.
banks, on a recurring, usually annual, basis.
In accordance with Section 12 (4) BVB, the custodian bank
receives custodian bank fees of 0.005% of the fund assets
as of the end of a calendar quarter.
The members of the Expert Committee receive a fee for
the legally prescribed annual revaluation. The costs for
the expert assessment report are recorded as costs of
acquisition and accordingly are not included in the State-
ment of Income and Expenditure.
“Other expenditure according to Section 12 (5) BVB”
consists of paid and deferred costs for the annual report,
the audit of the fund and consultancy costs and fees.
Furthermore, “Other expenditure according to Section
12 (5) BVB” contains capital gains tax and the solidarity
surcharge paid by the fund in accordance with Section
7 (4) Investmentsteuergesetz (German Investment Tax Act)
as a result of the retention of the profit as of 31 December
2004 (TEUR 77.8).
In addition, construction and purchase fees in accordance
with Section 12 (2) BVB of EUR 2.0 million were incurred
in the reporting year.
Equalisation paid
The “Equalisation paid” is the balance of income and
expenditure that is paid by the unit investor in the issuing
price as equalisation for accrued income or remunerated
by the fund in the event of redemption of units in the
Annual Report as of 31 December 2005 35
Notes on the Statement of Income and Expenditure
redemption price. EUR 2.2 million of this relates to
equalisation for income in Germany and EUR 1.0 relates
to equalisation for foreign income.
Total expense ratio (TER)
The “Total expense ratio” indicates the level of the impact
of costs on the fund assets. Items taken into account here
are the management fee and custodian bank fee, the costs
of the Expert Committee and other costs in accordance
with Section 12 BVB, with the exception of transaction
costs. The TER shows the total amount of these costs as
a percentage of the average fund assets within a financial
year and thus leads to results that correspond to inter-
national standards for cost transparency. The calculation
method corresponds to that recommended by the BVI.
The TER for the SEB ImmoPortfolio Target Return Fund is
1.20%.
36 SEB ImmoPortfolio Target Return Fund
Notes on the Statement of Income and Expenditure
Notes on calculation of the distribution
In accordance with Section 13 (2) BVB, TEUR 26.0 is
deducted from the “Ordinary net income” of EUR 10.8
million plus realised gains from liquidity investments of
TEUR 65.2 as well as the carryforward from the previous
year of EUR 0.5 million in order to equalise impairments.
In addition, the amount available for distribution is
reduced by the interim distribution of the profit as at
30 April 2005 of EUR 2.3 million. With an outstanding
units figure of 1,744,703, the remaining net income for the
year of EUR 9.1 million is to be distributed at EUR 5.20
per unit.
Annual Report as of 31 December 2005 37
Auditor’s Certificate
We audited the annual report of the SEB ImmoPortfolio
Target Return Fund in accordance with Section 44 (5) of
the Investmentgesetz (German Investment Act, InvG),
together with the bookkeeping system, for the financial
year from 1 January 2005 to 31 December 2005. The
bookkeeping system and the preparation of the annual
report in accordance with the regulations of the InvG are the
responsibility of the legal representatives of the investment
company. Our responsibility is to express an opinion on the
annual report, together with the bookkeeping system, based
on our audit.
We conducted our audit in accordance with Section 44 (5)
InvG and the generally accepted standards for the audit of
financial statements promulgated by the Institut der Wirt-
schaftsprüfer (German Institute of Chartered Accountants,
IDW). These principles require that we plan and perform
the audit such that misstatements materially affecting the
annual report and proper accounting are detected with re-
asonable assurance. Knowledge of the management of the
fund and evaluations of possible misstatements are taken
into account in the determination of audit procedures.
The effectiveness of the internal accounting control system
and the evidence supporting the disclosures in the books
and records and the annual report are examined primarily
on a test basis within the framework of the audit. The
audit includes an assessment of the accounting principles
applied to the annual report. We believe that our audit
provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
Frankfurt am Main, 3 March 2006
PricewaterhouseCoopersAktiengesellschaftAuditors
(Handrick) (ppa. Sundermann)
Auditor Auditor
38 SEB ImmoPortfolio Target Return Fund
Tax Information for Investors
Taxation at fund level
In Germany, legislators have exempted the real estate fund
from all taxes on income and assets. Taxation of income is
charged to the investors.
Taxation at private investor level
If the units are held as private assets, the taxable income
of the fund is income from capital assets. This income must
be taxed in the year of accrual and stated in the income
tax return in the investment income annex for German
investment income provided that, combined with other
investment income, it exceeds the saver’s allowance
including the allowance for professional expenditure of
EUR 1,421 per year (for single persons or separately taxed
married persons) or EUR 2,842 (for jointly taxed married
couples).
If the income fully or partially consists of income from
employment from which tax has been deducted, an
assessment for income tax is only carried out if the income
subject to income tax that is not subject to wage tax
deduction (e.g. the taxable portion of the distribution of
the fund) or the income subject to progression (e.g. the
pro rata tax-free foreign property income of the fund)
exceed EUR 410.
The distribution for the 2005 financial year on 15 March 2006 amounts to EUR 5.20 per unit.
The tax treatment of the distribution is as follows:
Tax treatment of the distribution per unit
Private assets For units in the For units in theoperating assets of operating assets ofinvestors subject to investors subject to
income tax corporation taxEUR EUR EUR
Distribution 1) 5.2000 5.2000 5.2000
Of which tax-freeImputed interim interest 0.0456 0.0440 0.0440Tax-free earnings in accordance with double taxation agreements 2) 1.9686 1.9686 1.9686Capital gain on securities 0.0072 0.0000 0.0000Negative retained income 3) 0.4982 0.4982 0.4982Other non-taxable income 4) 0.0094 0.0000 0.0000
2.5290 2.5108 2.5108
Of which subject to tax 2.6710 2.6892 2.6892
Measuring basis for withholding tax 5) 2.6710Withholding tax – units held with (30%) 6) 0.8013Withholding tax – units held under own custody (35%) 6) 0.9349
1) After the interim distribution on 30 April 20052) The income accrued from abroad that is not to be taxed again in Germany as a result of double taxation agreements (exemption method) is subject to progression.
Progression means that the tax-free income is to be taken into account when setting the individual tax rate to be applied to the taxable income of the respectiveinvestor. However, as income from abroad is only subject to progression at the level at which it would have accrued after taking into account the depreciation of the foreign properties permitted under German tax legislation, this income is to be stated in the tax return (foreign income and taxes annex) of the foreign investor –broken down by country (France: EUR 0.3256 per unit, Netherlands: EUR 0.2909 per unit, Poland: EUR 1.9120 per unit, USA: EUR 0.0463 per unit) – for calculationof the individual tax rate.
3) Tax-free difference between the investment-related Statement of Income and Expenditure and the tax accounting4) These items do not involve income as defined by Section 1 (3) InvStG (German Income Tax Act)5) Calculation after the result for private investors6) Plus solidarity surcharge of 5.5%
Investors are only taxed for half of any German and foreign
dividends, including those of real estate investment
companies, that are distributed or retained by the fund
(half-income method).
In particular, rental, interest and dividend income that is
not used for distribution is regarded as accrued in relation
to the investors. The fund assets include properties located
abroad. Rental income from them is generally accrued in
Germany on a tax-free basis as a result of the existing
double taxation agreements. However, it is subject to
progression, i.e. the tax-free income is to be taken into
account when setting the individual tax rate to be calculated
for the taxable income of the respective investor. Such
taxable income subject to progression is to be stated in the
foreign income and taxes annex of the income tax return,
broken down by country (France: EUR 0.3256 per unit,
Netherlands: EUR 0.2909 per unit, Poland: EUR 1.9120 per
unit, USA: EUR 0.0463 per unit).
The investor must never be taxed on gains from the sale
of German and foreign properties outside the ten-year
period that are generated at fund level. The investor
must always be taxed on gains from the sale of German
properties within the ten-year period that are generated
at fund level. This applies regardless of whether the gains
are used for distribution or retained.
Gains from the sale of foreign properties within the ten-year
period that Germany has not taxed as a result of a double
taxation agreement remain tax-free.
However, the amount accrued from abroad that is not to
be taxed again in Germany as a result of double taxation
agreements is subject to progression. These gains must be
stated in the foreign income and taxes annex. Disbursements
of assets (e.g. in the form of interim interest) are not taxable.
Taxation at corporate investor level
Investors who hold their units in the operating assets
generally generate commercial income. Investors subject
to income tax are only taxed for half of any German and
foreign dividends, including those of real estate investment
companies, that are distributed or retained by the fund
(half-income method). With regard to investors subject to
corporation tax, this income is generally tax-free (although
5% of the dividends is regarded as non-deductible
operating expenses). For tax purposes, an equalising item
on the liabilities side must be taken into account for the
allowance for depreciation posted in the table on page 42
under letter g.
The equalising item on the liabilities side must be written
back when the units are sold or redeemed. Dividends,
interest and rent not used for distribution are regarded as
accrued. For tax purposes, an equalising item on the
assets side is to be set up in the amount of the income
regarded as accrued. The equalising item on the assets
side must be written back when the units are sold or
redeemed or if the retained amounts are used for distribu-
tion. Income that is tax-free in accordance with double
taxation agreements and income that is subject to the
half-income method must be reduced by the profit according
to the financial and tax accounts when preparing the
income tax or corporation tax return (with income that is
subject to the half-income process and accrued by investors
subject to income tax, only 50% of this income must be
reduced).
Capital gains/withholding tax
The taxable income is always subject to withholding tax.
The custodian bank where the units are held must withhold
30% of the portion of income subject to withholding tax in
the event of payment to private customers resident in
Germany as an interest deduction and transfer it to the
Tax Office. With over-the-counter transactions, the interest
deduction is 35%. Non-resident taxpayers receive the
distribution with no tax deduction if the units are held by
a German or foreign custodian bank.
The withholding tax paid is certified to the investor and
must be entered in the investment income annex as
chargeable tax (German capital gains tax) and charged to
income tax. The portions of income subject to capital gains
tax included in the distribution are fully exempted from
the interest deduction if a non-assessment note is submitted
or in the event of proof of foreign nationality to the
custodian bank, and exempted up to the level of the saver’s
Annual Report as of 31 December 2005 39
Tax Information for Investors
allowance including the allowance for professional expen-
diture (EUR 1,421/EUR 2,842) if an exemption order is
submitted. In the event of distribution or retention, German
dividends are fully subject to capital gains tax at 20%. The
capital gains tax is immediately refunded to the private
investor if the units are held at an investment company or
another German bank and an exemption order at a suitable
level or a non-assessment note exists. As regards private
investors, only half of German dividends are charged to
the exemption order (half-income method). If an exemption
order or non-assessment note is not received in time, the
investor can charge the withheld capital gains tax and the
solidarity surcharge to his personal income tax liability,
enclosing the tax certificate of its custodian body.
The capital gains tax incurred by the individual investor
is calculated as followed at the disposition of the tax
authorities. The income per unit subject to capital gains
tax included in the distribution must first be multiplied by
the number of units held by the investor on the distribution
date. 30% of the withholding tax must be calculated from
this. The same procedure applies to capital gains tax on
dividends. Here, the dividend portion attributed to the
individual investor is multiplied by 20% to calculate the
capital gains tax. If the units are in the operating assets,
an exemption from or remuneration of the interest deduction
and reimbursement of the capital gains tax are only
possible if a non-assessment note is submitted. Otherwise,
the investor receives a corresponding tax certificate.
Solidarity surcharge
The solidarity surcharge on income and corporation tax is
5.5%. If distributions from the units are subject to the
capital gains tax deduction/interest deduction, the withheld
capital gains tax is a measuring basis for the solidarity
surcharge. The solidarity surcharge is reported separate-
ly in the tax certificate. It is chargeable to the solidarity
surcharge to be definitively set in the context of the income
or corporation tax assessment. Any excess payment of a
solidarity surcharge is reimbursed.
Private disposal transactions
If investment units in a real estate fund are resold by a
private investor within one year of acquisition (speculative
period), capital gains are taxable as income from private
disposal transactions and must be stated by the investor
in the income tax return (other income annex). In the event
of disposal outside the speculative period, the gain for
private investors is tax-free. When calculating the capital
gain, the costs of acquisition must be reduced by the
interim gain at the time of acquisition and the disposal
price must be reduced by the interim gain at the time of
disposal, so that there cannot be any double income tax
assessment of interim gains (see below). The half-income
method is not applied to the capital gain.
Interim gain taxation
Taxation on interim gains came into force again on
1 January 2005. Interim gains are the fees for recovered or
accrued interest included in the sale or redemption price
that have not yet been distributed or retained by the fund
and on which the investor therefore cannot yet be charged
tax (roughly comparable to interest accrued from fixed-
interest securities). The interest and interest claims
generated from the fund are subject to income and capital
gains tax when the units are redeemed or sold by resident
taxpayers.
Capital gains tax on the interim profit is 30% for units
held with custodian banks and 35% for units held under
own custody (plus 5.5% solidarity surcharge on the capital
gains tax in each case). The retained tax is an advance
payment on the income tax and must be entered in the
investment income annex.
The interim gain paid when purchasing units can be
deducted from income tax in the year of payment as
negative income. This is also taken into account as a tax-
reducing factor in the event of tax deduction. In addition,
the tax deduction is not necessary in the context of an
exemption order or if a non-assessment note is submitted.
Non-resident taxpayers are also excluded from the tax
deduction here. The following are not factored in when
calculating the interim gain: income from letting and
leasing, and from valuation and sale of the properties. The
interim gain is calculated and published on each value
date whenever the unit value is ascertained. Interim gains
to be recorded by the investor in the investment income
40 SEB ImmoPortfolio Target Return Fund
annex of the income tax return are arrived at by multiplying
the respective interim gain per unit by the number of
units stated in the statement of purchase or sale. The interim
gains can also be regularly found in the statements and
earnings declarations of the banks. The interim gain was
set at an initial value of EUR 0 on 1 January 2005.
Gain from real estate and shares
The regulations on gain from real estate and shares are only
applicable to investors who hold their units in operating
assets.
The fund gain from real estate includes foreign rent not yet
accrued or not yet regarded as accrued as well as realised
and unrealised changes in value of foreign properties of
the fund, provided that Germany has waived taxation
in accordance with a double taxation agreement. The
investment company publishes the fund gain on real
estate as a percentage of the value of the investment unit.
The fund gain from shares includes the dividend income
not yet accrued by the investor or not yet regarded as
accrued, including from investment companies, realised
or unrealised gains and losses arising from an equity
interest in the fund, in particular in investment companies.
The investment company publishes the fund gain on shares
on each trading day as a percentage of the value of the
Annual Report as of 31 December 2005 41
investment unit. On the date of purchase and sale of the
shares and on the balance sheet date, the investor must
multiply the posted percentages by the respective redemp-
tion price in order to calculate an absolute investor gain
from real estate or shares. The difference from both figures
represents the tax-relevant investor gain from real estate
or shares of the investor for the time of ownership. For all
corporate investors, a gain from the sale of investment units
is fully tax-free, provided that it results from the absolute
investor gain from real estate for the time of ownership.
For investors who hold their units in the operating assets
and are taxed in accordance with the Körperschaftsteuer-
gesetz (German Corporation Tax Act), a gain from the sale
of investment units is fully tax-free, provided that it results
from the absolute investor gain from shares for the time of
ownership. However, 5% of these tax-free gains is regarded
as non-deductible operating expenses. For investors
subject to income tax who hold their units in the operating
assets, half of the gain from the sale of investment units
is tax-free, provided that it results from the investor gain
from shares for the time of ownership.
Note
Further details on the tax treatment of the fund income
can be found in the summary information in the sales
brochure on the tax regulations of interest to unit holders.
Tax Information for Investors
42 SEB ImmoPortfolio Target Return Fund
Private assets For units in the For units in theoperating assets of operating assets ofinvestors subject to investors subject to
income tax corporation taxAmount per unit Amount per unit Amount per unit
in EUR in EUR in EUR
Section 5 (1) InvStG lettera) Amount of distribution 5.2000 5.2000 5.2000b) Amount of income to be distributed 4.6468 4.6578 4.6578
(share of the income from the previous year in the distribution, i.e. excluding carryforward from the previous year and excluding interim interest)
c) Any of the following included in the distribution:aa) Deemed distribution income of previous years
(carryforward from the previous year) 0.0000 0.0000 0.0000
bb) Tax-free capital gain on securities 0.0072
cc) German and foreign dividend income, half tax-free 0.0000 1) 0.0000 1)
dd) German and foreign dividend income, tax-free for corporations 0.0000
ee) Capital gains on shares, half tax-free 0.0000 1)
ff) Capital gains on shares, tax-free for corporations 0.0000
gg) Tax-free capital gains on subscription rights for gratuitous shares in investment companies 0.0000
hh) Tax-free real estate capital gains outside the speculative period of 10 years 0.0000
ii) Tax-free foreign income, subject to progression in Germany 1.9686 1.9686 1.9686
jj) Foreign income with chargeable foreign withholding tax 0.0000 0.0000 0.0000
kk) Foreign income with matching foreign withholding tax 0.0000 0.0000 0.0000
d) Distribution portion warranting charging or reimbursement of capital gains tax
aa) Measuring basis for withholding tax 2.6710 2.6710 2.6710
bb) Measuring basis for capital gains tax 0.0000 0.0000 0.0000
e) Amount of capital gains tax to be charged or reimbursedaa) Withholding tax (30% of above measuring basis) 0.8013 2) 0.8013 2) 0.8013 2)
bb) Capital gains tax (20% of above measuring basis) 0.0000 2) 0.0000 2) 0.0000 2)
f) Amount of foreign taxes for foreign income taxed in Germanyaa) Chargeable foreign withholding tax 0.0000 0.0000 0.0000
bb) Deductible foreign withholding tax 0.0000 0.0000 0.0000
cc) Matching foreign withholding tax 0.0000 0.0000 0.0000
g) Amount of allowance for depreciation or asset depletion (Building depreciation under German law) 1.0851 1.0851 1.0851
h) Amount by which the distributing entity claimed a reduction in its corporation tax liability under Section 37 (3) of the Körperschaft-steuergesetz (German Corporation Tax Act) 0.0000
1) The income is posted in full (half of which is tax-free).2) Plus solidarity surcharge
Documentation of the bases of taxation according to Section 5 (1) sentence 1 no. 1 InvStG (German Investment Tax Act)
With regard to the investment company SEB Immobilien-
Investment GmbH (hereinafter referred to as “the
Company”): In accordance with Section 5 (1) sentence 1
no. 3 InvStG, the Company commissioned us to undertake
an audit to determine whether or not the figures to be
published by the Company for the SEB ImmoPortfolio
Target Return Fund for the period from 1 January 2005
to 31 December 2005 pursuant to Section 5 (1) sentence 1
nos. 1 and 2 InvStG were calculated in accordance with
the rules of German taxation law.
Calculation of the tax figures in accordance with Section 5
(1) sentence 1 nos. 1 and 2 InvStG in conjunction with the
regulations of German taxation law is the responsibility of
the legal representatives of the Company. Insofar as the
Company has invested funds in units in other investment
assets (target funds), it has used the tax figures at its
disposal for these target funds.
Our responsibility is to express an opinion as to whether
the figures to be prepared by the Company in accordance
with the provisions of the InvStg were calculated in line
with the rules of German taxation law, based on our audit.
Insofar as the Company has invested funds in units in tar-
get funds, our audit was limited to the correct transfer of
the tax figures by the Company from other tax figures
provided for these target funds in accordance with available
certificates. Our audit did not cover the corresponding tax
figures.
We conducted our audit in accordance with the generally
accepted standards for the audit of financial statements
promulgated by the Institut der Wirtschaftsprüfer (German
Institute of Chartered Accountants, IDW). These principles
require that we plan and perform the audit such that it is
possible to detect with reasonable assurance whether the
figures pursuant to Section 5 (1) sentence 1 nos. 1 and 2
InvStG are free of material errors. Knowledge of the
management of the investment assets and evaluations of
possible misstatements are taken into account in the
determination of audit procedures. The effectiveness of
the internal accounting control system relating to the
calculation of the figures pursuant to Section 5 (1) sentence 1
nos. 1 and 2 and the evidence supporting the tax figures
are examined primarily on a test basis within the frame-
work of the audit.
The audit also includes an assessment of the interpretation
of the applied taxation laws by the Company. There are no
objections to the interpretation selected by the Company if
it was justifiably supported by preparatory documents,
case law, relevant specialist literature and published
opinions by the tax authorities. We would like to point out
that future legislative developments and, in particular,
new findings from case law, may necessitate another
assessment of the interpretation taken by the Company.
We believe that our audit provides a reasonable basis for
our opinion. On this basis, we certify to the Company in
accordance with Section 5 (1) sentence 1 no. 3 InvStG that
the figures pursuant to Section 5 (1) sentence 1 nos. 1 and
2 InvStG were calculated in accordance with the rules of
German taxation law.
Frankfurt am Main, 3 March 2006
PwC FS Tax GmbHWirtschaftsprüfungsgesellschaft
Steuerberatungsgesellschaft
Hans-Ulrich Lauermann Markus Hammer
Tax consultant Tax consultant
Annual Report as of 31 December 2005 43
Statement pursuant to Section 5 (1) sentence 1 no. 3Investmentsteuergesetz (German Investment Tax Act, InvStG) on theaudit of the tax figures
Investment company
SEB Immobilien-Investment GmbHStützeläckerweg 14, D-60489 Frankfurt am MainPost office box 94 02 73, D-60460 Frankfurt am MainTelephone: +49 (0) 69 78 07 01-0Telefax: +49 (0) 69 78 07 01-9 20
Subscribed and paid-up capital EUR 5.113 millionLiable capital EUR 4.404 million(As of 31 December 2005)
Frankfurt am Main Commercial Register, HRB 29859Established on 30 September 1988
Management
Barbara A. KnoflachAxel KrausChoy-Soon Chua (from 1 January 2006)
Supervisory Board
Fredrik BohemanChairman of the Board of Directors of SEB AG, Frankfurt am Main– Chairman – (from 1 February 2005)
Peter BuschbeckMember of the Board of Directors of SEB AG,Frankfurt am Main– Deputy Chairman – (from 29 December 2005)
Harry KlagsbrunSEB Asset ManagementCEO (from 29 December 2005)
Thomas EricssonSEB Asset ManagementGlobal Head of Operations (from 29 December 2005)
Petteri KarttunenGyllenberg Asset ManagementManaging Director (from 29 December 2005)
William PausHead of SEB Merchant Banking (from 29 December 2005)
Wolfgang ArgelanderMember of the Board of Directors of SEB AG,Frankfurt am Main (1 February 2005 to 28 December 2005)
Renate Bloß-BarkowskiMember of the Board of Directors of SEB AG, Frankfurt am Main– Deputy Chairman – (until 28 December 2005)
Dr. Thomas AltenhainChairman of the Board of Directors of SEB AG, Frankfurt am Main– Chairman – (until 31 January 2005)
Jan LindbergMember of the Board of Directors of SEB AG, Frankfurt am Main (until 31 January 2005)
Auditors
PricewaterhouseCoopers AktiengesellschaftAuditors, Frankfurt am Main
Shareholder
SEB AG, Frankfurt am Main (100 %)
Custodian bank
SEB AG, Ulmenstrasse 30, D-60325 Frankfurt am Main
Subscribed and paid-up capital EUR 0.775 billionLiable capital EUR 2.299 billion(As of 31 December 2005)
Expert Committee
Klaus Peter Keunecke, Dr.-Ing.Publicly appointed and sworn expert for the valuation ofrent and developed and undeveloped properties, Berlin– Chairman –
Hans-Joachim Ackermann, architect/Dipl.-Ing.Publicly appointed and sworn expert for costing instructural engineering and valuation of real estate,Dortmund– Deputy Chairman –
Albrecht Novak, Dipl.-Ing./architectPublicly appointed and sworn expert for general structur-al engineering and valuation of developed andundeveloped properties, rent, Stuttgart
Ulrich Renner, Dipl.-Kfm.Publicly appointed and sworn expert for valuation ofdeveloped and undeveloped properties, Wuppertal
Günter Schäffler, Dr.-Ing. Publicly appointed and sworn expert for construction costplanning and control, valuation of undeveloped anddeveloped properties, rent for properties and buildings,Stuttgart
Prof. Michael Sohni, Dr.-Ing. Publicly appointed and sworn expert for valuation ofdeveloped and undeveloped properties, Darmstadt
Bodies
44 SEB ImmoPortfolio Target Return Fund
Investment company: SEB Immobilien-Investment GmbH Stützeläckerweg 14 D-60489 Frankfurt am Main, GermanyP.O. Box 94 02 73 D-60460 Frankfurt am Main, GermanyInternet: www.SEBAM.dePhone: +49 (0) 69 78 07 01-0 Fax: +49 (0) 69 78 07 01-9 20
Sales: SEB Asset Management AG Ben-Gurion-Ring 160 D-60437 Frankfurt am Main, Germany
IMM
OPO
JBEV
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