annual report 31 Mar 2006 - SEB Asset Management

sebassetmanagement

annual report 31 Mar 2006 - SEB Asset Management

SEB ImmoInvest

Annual Report as of 31 March 2006

SEB Asset Management


SEB ImmoInvest at a glance as of 31 March 2006

Fund assets EUR 4,806.6 million

Total property assets (market values) EUR 4,977.3 million

thereof held directly EUR 4,069.9 million

thereof held via real estate companies EUR 907.4 million

Total Fund properties 123

thereof held via real estate companies

Changes during the period under review

14

Additions 13

Purchases 1) 19

Letting rate (gross estimated rental) 2) 93.30%

Letting rate (net estimated rental) 93.70%

Net outflow of funds EUR – 337.2 million

Distribution on 3 July 2006 EUR 194.0 million

Distribution per unit EUR 2.3000

income tax-free portion held as private assets EUR 1.2616

portion liable to income tax held as private assets EUR 1.0384

Total property return 3) 6.0%

Liquidity return 4) 1.9%

Investment performance 5) p.a. 4.3%

Investment performance 5) since Fund launch 175.8%

Unit value / redemption price EUR 56.97

Issuing price EUR 59.96

Total Expense Ratio (TER) 6) 0.60%

1) Purchases also include additions that occurred during the period under review.

2) Gross estimated rental corresponds to net estimated rental including incidental expenses.

3) Based on the average directly and indirectly held property assets financed by equity

4) Based on the Fund’s average liquid assets

5) Calculated according to the BVI method

6) Total costs as a percentage of average Fund assets within a financial year (further information on page 55)

This Annual Report and the Sales Prospectus available separately are to be distributed to investors in SEB ImmoInvest units until the publication of the next Annual

Report as of 31 March 2007. The Semi-Annual Report must also be included after its publication.

German Securities Code Number: 980 230 ISIN: DE0009802306 Fund launch date: 2 May 1989

Cover image: Frankfurt, Rotfeder-Ring 1–13, headquarters of SEB Asset Management, Rotfeder-Ring 7

Hamburg, ABC-Strasse 19


Annual Report as of 31 March 2006

2 Editorial

3 The SEB ImmoInvest Open-Ended Real Estate Fund

4 Investment Strategy

5 Opportunities and Risks of Open-Ended Real Estate Funds

7 Real Estate Markets

10 Detailed Fund Results

10 Structure of Fund assets

10 Investor structure of SEB ImmoInvest

10 Development of the SEB ImmoInvest Fund

11 Loans and currency hedging

12 Liquid assets

13 Capital gains tax and risk provisions

13 Investment performance

14 Income components of Fund return

16 Overview: Returns and Valuation

17 Real Estate Portfolio

21 Overview: Letting and Remaining Lease Terms

23 Changes to the Portfolio

23 Additions and purchases in Germany

23 Additions and purchases abroad

26 Update on properties under construction

28 Update on construction and modernisation work on portfolio properties

28 Record of purchases

29 Outlook

30 Development of Fund Assets

32 Statement of Assets

36 Regional Distribution of Fund Properties

38 Property Record

46 Overview: Market Values and Rents

52 Money Market Instruments, Securities and Hedging Instruments Portfolio

53 Statement of Income and Expenditure

56 Auditors’ Report

57 Tax Information for Investors

62 Documentation of the bases for taxation in accordance with section 5 (1)

sentence 1 number 1 of the InvStG (German Investment Tax Act)

63 Attestation report on the review of the audit of tax information in accordance with section 5 (1)

sentence 1 number 3 of the Investmentsteuergesetz (InvStG – German Investment Tax Act)

64 Bodies

Illustrations

10 Breakdown of investor structure

17 Geographical distribution of properties

17 Distribution of Fund properties by type of use

18 Economic age distribution of Fund properties

18 Allocation of Fund properties by value class

19 Expiring lease contracts

20 Tenant structure by sector

Annual Report as of 31 March 2006 1


Dear investor,

Financial year 2005/2006 was dominated by the temporary

suspension of share redemptions for three open-ended real

estate funds from competitors. This unsettled many investors

and led to a high number of share redemptions

throughout the sector. While the SEB ImmoInvest Fund

recorded continuous growth in the first three quarters, the

last quarter was in line with the trend in the sector.

One reason for the insecurity of investors is surely the

expectation that open-ended real estate funds cannot be

closed, although this option is still available to all openended

real estate funds as a last resort in the event of a

serious liquidity squeeze. The insecurity can also be attributed

to the insufficiently clear positioning of open-ended

real estate funds in relation to one another and to other

real estate products on the market. It is therefore important

for you to obtain extensive and transparent information

about the risk/return profile of the product you have chosen.

For this reason, we are seizing the opportunity offered

by the current situation to make clear to you, in even more

detail, how our product is positioned in the universe of

open-ended real estate funds.

The group of investors targeted, the strategic orientation

of the fund, risk preference and earnings potential are all

key elements in distinguishing between open-ended real

estate funds. The fund's marketing and investment policy

must be consistently oriented toward these criteria.

2 SEB ImmoInvest

Editorial

Management:

Barbara A. Knoflach, Axel Kraus and

Choy-Soon Chua

SEB ImmoInvest is suitable for investors who want to invest

over the medium or long term and achieve continuous

growth in returns on their investment with reasonable

risk. Our Fund's entire strategic orientation is directed

towards these investor expectations. Because the product

is sold primarily to retail investors, we require that SEB

ImmoInvest Fund offers daily availability. To make this

possible, we maintain a relatively high strategic liquidity

ratio (gross annual average for financial year 2005/2006:

34.2%) and accept the liquidity-related dilution of our

property income. With respect to external financing and

currency hedging, we pursue our security-oriented investment

strategy by remaining below the statutory limits

and giving preference to a conservative management

approach.

This has allowed us in consequence to ensure the competitiveness

of SEB ImmoInvest even in a difficult market environment

and to close out our 17th financial year with an

above-average return of 4.3% p.a.

To continue on this successful path, we will adhere to our

product's income-oriented, conservative investment strategy,

which is designed for continuity.


The SEB ImmoInvest Open-Ended Real Estate Fund

Open-ended real estate funds are enjoying high demand

among private and institutional investors alike, and are

increasingly being used in strategic asset planning for the

purposes of systematic risk diversification. Due to the low

fluctuation of their unit price, their stable distributions

and their low correlation with equities and bonds, openended

real estate funds have become an important component

of asset accumulation and retirement provision.

SEB ImmoInvest is an open-ended real estate fund based

on the absolute return concept; the investment horizon

should therefore be medium- to long-term. The Fund is

suitable for investors who are looking for an incomeoriented,

low-risk investment with tax-free income components.

Its high level of stability means that the Fund

can also be used for investing guarantee assets. With the

approval of the guardianship court, the Fund can be used

to invest ward money.

In accordance with its investment objectives, emphasis

is placed on stable price development and efficient risk

management. Through its fund, portfolio and real estate

management activities, including commercial and technical

building management, the Fund leverages potential value

growth in the areas of property letting, restructuring and

disposals.

SEB ImmoInvest’s investment activities are focused on the

acquisition of commercial real estate. The Company combines

a top-down approach to strategic asset allocation

with bottom-up elements in the selection of properties.

By investing in a range of domestic and international locations

and different types of use, a balanced risk distribution

and above-average performance are achieved. This

approach is based on the SEB ImmoInvest Fund’s investment

philosophy, the cornerstones of which are:

Internationally diversified, market-oriented investment

strategy

Focus on high-quality properties in major cities (A locations)

and regional centres (B locations) with a view to

insulating the Fund from market movements and increasing

stability

Early entry into growth markets

Transparent investment decisions

Intensive, individual tenant support

Active portfolio management and continuous quality

assurance and portfolio maintenance

Since 1995, SEB ImmoInvest has exploited market opportunities

outside Germany. It invests primarily in the member

states of the European Economic Area and North

America. To ensure the marketability of the respective

properties, the volume of each individual investment is

determined on the basis of market liquidity. As part of our

ongoing globalisation effort, markets in the Asia-Pacific

region are being examined as potential additions for risk

diversification purposes.

Key considerations in each investment decision are the capacity

of a property to generate sustainable income, as

well as ensuring a diverse, economically sound tenant

structure. The combination of regional diversification, the

wide range of lease terms and of tenants with excellent

credit ratings and the balanced age distribution of the

properties mean that our property assets have an optimal

risk/return profile.

Annual Report as of 31 March 2006 3


Investment Strategy

SEB ImmoInvest is designed as a traditional absolute

return fund with a global investment approach. Accordingly,

its primary aim is to achieve a stable cash flow on

the basis of a balanced risk/return ratio.

The risk/return profile is continually optimised via the

strategically structured diversification of the portfolio,

particularly with regard to markets, the mix of locations

and tenants, and property sizes.

A key feature of this optimisation is the targeted exploitation

of market cycles. Investments in office markets that

are currently impacted by recession can offer above-average

future growth potential if the respective market forecasts

point to positive growth prospects. At the same time,

established, stable markets with high liquidity are added

to the mix to ensure an appropriate balance between growth

in returns and risk minimisation. Because of the comparatively

low volatility of its returns by international standards,

the German real estate market in particular offers

high stability in this regard, and hence represents a key

component of a diversified portfolio.

Belgium, Brussels,

70–74 Rue de la Loi

Another important opportunity for diversification is the

distribution of the portfolio across various regions. Locations

with strong growth prospects and/or which are

experiencing the first signs of, or are in the throes of, recovery

are identified using macroeconomic development

forecasts (top-down approach). These analyses also form

the basis for decisions on moving into new locations. For

example, we are examining in detail the possibility of entering

new regions on the west and east coasts of the USA,

as well as selected locations in Asia.

With regard to portfolio diversification by type of use, the

focus is primarily on office properties, followed by retail

and logistics.

The main criterion in all purchases is the quality of the

individual property, which is a key factor in ensuring

reliable income and the stability of market values. When

making an investment decision, the letting situation and

future prospects of each property are examined in detail,

as is the property’s contribution to the spread of lease

expiration terms and the tenant mix within the portfolio

as a whole (bottom-up approach).


Opportunities and Risks of Open-Ended Real Estate Funds

As with other capital investments, investments in openended

real estate funds hold both opportunities and risks

for the investor. Real estate investments are long-term and

income-oriented capital investments. Investment performance

depends on a wide variety of economic, tax-related,

legal, real estate-specific and product-dependent factors.

The main opportunities and risks are described below.

General Opportunities and Risks of Real Estate

Investments

Whether held as direct investments or as equity interests,

real estate investments are subject to risks that may have

an effect on the unit value of the fund. The most significant

of these are the following:

In any investment decision, political, and legal economic

risks – including those posed by tax law – should be

noted, along with how transparent and well-developed

the real estate market in question is.

In decisions to invest outside the eurozone, the volatility

of the national currency should be taken into consideration

as well. Exchange rate fluctuations and the

costs of currency hedging have an impact on the property

return. Currency hedging is therefore aligned with

the long-term strategy for the country portfolio and the

individual property.

Any change in the quality of the location may have a

direct effect on the lettability and current letting situation.

If the location increases in attractiveness, lease

contracts can be concluded for higher rents; however, in

the worst possible case, a decrease could mean lasting

high vacancy rates.

Building quality and condition also have a direct impact

on the capacity of a property to generate income.

The condition of the building may require expenditures

for maintenance that exceed budgeted maintenance costs.

Investment costs required in addition may impact the

return over the short term, but may also be necessary

to achieve long-term positive development.

Risks posed by natural disasters (such as earthquakes,

tornados and the like) and by fire and storm damage

are covered worldwide by insurance if this is possible,

reasonable from a financial point of view and objectively

necessary.

Vacancies and expiring leases can mean either earnings

potential or risk. Properties with vacancies can deliberately

be purchased anticyclically to realise later value

increases. Regular observation of the markets invested

in, and the implementation of measures based on this

knowledge with a view to reacting in good time to

market movements are crucial parts of the process.

At the same time, vacancies result in income shortfalls

and increased costs to enhance the attractiveness of the

property for rental.

The creditworthiness of tenants is also a significant risk

component. Poor creditworthiness can lead to high outstandings,

while insolvencies can lead to a total loss of income.

One of the tasks of portfolio management is to aim

to reduce dependencies on individual tenants or sectors.

Specific opportunities and risks of open-ended

real estate funds as a capital investment

Open-ended real estate funds invest money that is callable

in the short term in medium- to long-term real estate portfolios.

German law has taken the problem of maturity

transformation into account with the following regulations:

Every open-ended real estate fund must provide minimum

liquidity of 5% of the fund assets in liquidity

portfolios that are available daily (such as bank deposits).

To cushion high outflows of funds, it is possible to take

out loans amounting to up to 50% of the market values

of the properties, as well as short-term loans of up to

10% of the fund assets. If the costs of external capital

are higher than the property return, this reduces the

fund return (negative leverage effect); if the costs of

external capital are lower than the property return, the

fund return will increase (positive leverage effect).

Annual Report as of 31 March 2006 5


Finally, redemption of units can be suspended for a

maximum period of two years.

In addition, the Fund’s management has established

product-specific approaches tailored to target groups for

managing the risk of liquidity squeezes. The most important

of these are:

Sales information tailored to specific target groups

(Pro)active sales and investor management

Strategic liquidity management focusing on the liquidity

ratio and the leverage ratio of fund assets

Diversification of the real estate portfolio according to

criteria such as size, age, type of use and location to

ensure that marketable properties are available in any

market situation

Creation of reserves for capital gains tax in accordance

with the strategically determined holding period for

properties

Berlin,

Stauffenbergstrasse 26

In principle, the properties owned by an open-ended real

estate fund are the basis for its stability. However, real

estate income and values may fluctuate according to the

economic situation.

The return generated by the fund also follows the development

of cash flow and any appreciation in the value of

the properties. The fund return can develop positively or

negatively on the basis of market developments.

Moreover, external factors (such as the closure of other

market players' funds) may have a substantial impact on

the fund's liquidity situation.

The risks mentioned above are a selection. For a detailed

description of risks, please see the Sales Prospectus.


Real Estate Markets

The world's real estate markets are benefiting from positive

economic development. The positive influence of the

growth trajectory on user demand in real estate markets is

increasing in Europe and finally, in Germany as well. In

2006 the recovery of the markets in Europe and positive

developments in the USA and Asia will continue.

In 2005, Jones Lang LaSalle recorded global direct investments

of approx. USD 475 billion, representing growth of

21% over 2004. The basis for this is the very good overall

performance of this asset class – both at present and over

the medium term – the continued low interest rate level,

and the increased integration and globalisation of real estate

markets with global capital markets. Investor demand

continues to be very strong in 2006, even if we cannot expect

initial yields to fall to the extent that they did in 2005.

Thus the good overall performance expected for the next

financial year will be driven more heavily in particular by

the development of rental prices and the active asset management

of the properties.

Germany – in demand among international

investors

Thanks to their positive fundamentals, German commercial

property markets are on the radar screen of many

international investors. This includes players who are investing

in the German market for the first time. Decreasing

initial yields across the globe are making this market

with its historically low returns increasingly attractive,

particularly in international comparisons. While last year

retail properties and large portfolios represented a significant

portion of international transactions, the focus this

year is on core properties.

France – ongoing growth

French office markets will continue their recovery in 2006,

and the rent levels will develop positively both in Paris

and in regional centres. Investment markets are characterised

by high liquidity. After a significant drop in acquisition

yields last year, very attractive sales options currently

exist for portfolio buildings. A further rise in rental

prices can also be expected in the next few years.

Benelux – regional markets gaining in

importance

In the Dutch office markets, the negative trend could be

seen tapering off last year as user and investor demand

rose. The anticipated recovery of the office market offers

attractive opportunities for investment in a professional

and transparent market. Amsterdam and regional centres

show further promising investment potential.

While regional cities in the Netherlands are becoming increasingly

important, Brussels continues to enjoy a dominant

position in Belgium. Despite stable demand for office

space provided by the EU administration, it is obvious in

Brussels that the heavy increase in available office space

in the city centre and in decentralised office locations is

putting considerable pressure on rent levels. This means

that landlords can only rent modern office space by offering

high incentives.

Northern Europe – Norway and Finland go

global as well

The Nordic countries have positive prospects for growth,

a high level of affluence and – particularly in the case of

Finland and Sweden – are continuing to build on their

comparative advantages as international business locations.

Norway is benefiting significantly from the high oil

prices.

Annual Report as of 31 March 2006 7


The Swedish office market is extremely transparent and

professional. Although the very high level of investment

demand has caused real estate prices to rise significantly,

positive prospects for rental prices over the next few years

are fuelling expectations of overall performance well

above the European average.

Amid positive development in user markets over the

past year, the commercial real estate markets in Norway

have been characterised by increasing globalisation. The

prospects for growth remain positive for the next few

years. The major significance of foreign trade continues

to boost demand for modern logistics properties in good

locations.

The Helsinki metropolitan area is considered one of the

strongest growth regions in the eurozone. Growth well

above the European average is predicted for the next few

years. In addition, Finland is benefiting from its proximity

to the Baltic and Russian growth regions. Beyond this,

there is still a certain pent-up demand for modern, efficient

office space. This creates good preconditions for

successful commercial real estate investments.

USA – rents increasingly dynamic

The office markets are recovering at varying paces from

region to region. We are assuming positive economic

development and rising employment rates in the United

States, and are therefore expecting clear increases in rental

prices. Over the medium term, those metropolitan areas

recording population growth due to their attractiveness

and favourable living conditions, and thus offering good

workforce availability, will benefit the most.

The continued high level of investment demand and

leverage potentials that remain positive despite rising interest

rates are keeping initial yields persistently low, particularly

for well-let office properties in the largest cities.

A wide variety of investment opportunities are, however,

still available in regional locations.

8 SEB ImmoInvest

Asia – wide-ranging opportunities

Asia continues to lead the global economy. Asian markets

are benefiting increasingly from intra-Asian economic ties,

particularly those with growth drivers China and India.

In 2006, prospects for growth are only slightly lower than

those for the past year, while the economic recovery in

South Korea and Japan will continue to pick up.

With the exception of Seoul, where markets have stabilised,

office markets in Asia are currently in a growth phase that

will continue to accelerate in 2006. Stable economic growth

and rising private incomes will cause demand for modern

retail space to rise, so that rents will rise as retail sales grow.

The logistics market in Asia will benefit to an equal degree.

The wide variety in real estate markets is opening up a

broad spectrum of different investment options for investors.

Transparency is increasing as a result of the internationalisation

and professionalisation of the markets,

reducing the risks of cross-border investments.

France, Paris,

La Défense, 32 Place Ronde


Investments in shopping centres and logistics

properties mean diversification

The retail market in Europe will benefit as the economic

upturn stabilises, even if growth in retail sales will only be

moderate. As in previous years, investor demand is high.

Continued development activities will cause a significant

increase in the density of modern shopping centres in

coming years and, over the long term, result in predatory

competition.

The overall performance of shopping centres in past years –

which has been very strong in comparison to office investments

– will stabilise on a somewhat lower level. This is

because competition will increase in this segment as well

due to the substantial rise in the supply of modern retail

properties. Thus no significant rental price increases can

be expected. This will have an effect on the development

of acquisition yields, which will decline at a slower rate as

a result. The market for modern retail warehouse concepts

is becoming more and more important as an investment

option thanks to stable, reasonable returns.

The market for logistics properties in Europe is characterised

by clear changes in structure: in the course of

globalisation and the expansion of the EU, supply chains

will shift, logistics services will see increasing outsourcing

due to cost pressure, and the trend towards restructuring

and internationalisation among logistics providers

will continue.

This will lead to increased demand for large, modern logistics

facilities near locations with good transportation

links, including outside established logistics hubs. The

positive and stabilising effect of logistics properties on a

real estate portfolio will be strengthened even further due

to the increasing transparency and liquidity of this market.


Detailed Fund Results

Structure of Fund assets

The suspension of unit redemptions by three funds impacted

the sector as a whole, with the result that during

the period under review, from 1 April 2005 to 31 March

2006, SEB ImmoInvest also experienced a net outflow of

funds of EUR 337.2 million. Fund assets shrank by 6.3% to

EUR 4,806.6 million. The number of units in circulation

dropped by 5,821,905 units, from 90,189,205 to 84,367,300.

At the same time, directly held property assets rose by

15.5% in the period under review and property assets held

via equity interests increased by 74.8% over the previous

year, due among other things to the purchases made.

Investor structure of SEB ImmoInvest

SEB ImmoInvest is designed as an open-ended real estate

fund with a "core" orientation. It is suitable primarily for

investors who want to make investments over the medium

to long term. The amount of the individual investment

varies according to the available investment volume.

SEB Immobilien-Investment GmbH, the investment company

has, in addition to other distribution channels, its

own investment account management system designed to

ideally meet the needs of its investors. On 31 March 2006,

37.4% of the fund assets were managed in this internal in-

Development of the SEB ImmoInvest Fund

10 SEB ImmoInvest

31 March 2003 31 March 2004 31 March 2005 31 March 2006

EUR million EUR million EUR million EUR million

Properties 2,311.0 3,133.5 3,523.6 4,069.9

Equity interests in real estate companies 115.5 123.8 212.8 371.9

Liquidity portfolio 1,473.9 1,852.9 1,845.3 1,062.5

Other assets 229.4 320.6 533.0 373.1

Less: Liabilities and provisions – 537.3 – 874.5 – 982.8 – 1,070.8

Fund assets 3,592.5 4,556.3 5,131.9 4,806.6

Number of units in circulation (in millions) 63,386,569 80,153,305 90,189,205 84,367,300

Unit value (EUR) 56.67 56.84 56.90 56.97

Distribution per unit (EUR)* 2.30 2.30 2.30 2.30

Date of distribution 20 June 2003 18 June 2004 17 June 2005 3 July 2006

Coupon no. No. 14 / No. 22 No. 15 / No. 23 No. 16 / No. 24 No. 17 / No. 25

* Payable after the end of the financial year

Breakdown of investor structure *

92.8%

Total investments � EUR 1 million

* 100% equals 37.4% of Fund volume

7.2%

Total investments > EUR 1 million

vestment account management system. 7.2% of this

amount is attributable to investors with investments of

greater than EUR 1 million and 92.8% to investors with investments

of less than EUR 1 million. The average assets

per deposit account amounted to EUR 16,553.

The investor structure of the fund assets managed in the

internal investment account management system makes

clear SEB ImmoInvest's primary orientation towards private

clients who use the fund as a component of their retirement

provision and for asset accumulation.


Loans and currency hedging

Loans are used to ensure maximum tax efficiency and to

hedge exchange rate risks. External financing can lead to

both positive and negative leverage effects. To reduce

negative leverage effects that would impact the Fund

result, fixed interest rate periods and the final maturity of

loans must be aligned carefully with the planned holding

period of the properties, letting rate trends and expected

interest rate developments.

The exchange rate risk for investments outside the eurozone

is hedged by foreign currency loans and forward

exchange transactions. At the reporting date of 31 March

Breakdown of loan volumes per currency by fixed interest rate period

6.3% EUR 5 to 10 years

Loan volume EUR 78.0 million

9.7% EUR 2 to 5 years

Loan volume EUR 120.4 million

34.0% EUR less than 1 year

Loan volume EUR 422.4 million

Overview of loans as of 31 March 2006

2006, 99.7% of Fund assets held in foreign currency were

hedged.

The Fund management company employs derivatives on a

targeted basis to reduce the impact of changes in exchange

rates and interest rates. Derivatives are only used to hedge

risks. For the investment in Hungary, the exchange rate risk

was minimised by concluding the leases and purchase

agreements in euros. As a result, no additional exchange

rate hedging is performed for these properties.

For information on the loans and exchange rate risks of

the Fund, please see the overview below.

Currency Loan volume as a % Duration Loan volume as a % Duration Loan volume as a %

in EUR (direct) of the Fund (equity interests)* of the Fund (total) of the Fund

volume in EUR volume in EUR volume

EUR loans (abroad) 490,145,327 9.8 1.7 years 130,588,380 2.6 0.9 years 620,733,707 12.4

USD loans 342,183,793 6.9 2.1 years 273,862,824 5.5 7.2 years 616,046,617 12.4

SEK loans 0 0.0 0.0 years 5,314,470 0.1 0.5 years 5,314,470 0.1

Total 832,329,120 16.7 1.9 years 409,765,674 8.2 5.1 years 1,242,094,794 24.9

* corresponds to size of equity interest

SEK less than 1 year 0.4%

Loan volume EUR 5.3 million

USD less than 1 year 3.4%

Loan volume EUR 41.7 million

USD 1 to 2 years 8.8%

Loan volume EUR 109.8 million

USD 2 to 5 years 15.3%

Loan volume EUR 190.6 million

USD 5 to 10 years 22.1%

Loan volume EUR 273.9 million

Annual Report as of 31 March 2006 11


Overview of exchange rate risks as of 31 March 2006

Currency Open currency items as a % of the Fund volume as a % of the Fund volume

as of reporting date (incl. loans) per currency zone per currency zone

USD (USA) USD 870,816 EUR 719,843 0.1 0.2

SEK (Sweden) SEK 5,286,542 EUR 561,904 2.2 2.2

Total EUR 1,281,747 0.2 0.3

Assets in USD 1)

1.3% Bank deposits

USD 12.3 million

77.3%

Assets in SEK 1)

58.0%

Property (directly held)

USD 752.7 million

0.4% Bank deposits

SEK 0.8 million

Other assets

SEK 138.6 million

12 SEB ImmoInvest

Other assets 5.8%

USD 56.5 million

Equity interest 15.6%

USD 151.7 million

Equity interests

SEK 99.3 million

1) Equity interests have been presented in consolidated form.

* Active currency hedging

** Passive currency hedging

Liquid assets

41.6%

Gross liquidity amounted to around EUR 1,063 million as

of 31 March 2006. Accordingly, the gross liquidity ratio

dropped by 13.9 percentage points to 22.1% over the past

twelve months. At the same time, the property ratio rose

by 19.6 percentage points to 92.4% (including the equity

interests and external financing). During the financial

year, a total liquidity return of 1.9% was realised.

Hedging transactions USD 1)

42.5% Loans*

USD 414.0 million

5.1% Other liabilities**

USD 49.6 million

1.4% Provisions**

USD 13.6 million

Hedging transactions SEK 1)

2.2% Unhedged

SEK 5.3 million

Unhedged 0.1%

USD 0.9 million

Forward exchange

transactions*

USD 495.2 million

50.9%

Currency transactions* 97.8%

SEK 233.4 million

In our liquidity management we pursue the absolute return

concept. The liquidity portfolio is composed of conservative

investments with stable values. All securities

and money market instruments have a minimum of an A

rating from an internationally recognised rating agency.


The liquidity portfolio comprises bank deposits in the

amount of EUR 617.0 million with a duration of 0.1 years,

money market instruments in the amount of EUR 231.4

million with a duration of 0.1 years, and fixed-income

securities in the amount of EUR 214.1 million with a duration

of 6.0 years. The interest rate risk has been hedged

extensively, putting the duration of fixed-income securities

at 0.6 years after hedging. As of 31 March 2006 the

liquidity portfolio had an overall duration of 1.3 years

prior to hedging; after accounting for hedging transactions

the duration was 0.2 years.

Capital gains tax and risk provisions

When real estate and real estate companies taking the

legal form of a partnership outside Germany are sold,

gains on disposal may be subject to tax (capital gains tax).

Due to potential changes in the basis for tax assessment

and the market conditions in the respective countries, the

amount and timing of such taxes can only be estimated at

present. Provisions have therefore been set up on the basis

of country-specific tax rates as a precautionary measure

for future capital gains tax charges on Fund assets. In the

process, both the long-term strategy for the respective

country portfolio and the individual property or real

estate company are taken into account. Investments and

divestments in the respective country portfolios are also

co-ordinated with one another so that disposals can be

made in a tax-optimised manner.

For this reason we believe an average capital gains tax

rate equalling 35% of the potentially applicable tax burden

is reasonable. For more detailed information on the

amount of capital gains tax provisions for country port-

folios, please see the Fund return table on page 16 and

the Disclosures on the Statement of Assets on page 35.

Investment performance

The Fund’s investment performance for the last twelve

months is composed of the income and return generated

by the properties and by the Fund’s liquid assets.

The unit price has continued to develop positively over

the past twelve months. An investment performance of

EUR 2.37 per unit or 4.3% p.a. was realised after adjustment

was made for the distribution of 17 June 2005 in the

amount of EUR 2.30 per unit. The positive development

of past years thus continued, once again ensuring SEB

ImmoInvest a leading position among its competitors.

Investment performance

Unit value as of 31 March 2006 EUR 56.97

Plus distribution on 17 June 2005 EUR 2.30

Minus unit value on 1 April 2005 EUR – 56.90

Investment performance EUR 2.37

Return according to the BVI method *

Return Return

in % in % p.a.

1 year 4.3

3 years 13.7 4.4

5 years 26.8 4.9

10 years 66.3 5.2

15 years 140.5 6.0

Since the launch of the Fund

on 2 May 1989

175.8 6.2

Note: Calculated according to the BVI method (no front-end load; distributions

reinvested immediately). Past performance is no indication of future

performance.

* This table was not included in the audit or the Auditors’ Report.

Annual Report as of 31 March 2006 13


Income components of Fund return in % *

Properties Germany Abroad Abroad Abroad Total Germany Abroad Abroad Abroad Total

Direct Equity total Direct Equity total

acquisitions interests acquisitions interests

Gross income 1) 6.5 7.5 6.6 7.4 7.0 5.7 7.8 8.9 8.0 7.0

Management costs 1) – 0.9 – 2.0 – 0.4 – 1.8 – 1.4 – 1.1 – 1.9 – 1.5 – 1.8 – 1.5

Net income 1) 5.6 5.5 6.2 5.6 5.6 4.6 5.9 7.4 6.2 5.5

Changes in value 1) – 0.5 0.4 4.3 0.9 0.2 – 1.0 2.3 2.4 2.3 0.9

Foreign income taxes 1) – – 0.5 – 0.5 – 0.5 – 0.2 0.0 – 0.6 – 1.1 – 0.7 – 0.4

Foreign deferred taxes 1) – 0.0 0.0 0.0 0.0 0.0 – 0.5 – 0.5 – 0.5 – 0.3

Income before borrowing costs 1) 5.1 5.4 10.0 6.0 5.6 3.6 7.1 8.2 7.3 5.7

Income after borrowing costs 2) 5.1 6.3 14.1 7.4 6.0 3.6 9.0 11.2 9.5 6.1

Exchange rate differences 2) – – 0.1 0.4 0.0 0.0 0.0 – 0.3 – 0.4 – 0.3 – 0.1

Total income in Fund currency 2) 5) 5.1 6.2 14.5 7.4 6.0 3.6 8.7 10.8 9.2 6.0

Liquidity 3) 6) 2.8 1.9

Total Fund income before Fund costs 4) 4.7 4.6

Total Fund income after

Fund costs (BVI method) 4.3 4.3

1) Based on average property assets

2) Based on average property assets financed by equity

3) Based on average liquid assets

4) Based on average Fund assets

5) Generated with an average share of Fund assets financed by equity and invested in property during financial year 2004 / 2005 of 60.08%, and with an average

share of Fund assets financed by equity and invested in property during financial year 2005/2006 of 65.85%

6) Generated with an average liquidity ratio during financial year 2004/2005 of 39.92%, and with an average liquidity ratio of 34.15% of the Fund assets during

financial year 2005/2006

* This table was not included in the audit or the Auditors’ Report.

In the twelve-month reporting period, the properties generated

a gross rental return of 7.0%, matching the result

for the previous year. This return was driven primarily

by direct investments and foreign equity interests. Particularly

in the USA, gross rental returns improved over the

past twelve months from 9.3% to 9.6%, thanks to rental

agreements concluded against a backdrop of positive

market developments. Purchases also boosted the gross

rental return from foreign equity interests, which improved

over the past twelve months from 6.6% to 8.9%.

The burgeoning recovery of the real estate markets in

France, the Netherlands and Spain brought about a slight

rise in gross rental returns in those countries. In Germany

14 SEB ImmoInvest

Financial year from 1 Apr. 2004 to 31 Mar. 2005 Financial year from 1 Apr. 2005 to 31 Mar. 2006

and Belgium, it would seem that the negative trend is at

an end, although this continued to impact gross rental

returns during the financial year in the form of vacancies

and renewals at current market rates.

Management costs reduced gross rental returns at the

portfolio level by – 1.5% during the period under review.

In this context, the comparatively high management

costs of – 5.0% in the USA are standard for the rental

market there, with its substantial contributions towards

fit-out costs. Because rent accounts for a higher portion

of expenses, more costs are borne in return by the owner.


Foreign income taxes and provisions for deferred taxes

reduced the net rental return by 0.7 percentage points in

the period under review. Strategic external financing and

forward exchange transactions used to hedge the property

assets increased the total property return so that income

from properties contributes 6.1% of the Fund return

after borrowing costs. External financing is currently

used exclusively for foreign properties. The average

external debt ratio varies across country portfolios from

19.7% (Italy) up to 59.0% (USA).

The Changes in value item includes both changes in

value according to the expert opinions and other changes

in value, such as provisions for planned maintenance

work. During the period under review, the return from

changes in value was a positive 0.9 percentage points.

Changes in value according to the expert opinions made

a negative contribution of around EUR – 3.3 million for

the entire portfolio, or – 0.1%.

In several countries, positive changes in value according

to expert opinions were recorded. This results first and

foremost from positive cyclical developments on foreign

real estate markets. In the USA the distinctly positive

change in value is due primarily to two aspects: the

strong investment demand for well-leased core properties

is increasing the return of the latter. At the same time,

the extremely positive trend on the letting markets in

New York and San Francisco has caused the market value

of the properties to rise. In France as well, high demand was

observable on the investment markets, which positively affected

the return generated by the properties. Moreover,

rental successes in the Chatillon and Place Ronde properties

in La Défense leveraged the potential for increased

returns. The increased returns realised in the Netherlands

were also driven by the positive development.

Germany, on the other hand, continued to see substantial

falls in value totalling around EUR –35.4 million. While some

properties in Germany posted increases in value according

to expert opinions in the amount of EUR 0.96 million, in

the case of 55 properties falls in value amounted to EUR

– 36.4 million. In the German submarkets rents did not

bottom out until 2005/ 2006, leading to renewals at lower

rents. While this also has an impact on the value of the

property, it also affords the opportunity of leveraging under-rented

potential at a later date. The office rental market

in Belgium is also affected by the ongoing tight market

conditions. The increased construction activity of recent

years has made letting possible only in the case of large

incentives for tenants and correspondingly low rent levels,

particularly in Brussels. With persistent vacancies and

successful lease extensions at current market levels, this

market development in Belgium led to drops in value of

roughly EUR – 4.97 million or – 6.4% of the Belgian subportfolio.

However, the negative contribution to the property

return resulting from this decrease in value is relatively

small because the Belgian subportfolio only makes

up a small proportion of total average property assets.

Other negative changes in value resulted particularly

from the provisions that were recognised for pending

alterations in Vienna, Rennweg and renovation measures

in the USA. Detailed information on these measures can

be found under “Update on construction and modernisation

work on portfolio properties”.

Other positive changes in value were achieved in Germany

in particular. They are the result of the successful

completion of construction and modernisation work. The

completion of the Maritim Hotel in Berlin in particular

made a clearly positive contribution.

Annual Report as of 31 March 2006 15


Overview: Returns and Valuation

Key return figures (in % of average Fund assets) 1) *

I. Properties

Gross income 2) 5.7 6.8 6.9 6.2 9.8 9.1 9.6 5.3 6.7 8.9 8.0 7.0

Management costs 2) – 1.1 – 1.6 – 0.3 – 0.6 – 0.9 – 1.7 – 5.0 – 0.8 – 1.5 – 1.5 – 1.8 – 1.5

Net income 2) 4.6 5.2 6.6 5.6 8.9 7.4 4.6 4.5 5.2 7.4 6.2 5.5

Changes in value 2) – 1.0 – 6.4 1.6 1.8 1.5 3.1 6.2 – 9.6 0.7 2.4 2.3 0.9

Foreign income taxes 2) 0.0 – 0.4 – 0.7 – 0.3 – 2.3 – 0.5 – 0.3 – 0.4 – 0.3 – 1.1 – 0.7 – 0.4

Foreign deferred taxes 2) 0.0 0.0 – 0.2 – 0.5 0.0 – 0.2 – 1.1 0.3 – 0.2 – 0.5 – 0.5 – 0.3

Income before borrowing costs 2) 3.6 – 1.6 7.3 6.6 8.1 9.8 9.4 – 5.2 5.4 8.2 7.3 5.7

Income after borrowing costs 3) 3.6 – 3.6 10.8 7.2 11.2 15.9 14.7 – 7.5 5.6 11.2 9.5 6.1

Exchange rate differences 3) 4) 0.0 0.0 0.0 0.0 0.0 0.0 – 1.4 0.0 – 0.1 – 0.4 – 0.3 – 0.1

Total income in Fund currency 3) 5) 3.6 – 3.6 10.8 7.2 11.2 15.9 13.3 – 7.5 5.5 10.8 9.2 6.0

II. Liquidity 6) 7) 1.9

III. Total Fund income before Fund costs 8) 4.6

Total Fund income after Fund costs (BVI method) 4.3

Net asset information (weighted average figures in EUR thousand) 1) *

Directly held properties 2,028,696 77,540 509,743 514,612 162,312 95,823 577,101 72,307 4,038,134 0 2,009,438 4,038,134

Properties held via equity interests 0 0 0 0 0 0 0 0 0 563,648 563,648 563,648

Total properties 2,028,696 77,540 509,743 514,612 162,312 95,823 577,101 72,307 4,038,134 563,648 2,573,086 4,601,782

of which property assets financed by equity 2,028,696 55,512 269,193 413,392 97,123 50,557 236,440 56,562 3,207,475 297,003 1,475,782 3,504,478

Loan volume 0 22,028 240,550 101,220 65,189 45,266 340,661 15,745 830,659 266,645 1,097,304 1,097,304

Liquid assets 1,754,452 5,220 1,509 11,853 399 400 3,721 317 1,777,871 40,323 63,742 1,818,194

Fund volume 3,783,148 60,732 270,702 425,245 97,522 50,957 240,161 56,879 4,985,346 337,326 1,539,524 5,322,672

Information on changes in value (at the reporting date in the Fund currency in EUR thousand)

Portfolio market values (expert opinions) 9) 1,939,706 75,155 545,814 460,300 241,370 107,200 622,205 78,160 4,069,910 907,435 3,037,639 4,977,345

Portfolio rental valuations (expert opinions) 10) * 125,494 5,694 37,488 31,225 16,501 8,187 75,370 5,142 305,101 81,758 261,365 386,859

Positive changes in value acc. to expert opinions 11) 960 60 7,080 160 1,140 0 34,884 0 44,284 220 43,544 44,504

Other positive changes in value 12) 19,879 0 1,926 9,738 1,335 3,000 4,400 0 40,278 14,093 34,492 54,371

Negative changes in value acc. to expert opinions 11) – 36,365 – 5,030 – 1,050 – 820 0 0 – 3,224 – 840 – 47,329 – 523 – 11,487 – 47,852

Other negative changes in value 12) – 4,541 0 0 0 0 0 – 92 – 6,090 – 10,723 – 262 – 6,444 – 10,985

Addition – capital gains tax 0 0 – 1,024 – 2,298 0 – 202 – 6,213 196 – 9,541 – 3,059 – 12,600 – 12,600

Total changes in value acc. to expert opinions 11) – 35,405 – 4,970 6,030 – 660 1,140 0 31,660 – 840 – 3,045 – 303 32,057 – 3,348

Total other changes in value 12) 15,338 0 902 7,440 1,335 2,798 – 1,905 – 5,894 20,014 10,772 15,448 30,786

Total changes in value – 20,067 – 4,970 6,932 6,780 2,475 2,798 29,755 – 6,734 16,969 10,469 47,505 27,438

1) The weighted average figures in the financial year are calculated using 13 month-end values

(31 March 2005 – 31 March 2006).

2) Based on the Fund’s average property assets in the period under review

3) Based on the Fund’s average property assets financed by equity in the period under review

4) "Exchange rate differences" include both changes in exchange rates and the costs of hedging

transactions for the period under review.

5) Total income in Fund currency was generated with an average share of Fund assets invested

in property and financed by equity for the period of 65.85%.

6) Based on the Fund’s average liquid assets during the period under review

7) The average share of Fund assets invested in the liquidity portfolio for the period was 34.15%.

16 SEB ImmoInvest

Germany

Germany

Germany

Belgium

Belgium

Belgium

France

France

France

Italy

Italy

Italy

Netherlands

Netherlands

Netherlands

Spain

Spain

Spain

USA

USA

USA

Rest of World

Rest of World

Rest of World

Total direct

investments

Total direct

investments

Total direct

investments

Total equity

interests

Total equity

interests

Total equity

interests

8) Based on the average Fund assets during the period under review

9) Properties under construction are included in the amount of their construction costs. Wherever

portfolio properties were reclassified as properties under construction, they are included at

market value; construction costs are included in the form of provisions for construction costs.

10) Portfolio rental valuations (expert opinions) refer to the gross profits from letting determined

by experts. Gross profits in this case equal the net basic rent estimated by the experts as

achievable over the long term.

11) Total changes in market values determined by experts

12) Other changes in value comprise changes in carrying amounts such as acquisition costs and

purchase price settlements capitalised subsequent to initial recognition.

* This table or line was not included in the audit or the Auditors’ Report.

Total abroad

Total abroad

Total abroad

Total

Total

Total


Real Estate Portfolio

During the period under review, a total of 19 properties

were acquired, 13 of which have already been added to

the Fund. The additions comprise six direct investments

(three in Germany, two in the Netherlands and one in the

USA) and seven properties acquired via investment companies

(of which five properties are held via three investment

companies in the USA and one equity interest each

in Italy and France). The investments made further

strengthened the long-term capacity of the portfolio to

generate income.

As of 31 March 2006, the portfolio comprised 123 properties

at over 60 locations in 11 countries. Five Fund properties

are currently under construction. The property assets

accounted for by the directly and indirectly held properties

(basis: market value) increased by EUR 941.7 million

to EUR 4,977.3 million during the financial year. 82% of

the property assets are held via direct investments and the

remaining portion via real estate companies.

Geographical distribution of the properties

Rhine-Main

Rhine-Ruhr

Berlin

Hamburg

Munich

Rest of Germany

USA

France

Italy

Netherlands

Belgium

Spain

Hungary

Rest of World (L, S)

11.5%

9.4%

6.5%

4.1%

2.1%

5.8%

5.0%

3.4%

2.2%

1.1%

1.4%

14.2%

12.1%

Basis: Market value (incl. properties held via equity

interests, but not properties undergoing

construction/renovation)

21.2%

As of 31 March 2006, the share of foreign real estate in the

Fund amounted to 60.6% of the market value of all properties

(not including properties under construction; as of

31 March 2005: 56.4%). The geographical focus of the portfolio

abroad is the USA, with 21.2% of property assets, followed

by France with 14.2% and Italy with 12.1%. These

three countries have very transparent and growth-intensive

real estate markets that ensure the portfolio's long-term

capacity to generate income and increase in value.

In terms of types of use, office buildings are the Fund’s

primary focus, accounting for 74.1% (estimated net rental)

or 69.9% (rental space) of the portfolio. The transfer of the

Maritim Congress Hotel resulted in a significant diversification

by type of use: whereas hotels represented only

0.8% of the estimated net rental for the year as of 31 March

2005, this figure had risen to 3.4% at the reporting date.

Distribution of Fund properties by type of use

Office

Retail / catering

Car park

Industry

(Warehousing, halls)

Hotel

Leisure

Miscellaneous

11.0%

12.2%

3.9%

0.0%

3.9%

11.5%

3.4%

3.2%

0.9%

1.3%

2.8%

1.9%

Basis: By estimated net rental per year

By rental space

(incl. properties held via equity interests, but not

properties undergoing construction/renovation)

74.1%

69.9%

Annual Report as of 31 March 2006 17


The economic age distribution of the properties is aimed

at achieving stability and sustainability: 33.1% of the

properties in the portfolio (basis: market values) have

been constructed or comprehensively renovated in the

past five years. A total of 53.5% of the real estate portfolio

is less than ten years old.

To ensure marketability, the volume of individual property

investments is determined on the basis of market liquidity.

The Fund’s portfolio has a broad, balanced distribution by

value class. The largest category (55.1%) consists of properties

with a market value of between EUR 25 million and

EUR 100 million. 55 properties have a market value of less

than EUR 25 million, while only the two properties in

New York have market values of over EUR 200 million.

Taken together, the five largest properties in terms of

market value account for 20.5% of total property assets.

The two largest properties in the portfolio are located in

Manhattan Midtown (New York), an extremely trans-

Economic age distribution of Fund properties

25.2%

7.0%

14.3%

more than 20 years

(up to 1985)

12 to 20 years

(1986/1990)

10 to 15 years

(1991/1995)

18 SEB ImmoInvest

up to 5 years

(since 2001)

33.1%

5 to 10 years 20.4%

(1996/2000)

Basis: Market value (incl. properties held via equity interests, but not properties

undergoing construction/renovation)

parent and liquid real estate market with above-average

demand for office space. The buildings are let to 57 highly

creditworthy tenants, thus ensuring sufficient diversification

in terms of lease contracts. One tenant of these properties,

the Hartford Fire Insurance Company, is the subsidiary

of a well-known, highly solvent US financial services provider,

and is one of the five largest tenants in our portfolio.

Top 5 properties Top 5 tenants

New York, 2 Park Avenue ENI S.p.A.

New York, 1 Park Avenue Maritim Hotelgesellschaft mbH

Berlin, Stauffenbergstrasse 26 NBC Universal, Inc.

San Francisco, 225 Bush Street Hartford Fire Insurance Group

Rome, Via Laurentina 449 PricewaterhouseCoopers

The property in Berlin, Stauffenbergstrasse 26, is let to

Maritim Hotelgesellschaft mbH until 2030: with 44 hotels

and around 12,000 rooms, Maritim is one of the leading

German hotel chains, and enjoys a leading position in the

area of meeting and conference facilities in particular.

Allocation of Fund properties by value class

10.0%

13.6%

over EUR 200 million

(2 properties)

EUR 150 � 200 million

(4 properties)

7.9% EUR 100 � 150 million

(3 properties)

30.7% EUR 50 � 100 million

(21 properties)

up to EUR 10 million

(25 properties)

Basis: Market value (incl. properties held via equity interests, but not properties

undergoing construction/renovation)

3.3%

EUR 10 � 25 million 10.1%

(30 properties)

EUR 25 � 50 million 24.4%

(33 properties)


The Via Laurentina 449 property in Rome is located in

an established office location and is used by Agip, a subsidiary

of ENI S.p.a., as its headquarters. ENI S.p.A. is a

successful Italian energy company with around 70,000

employees in 70 countries, and also numbers among our

five largest tenants. Due to the structure of the office park,

the property can easily be subdivided into individual

units with attractive rental prospects.

NBC Universal, Inc., one of the leading global media

and entertainment companies, is another of the Fund’s

five largest tenants. NBC Universal, Inc. was formed in

2004 through the merger of NBC and Vivendi Universal.

General Electric holds 80% of the company, while Vivendi

Universal holds the remaining 20%. The company rents

our property in San Francisco.

The global auditing firm PricewaterhouseCoopers is a

further key tenant in our portfolio, contributing 1.9% of

annual estimated net rental. The company rents space in a

building in Frankfurt’s Mertonviertel, as well as in our

property in Budapest.

USA, New York, 2 Park Avenue

Rental

Despite the start of a recovery on the real estate markets,

an imbalance between the supply of space and user

demand persisted during the financial year.

Expiring lease contracts

April – December 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

from 2016 onwards

without specified maturity

0.6%

9.4%

7.0%

5.2%

10.9%

5.3%

4.6%

4.7%

8.2%

12.1%

15.0%

Basis: Estimated net rental for the year (incl. properties

held via equity interests, but not properties

undergoing construction/renovation)

This also had an effect on the letting rate in the portfolio.

The letting rate averaged 93.8% of the estimated net position,

or 93.3% of the gross net position (including incidental

expenses). As of the reporting date the letting rate

stood at 93.7% of the estimated net rental, or 93.3% of the

estimated gross rental.

In the Belgian subportfolio, vacancies rose once again. To

enhance the competitiveness of the properties at this location,

further modernisation projects are currently being

examined; active letting negotiations are also underway.

Because of the Belgian subportfolio's small (1.8%) share of

the total estimated net rental, however, the effects on the

Fund result are minor. In Germany, on the other hand, we

succeeded in increasing the letting rate slightly.

17.0%

Annual Report as of 31 March 2006 19


In the past twelve months, new lets totalling 174,914 m 2

played a particularly large role in compensating for

expiring lease contracts.

The stability of real estate values and of cash flows depends

in particular on the lease structure. Currently about

half of the leases have a term of more than five years. The

terms and staggered durations of the leases are very important

in preventing ongoing income risks. At the same

time, however, expiring leases also offer the potential to

increase rental income on the back of positive market

developments.

Tenant structure by sector

by rental space

Consumer goods industry and retail

Utilities and telecommunications companies

Technology and software

Management consulting, legal and tax advisory

Media and entertainment

Insurance companies

Banks and financial service providers

Construction companies

Hotels and catering

Public authorities, associations and educational institutions

Automotive and transport

Mechanical engineering, raw material extraction and processing

Chemical and pharmaceutical industry

Other sectors

by estimated net rental per year

Consumer goods industry and retail

Management consulting, legal and tax advisory

Technology and software

Media and entertainment

Insurance companies

Utilities and telecommunications companies

Banks and financial service providers

Construction companies

Hotels and catering

Public authorities, associations and educational institutions

Mechanical engineering, raw material extraction and processing

Automotive and transport

Chemical and pharmaceutical industry

Other sectors

20 SEB ImmoInvest

Another component of diversification at tenant level is

achieving a spread of tenants across a range of industries

to reduce dependency on specific economic segments.

For more information on the portfolio structure, please

see “Overview: Returns and Valuation” and “Overview:

Letting and Remaining Lease Terms”: on pages 16 and 21

of this Report.

9.0% (64)

8.3% (53)

7.9% (67)

7.0% (45)

6.6% (36)

6.1% (88)

5.7% (20)

5.1% (64)

5.1% (41)

5.0% (24)

5.0% (10)

3.4% (11)

8.9% (227)

9.7% (67)

8.2% (53)

8.1% (45)

8.0% (36)

7.9% (64)

7.3% (88)

5.9% (20)

5.5% (64)

5.5% (41)

4.5% (10)

3.9% (24)

3.5% (11)

8.2% (227)

13.8% (386)

16.9% (386)

In brackets: number of tenants (incl. properties held via equity interests, but

not properties undergoing construction/renovation)


Overview: Letting and Remaining Lease Terms

Letting information (in % of estimated net rental for the year) 1) *

Office 21.6 1.5 8.7 5.9 0.6 3.5 0.0 16.0 57.8 16.3 52.5 74.1

Retail / catering 3.8 0.0 0.2 1.4 0.0 0.8 1.8 0.9 8.9 2.1 7.2 11.0

Hotel 3.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.4 0.0 0.0 3.4

Industry (Warehousing, halls) 1.9 0.0 0.5 0.6 0.0 0.0 0.0 0.1 3.1 0.8 2.0 3.9

Residential 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Leisure 0.4 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.7 0.2 0.5 0.9

Car park 1.8 0.2 0.4 0.6 0.1 0.4 0.0 0.1 3.6 0.3 2.1 3.9

Miscellaneous 1.5 0.1 0.5 0.2 0.0 0.0 0.0 0.1 2.4 0.4 1.3 2.8

% of total annual rental income 34.4 1.8 10.3 8.7 0.7 4.7 2.1 17.2 79.9 20.1 65.6 100.0

Vacancy rate (in % of estimated net rental for the year) 1) *

Office 2.0 0.7 0.1 0.0 0.1 0.0 0.0 0.9 3.8 1.4 3.2 5.2

Retail / catering 0.3 0.0 0.0 0.0 0.0 0.1 0.0 0.2 0.6 0.0 0.3 0.6

Hotel 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Industry (Warehousing, halls) 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.2

Residential 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Car park 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.1 0.3

Miscellaneous 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

% of total vacancy rate 2.7 0.8 0.1 0.0 0.1 0.1 0.0 1.1 4.9 1.4 3.6 6.3

Letting rate on reporting date as % of 92.2 57.1 99.2 99.5 83.3 98.9 98.5 93.8 93.9 92.8 94.5 93.7

est. net rental for year and country 1)

Letting rate on reporting date as % of 91.9 51.9 99.2 99.5 84.5 98.7 98.5 92.3 93.4 93.0 94.0 93.3

est. gross rental for year and country 2)

Remaining lease terms (in % of estimated net rental for the year) 1) *

Germany

Belgium

France

Italy

without specified maturity 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.4 0.2 0.4 0.6

2006 2.3 0.5 2.4 0.5 0.0 1.4 0.2 0.8 8.1 1.3 7.1 9.4

2007 3.2 0.3 0.3 0.3 0.0 0.2 0.2 0.4 4.9 2.1 3.8 7.0

2008 1.5 0.0 0.0 0.0 0.0 0.2 0.5 1.7 3.9 1.3 3.7 5.2

2009 1.8 0.0 0.2 3.9 0.4 0.8 0.1 1.2 8.4 2.5 9.1 10.9

2010 6.6 0.1 0.7 1.0 0.0 0.4 0.2 4.9 13.9 3.1 10.4 17.0

2011 3.1 0.0 0.4 0.3 0.1 0.0 0.1 2.5 6.5 1.7 5.1 8.2

2012 1.3 0.0 1.1 0.1 0.0 0.7 0.1 0.6 3.9 1.4 4.0 5.3

2013 3.3 0.0 3.6 1.7 0.0 0.1 0.2 1.1 10.0 2.1 8.8 12.1

2014 1.3 0.0 2.2 0.0 0.0 0.3 0.0 0.3 4.1 0.5 3.3 4.6

2015 1.0 0.0 0.1 0.0 0.1 0.2 0.0 1.1 2.5 2.2 3.7 4.7

2016 + 8.4 0.1 0.0 1.4 0.0 0.8 0.6 2.3 13.6 1.4 6.6 15.0

% of estimated net rental for the year 34.0 1.0 11.0 9.2 0.6 5.1 2.2 17.1 80.2 19.8 66.0 100.0

1) Based on the ratio between the estimated net rental for the year from directly or

indirectly held properties, and the total estimated net rental for the Fund. The estimated

rental for the equity interests was adjusted in line with the interest held.

* This table was not included in the audit or the Auditors’ Report.

Germany

Germany

Belgium

Belgium

France

France

Italy

Italy

Luxemburg

Luxemburg

Luxemburg

Netherlands

Netherlands

Netherlands

Spain

Spain

Spain

USA

USA

USA

Total direct

investments

Total direct

investments

Total direct

investments

Equity interests

(abroad)

Equity interests

(abroad)

Equity interests

(abroad)

2) The estimated gross rental comprises net rental (“basic rent”) along with incidental

expenses to be paid by the tenant, e.g. heating, power, cleaning and insurance,

which are represented by the advance payments for incidental expenses.

Total abroad

Total abroad

Total abroad

Total

Total

Total

Annual Report as of 31 March 2006 21


Letting situation of individual properties

As part of the report on the letting situation, the following is a detailed overview of 16 properties with a vacancy rate of

over 33% of the estimated (gross) rental.

Property Vacancy rate Vacancy rate

at property at Fund

level in % level in %

Unterschleissheim / Munich, Edisonstrasse 1

Demand for office and warehouse space across the entire Munich region is extremely low. However, a turnaround is

expected in the foreseeable future. Letting activities are being supported by a model office. Negotiations are currently

being conducted with a prospective tenant.

100.00 0.17

Brussels, 139–141 Rue Royale

Demand for office space in the Brussels market is restrained. On the other hand, the demand for projects has risen to

the point that various modernisation options are being examined.

100.00 0.26

Brussels, 41 Avenue des Arts

To improve the competitive positioning of the property, it has been extensively modernised in line with the needs of its

target group. Efforts to find new tenants are being driven forward.

93.71 0.19

Cologne, Oskar-Jäger-Strasse 50

As of 1 April 2005, a renewal lease was concluded with an existing tenant. Measures to enhance the attractiveness of

the property are currently being implemented and further measures are planned. Further positive momentum is

expected from the creation of a marketing suite.

91.46 0.41

Zaventem / Brussels, 9 Belgicastraat

Intensive letting activities are flanked by a newly completed show area illustrating various standards of fixtures

and fittings. The letting process is proving laborious because of high levels of vacancies and numerous new

completions.

84.17 0.20

Frankfurt, Stiftstrasse 30

The property’s good city location means it is able to compete even on the difficult Frankfurt market. Marketing

activities are in full swing; the conclusion of a lease contract set to start after the reporting date has lowered the

rate of 0.22% as at 31 March 2006 to 0.17% (based on the total estimated rental income of the Fund

in each case).

70.31 0.22

Magdeburg, Otto-von-Guericke-Strasse 86 a / Leiterstrasse 12

Intensive negotiations for new lets are in progress. Two new lease contracts have been concluded since 30 September

2005; however, these will only affect the vacancy rate positively in the future.

62.94 0.08

Essen, Alfredstrasse 57–65

The creation of a model office, direct mailing and a change of letting agent are optimising market contact. The demand

for high-quality rental space in excess of 1,000 m

54.46 0.12

2 is on the rise.

Essen, Gladbecker Strasse 431–435 / 425–427

A shift in the marketing concept garnered three new tenants; as a result, 490 m

51.65 / 39.78 0.11 / 0.06

2 of office space and 860 m2 of

industrial space were let; however, one lease contract only takes effect in April 2006.

Wayne, 1255–1285 Drummers Lane

We expect the letting situation for the King of Prussia market to recover. Negotiations are currently being conducted

with prospective tenants.

47.23 0.47

Viersen, Kränkelsweg 2–16 45.07 0.08

Demand for office and warehouse space continues to be restrained. Focused marketing activities have been expanded.

Frankfurt, Rotfeder-Ring 1–13

Despite a vacancy rate of 44%, the property’s above-average rental success sets it apart from the rest of the extremely

difficult Frankfurt office market. As from 1 June 2006, new lets will considerably reduce vacancies.

44.25 0.50

Idar-Oberstein, Nahe Center 1–10

Despite the central location, the economic conditions for restaurant space are proving very difficult at this location.

We are currently examining repurposing the restaurant space.

40.15 0.02

Düsseldorf, Kruppstrasse 108

Despite the generally difficult letting situation in Düsseldorf, we are expecting that the rental space that became vacant

in February 2006 will be let in the near future. Marketing efforts are being supported by an attractively designed

model office.

38.88 0.12

Diegem / Brussels, 3 Kennedylaan

The vacancy rate in non-central office locations in Brussels is extremely high. The modernisation of the property with the

aim of improving the letting situation is being examined intensively, along with other alternatives.

33.54 0.11

22 SEB ImmoInvest


Changes to the Portfolio

A total of 19 purchases were made in financial year

2005/2006, of which 13 have already been added to the

Fund. In the last Semi-Annual Report (as of 30 September

2005), we provided extensive information on additions

and purchases in the first six months of the year, namely:

Kleine Kurstrasse 15 and Stauffenbergstrasse 26 in Berlin,

Prof. W. H. Keesomlaan 4 in Amstelveen/Amsterdam,

225 Bush Street in San Francisco and 27/27ter Avenue du

General Leclerc/2–4 Rue Herault in Boulogne.

Additions and purchases in Germany

Hamburg, Gorch-Fock-Wall 3–7

In November 2005, a listed office building was acquired in

the immediate vicinity of Hamburg’s Gänsemarkt square.

The purchase price, including transaction costs, amounted

to approximately EUR 34.3 million. The vendor was a

property management company in which Quantum Immobilien

AG and Bankhaus Wölbern hold equity interests.

The rental income for the property, which has total office

and warehouse space of around 13,512 m2 and 24 outdoor

parking spaces, is secured in the long term through two

companies with excellent credit ratings as well as through

a rental guarantee. Some 71% of the space has been let to

Deutsche Telekom AG subsidiary Generalmietgesellschaft

mbH until the end of September 2015 and 18% to Bankhaus

Hesse Newman & Co. AG until the end of May 2016.

Income from the remaining 1,480 m2 of warehouse space

is secured for seven years by the vendor.

The property, which was added to the Fund in March

2006, consists of two parts. The west building is a former

regional post office administrative centre which was

completed by 1887. The extension was added circa 1900.

In 2004 and 2005, extensive renovation work was carried

out with a view to constructing modern office space;

today, the outer facade and stairs in particular recreate

the splendour of the Wilhelmine-era architecture.

Additions and purchases abroad

Frankreich, Paris, 99 Avenue de France

January 2006 saw the first French retail investment added

to the Fund, with the acquisition of this retail property –

which is located within view of the famous Bibliothèque

François Mitterrand library – from international real estate

group ING Real Estate. The lease with sports retailer

Decathlon for the entire space of approximately 4,590 m2 has a twelve-year term. The purchase price, including

transaction costs, amounted to EUR 20.3 million. Ownership

of the property was transferred following the opening

of the Decathlon store at the end of April 2006.

The office part of the building, the tenants of which include

French social security organisation URSSAF and

pharmaceuticals company Merck, was already added

to the Fund portfolio in December 2003.

Frankreich, Lyon, 210 Avenue Jean Jaurès

In November 2005, the purchase agreement was concluded

on behalf of the Fund with French developer Bouygues

Immobilier S.A. for the planned Solaris commercial block

in Gerland, in the south-east of Lyon. By the beginning

of 2008, an eight-storey building offering some 7,200 m2 of office and retail space as well as 130 parking spaces

USA, San Francisco, 225 Bush Street


will be constructed. Building is scheduled to begin in May

2006. When the project has been completed, the vendor

will provide a 12-month rental guarantee. The Solaris

building will be transferred to the SEB ImmoInvest portfolio

on completion. The total investment volume by the

Fund is around EUR 20.0 million.

The project is located in the heart of the Zac du Bon Lait

development area, where a total of 120,000 m2 new residential

and commercial space will be available by 2012.

The vendor is developing a student residence next to the

office property; some of the parking spaces for the Solaris

project will be located in the basement storey of this residence.

Solaris is the second Fund investment in Lyon. At the

beginning of 2001, the office building Le Villette was

acquired in the commercial district of Part-Dieu. In addition

to the regional diversification effect, it is above all the

prospective high returns of the established location of

Lyon that makes a further investment by the Fund in this

regional market a highly attractive proposition.

Italy, Chieti, Megalò shopping centre, Chieti Scalo

The Megalò shopping centre is situated in Chieti, the main

city of the Abruzzo province. After 92% of the rental area

24 SEB ImmoInvest

had been pre-let in December 2005, the property was transferred

in compliance with the contract. The vendor of the

centre was Sirecc S.r.l., a subsidiary of Italian project

developer Boldrin Costruzioni S.p.A. The purchase agreement

for this property had already been signed in May 2004.

The shopping centre, which opened in mid-September 2005,

is the first of its kind and size in the region of Chieti-Pescara.

To date, the structure of the retail sector in the catchment

area was characterised by inner-city retail outlets offering

everyday goods and small, local shopping centres.

With 110 shop units and a sales area of approximately

48,600 m2 , this two-storey shopping centre offers a good

mixture of small- and large-scale retailers. The upper storey

also houses common Southern European leisure facilities

such as a multiplex cinema and restaurants. There are 2,800

car parking spaces on the 134,000 m2 property. At present,

95% of the space is let to 102 companies. Among the main

tenants are brands such as Benetton, Calvin Klein, Esprit,

Sisley, Zara, Douglas, Nike, Media World, Vodafone and

the Iperstanda self-service store. The vendor has provided

a five-year rental guarantee for all units that have not yet

been let.

Italy, Chieti, Megalò shopping centre, Chieti Scalo


Netherlands, Amsterdam, Mercurius & Minerva office

complex, Herikerbergweg 2–36 / 145–179

In December 2005, the Fund bought the Mercurius &

Minerva office complex in Amsterdam from Dutch project

developer Eurocommerce. The purchase price, including

transaction costs, amounted to EUR 98.6 million. The two

buildings were completed at the end of 2005 and are located

in the established Zuid-Oost office market south of

Amsterdam with immediate access to the motorway and

excellent public transport connections.

The two buildings, both of which have architecturally

sophisticated designs, are connected by walkways in the

upper storeys and have some 23,860 m2 rental space and

220 parking spaces in total. They were built on a site subject

to a heritable building right belonging to the City of

Amsterdam.

The long-term tenant is British Telecom, which has leased

some 75% of the buildings for twelve years and will move

into them in January 2007. The rental income for the Fund

has been secured via a 16-year general lease agreement

with the vendor.

Netherlands, Rotterdam, Lotus office complex, Marten

Meesweg 5

In December 2005, the Fund purchased four buildings

in the planned Lotus office complex, situated in the

established Rotterdam office location of Alexanderplein.

The buildings will be built in two phases, one ending at

the beginning of 2007 and the other at the end of the same

year; approximately 33,800 m2 of rental space will be

available in all, as well as 756 parking spaces. The project

developer and vendor is Dutch company OVG. The buildings

are scheduled to be transferred to the Fund portfolio

as three separate properties on completion.

Three of the four buildings have already been let in full

to engineering consultants Royal Haskoning, ABB and software

company CM Logica. All lease contracts have a fixed

term of ten years and include an annual rent escalator clause.

The fourth and smallest building is still being marketed;

project developer OVG will provide a five-year rental guarantee

for this building once it has been completed at the end

USA, Philadelphia, King of Prussia / Wayne, Chesterbrook and Glenhardie Business Parks

of 2007. The total investment costs for the entire project portfolio

are approximately EUR 110 million. For the expansion

of the Lotus office complex, SEB Immobilien-Investment

GmbH secured an option on two further buildings.

USA, Philadelphia, King of Prussia / Wayne, Chesterbrook

and Glenhardie Business Parks

With a total of 69 hectares of space, these two well established

and competitive business parks – Chesterbrook and

Glenhardie – are located in King of Prussia, the largest

decentralised office market in Philadelphia, in the district

of Wayne. Owing to its excellent infrastructure and direct

access to several motorways, King of Prussia is a much

sought-after headquarters location, particularly for tenants

from the pharmaceuticals and healthcare sectors and from

banks and financial services providers.

With the purchase of two business parks in the greater

Philadelphia area in March 2006, the Fund entered a new

market in the USA. In a joint venture with Pitcairn Properties,

who are also responsible for managing and renting

the park, an equity interest of 89.4% in three property

management companies with five commercial building

units (properties) was acquired from state-owned pension

fund FV Office Partners LP. The total investment volume

for the equity interests amounted to approximately

EUR 201 million. The building complex was added to the

Fund as three separate companies.

Annual Report as of 31 March 2006 25


The total usable area of the two parks is approximately

108,245 m2 (SEB ImmoInvest share) and approximately

4,250 parking spaces (SEB ImmoInvest share). The main

users of the park are Centocor (a subsidiary of Johnson &

Johnson), Shire Pharmaceuticals, Amerisource Bergen, ME

Decision and software company GHR System, who together

account for around 45% of gross rental income. At the time

of purchase, approximately 77.4% of the park was let. The

majority of existing lease contracts are long-term, even extending

as far as 2016 in the case of the five key tenants.

Update on properties under construction

The following report refers to the properties under construction

acquired as of the reporting date, which have a

forecast market value on completion of EUR 194.8 million

in total. This corresponds to 3.8% of the current market

value. The construction risk in each case is borne by the

vendor or the general contractor.

France, Boulogne, 27/ 27ter Avenue du General

Leclerc / 2–4 Rue Herault

The Le Prélude office development in Boulogne-Billancourt,

an area to the south-west of Paris within the

Périphérique ring road, was bought in July 2005 as part

of a company acquisition. The vendor of the building,

which was completed in April 2006, was a fund managed

by the international project developer Hines. Promising

negotiations are currently underway with several parties

interested in leasing the entire six-storey building, which

has 8,661 m2 of office space, including a restaurant, and

139 parking spaces. Income from the property is also

secured by a one-year rental guarantee.

Boulogne-Billancourt is considered to be one of Paris’

growth markets, with a central location and moderate

26 SEB ImmoInvest

rent levels compared with other Paris submarkets. Le

Prélude borders directly on ZAC Seguin-Rives de Seine,

which is currently one of the largest development areas in

Europe. Flats, offices, retail outlets and public facilities are

planned for the area (approximately 740,000 m2 ), formerly

the main site of the auto manufacturer Renault, by the end

of 2012.

Formal acceptance of the building took place successfully

in mid-April 2006 with minor defects and a small amount

of work still remaining to be done. At present, the project

developer and its general contractor are rectifying the

defects and completing the outstanding work.

France, Lille, Boulevard de Turin

Construction work on the Euro Centre building, which is located

directly opposite the modern TGV (high-speed train)

station in the centre of the new district of Euralille, are going

according to schedule and will be completed at the end of

April 2006. After completion, the property will offer 7,466

m2 of office space and 131 underground parking bays.

Germany, Berlin, Kleine Kurstrasse

Following delays in the construction phase, which were

due to the responsible project developer, we have decided

to transfer the property to the Fund prior to its completion

and to conclude the necessary construction work under

our own management. The building is scheduled to be

completed up to the point at which individual tenant

requirements are ready to be implemented in June 2006. A

show area has been set up to support the letting activities.

The building, which is located immediately next to the

German Foreign Office, will offer some 3,500 m2 of office

and retail space and 580 m2 of residential space, as well as

20 underground parking spaces.


Germany, Mannheim, Dudenstrasse 46 / 57a

The Dudenstrasse property in Mannheim was transferred

to the Fund in spring 1993. To ensure the continued highquality

usage of the property, extensive renovation work

is being carried out to convert it into flexible, modern

rental space, after which it will be relet. April 2006 saw

the start of the first phase of basic structural alterations,

which involved dividing the building into four possible

rental units per storey. The general contractor for this

project is HochTief Construction AG. In the second phase,

units will be fitted out to meet tenant requirements; this

will be done successively in line with the letting rate. The

first phase is scheduled for completion in autumn 2006.

Austria, Vienna, Rennweg 46–50

The decision was also taken to extensively modernise the

property in Vienna with a view to improving its competitive

position for the long term. The office areas on the first

to sixth floors are currently being fully renovated and

remodelled. First, the entire interior of the building was

gutted in the period up to autumn 2005, and at the same

time a show area was set up to demonstrate what the

office space could look like when fitted out. At present,

plans are being developed with a view to beginning with

the basic extension work in mid-2006. In addition, a number

of different design and usage concepts are being

developed for the shop area on the ground floor.

Austria, Vienna,

Rennweg 46–50


Update on construction and modernisation work

on portfolio properties

France, Combs-la-Ville, ZAC Parisud IV

The first construction phase, consisting of two industrial

buildings, was completed on schedule at the beginning

of June 2005. Both buildings are currently 100% let. The

logistics building comprising the second phase of construction

was completed as planned at the end of 2005.

USA, Chicago, 150 North Michigan Avenue

Work on the renovation of the walkways and the arcade

area in front of the entrance, including sealing work on

the underground storey ceiling beneath, was completed at

the end of 2005.

Record of purchases relating to the statement of assets as of 31 March 2006

28 SEB ImmoInvest

USA, New York, 2 Park Avenue

The extensive renovation of the art deco clinker facade

required by New York City ordinances was completed at

the beginning of 2006.

Since the end of 2005, further reconstruction and renovation

work has been undertaken on the facades of the semibasements

(shop area), restoring and renovating the original

appearance of these natural stone facades. Furthermore,

the window displays of the retail areas are being given a

uniform, modern design. Additional modernisation work

will be undertaken in the lobby and lift cars by mid-2006.

PURCHASES: DIRECTLY HELD PROPERTIES IN COUNTRIES WITH THE EURO AS THEIR CURRENCY

Country Post code City Street Transfer of risks and rewards as of

Germany 10117 Berlin Kleine Kurstr. 15 08/2005

Germany 10785 Berlin Stauffenbergstr. 26 08/2005

Germany 20354 Hamburg Gorch-Fock-Wall 3–7 03/2006

Netherlands 1183 AS Amstelveen / Amsterdam Prof.W.H. Keesomlaan 4 07/2005

Netherlands 1101 CN Amsterdam Herikerbergweg 2–36 / 145–179 12/2005

PURCHASES: DIRECTLY HELD PROPERTIES IN COUNTRIES WITH OTHER CURRENCIES

Country Post code City Street Transfer of risks and rewards as of

USA 94104 San Francisco 225 Bush Street 04/2005

EQUITY INTERESTS IN REAL ESTATE COMPANIES IN COUNTRIES WITH THE EURO AS THEIR CURRENCY

Country Registered office Name Equity interest held Transfer of risks and rewards as of

France Paris SEB ImmoInvest Prélude S.A.S. 100% 07/2005 1)

Italy Milan Megalò S.R.L. 100% 12/2005

PURCHASES: EQUITY INTERESTS IN REAL ESTATE COMPANIES IN COUNTRIES WITH OTHER CURRENCIES

Country Registered office Name Equity interest held Transfer of risks and rewards as of

USA Jenkintown Chesterbrook Partners LP 89.4% 03/2006

USA Jenkintown Glenhardie Partners LP 89.4% 03/2006

USA Jenkintown Chesterbrook 11 Land Owner LP 89.4% 03/2006

1) Investment company and land only; transfer of building after completion


Outlook

Open-ended real estate funds are an important component

of asset allocation from the perspective of diversification

and correlation effects. They offer a variety of clear advantages

compared to other asset classes, such as low correlation

with equities and bonds, long-term stability of returns

combined with a liquid market, and protection against

inflation thanks to the adjustment of rental cash flows, as

well as tax-free income components. In this context, openended

real estate funds are an attractive form of investment

for asset accumulation and retirement provision.

Active fund management that continuously monitors all

components of the fund, striking an optimal balance between

risk distribution and return, is decisive for the

long-term success of an open-ended real estate fund. Of

prime importance in this connection are strict risk management,

active liquidity management, efficient processes

and proactive portfolio management that ensures broad

diversification of the fund assets. Accordingly, the selection

of the investment properties by markets, types of use

and individual characteristics is extremely important for

portfolio management, as is continuous portfolio optimisation.

Due to the ongoing internationalisation of real

estate markets, there is now a growing number of investment

markets available worldwide and we aim to tap the

potential of these successively over the next few years.

By aligning all of our activities systematically according to

the principles mentioned above, it is possible for us to seize

these investment opportunities. Our aim is to continue to

offer you a product with stable values for the purposes of

long-term asset accumulation. To this end, we will continue

to implement our cash flow-oriented strategy. With its international

portfolio, SEB ImmoInvest is in a strong position

to take advantage of the expected upturn in the real

estate market. This means that there is a solid basis for a

continued positive development in Funds returns.

We would like to take this opportunity to thank you on

behalf of all our employees for the confidence you have

shown in us and hope that you will continue to accompany

us on this successful path.

SEB Immobilien-Investment GmbH

Management

Knoflach Kraus Chua

Frankfurt am Main, June 2006

Annual Report as of 31 March 2006 29


Development of Fund Assets

EUR EUR EUR

Fund assets at the beginning of the year 5,131,851,344.05

Distribution for the previous year

Equalisation item

for units issued/ redeemed up to the

– 207,435,171.50

distribution date 9,158.60

Inflow of funds from sale of units 1,555,288,785.12

Outflow of funds from redemption of units – 1,892,464,008.20

Net outflow of funds – 337,175,223.08

Equalisation paid 20,013,644.44

Ordinary net income

Realised profits less unrealised changes in value from previous years

178,594,202.51

on liquidity portfolio 18,869,527.17

Changes in value from previous years (of which in foreign currency: 0.00) 8,775,457.17 10,094,070.00

Realised losses less unrealised changes in value from previous years

on liquidity portfolio – 18,595,750.89

Changes in value from previous years

Changes in value of unrealised profits

(of which in foreign currency: 0.00) – 452,505.94 – 18,143,244.95

on properties (of which in foreign currency: 33,065,262.04) 73,129,443.58

on equity interests in real estate companies (of which in foreign currency: 3,267,022.14) 22,329,279.35 95,458,722.93

on liquidity portfolio

Changes in value of unrealised losses

(of which in foreign currency: 0.00) 1,277,000.00

on properties (of which in foreign currency: – 3,315,954.86) – 56,160,560.45

on equity interests in real estate companies (of which in foreign currency: – 113,207.51) – 483,107.52 – 56,643,667.97

on liquidity portfolio (of which in foreign currency: 0.00) – 7,087,736.97

Changes in exchange rates – 4,190,646.35

Fund assets at the end of the year 4,806,622,451.71

Disclosures on the Development of Fund Assets

The Development of Fund Assets shows which transactions

concluded during the period under review are

responsible for the new assets disclosed in the Fund’s

statement of assets. It thus presents a breakdown of the

difference between the assets at the beginning and the end

of the financial year.

The Distribution for the previous year item represents the

amount distributed in accordance with the previous year’s

Annual Report (see the Total distribution item under

“Calculation of the distribution”).

30 SEB ImmoInvest

The Inflow of funds from sale of units and the Outflow of

funds from redemption of units are calculated as the

respective redemption price multiplied by the number of

units sold or redeemed. The redemption price includes

the income per unit; this is referred to as the equalisation

paid. This item is deducted from or added to the inflow

and outflow of funds; consequently, the inflow and outflow

only indicate the change in assets.

The Ordinary net income is given in the statement of

income and expenditure.


Realised profits on the liquidity portfolio (securities /

money market instruments) represent the difference between

the lower purchase prices and the prices at sale or

maturity. Unrealised changes in the value of the liquidity

portfolio consist of changes up to the end of the previous

year in the market values of the securities/money market

instruments that were sold or matured during the financial

year. Deducting the unrealised profits from the previous

year gives the realised profits for the period under review.

Realised losses are calculated in the same way as realised

profits.

Realised profits and losses on the liquidity portfolio also

include realised profits and losses on the Euro Bund

Future contracts traded on EUREX. These futures contracts

were employed to hedge fixed-income securities

against price fluctuations.

Net changes in the value of unrealised profits on properties

and equity interests in real estate companies are the

result of adjustments to and changes in book values during

the financial year.

With regard to the location of properties and equity interests

in real estate companies, a distinction is made between

countries with the euro and those with other currencies

(the deciding factor for real estate companies is the

country of domicile).

The Net change in the value of unrealised profits on the

liquidity portfolio is the result of changes in the market

prices of portfolio securities and money market instruments.

Net changes in the value of unrealised losses on properties

and equity interests in real estate companies are the

result of adjustments to and changes in book values during

the financial year.

The Net change in the value of unrealised losses on the

liquidity portfolio is the result of changes in the market

prices of portfolio securities and money market instruments.

Changes in exchange rates represent the difference in the

measurement of foreign currency assets at the respective

exchange rates at the beginning of the period under

review and – excluding depreciation and impairment

losses – the end of the period under review. The result of

depreciation and impairment losses, calculated using the

exchange rate at the end of the period under review, is

included in the net change in unrealised profits/losses

on properties, equity interests in real estate companies

and the liquidity portfolio. In the case of assets acquired

in the year under review, the difference between the valuation

at the exchange rate when the assets are capitalised

and at the exchange rate at the end of the period under

review is disclosed. Changes in exchange rates, which

amount to EUR – 4.2 million, include the net amount

produced by offsetting exchange rate gains (EUR 18.9

million) and the net loss from forward exchange transactions

employed for hedging against exchange rate risks

(EUR – 23.1 million). The net loss from forward exchange

transactions includes realised changes in value in the

amount of EUR – 25.5 million and unrealised changes in

value amounting to EUR 2.4 million.

Annual Report as of 31 March 2006 31


Statement of Assets as of 31 March 2006

EUR EUR EUR

% of Fund

assets

I. Properties

1. Commercial properties 3,844,209,954.83 79.98

(of which in foreign currency: 622,204.954.83)

2. Properties under construction 80,915,062.63 1.68

(of which in foreign currency: 0.00)

3. Undeveloped property 5,435,000.00 0.11

(of which in foreign currency: 0.00)

4. Other properties and rights (section 67 (2) InvG) 139,350,000.00 2.90

(of which in foreign currency: 0.00)

Total properties 4,069,910,017.46 84.67

(total in foreign currency: 622,204,954.83)

II. Equity interests in real estate companies

1. Majority interests 371,913,980.75 7.74

(total in foreign currency:

III. Liquidity portfolio

135,942,929.91)

1. Bank deposits 617,024,265.45

(of which in foreign currency: 10,297,472.64)

2. Money market instruments 231,369,282.32

(of which in foreign currency: 0.00)

3. Securities 214,120,700.00

(of which in foreign currency: 0.00)

Total liquidity portfolio 1,062,514,247.77 22.11

(total in foreign currency:

IV. Other assets

10,297,472.64)

1. Receivables from real estate management 70,354,716.96

(of which in foreign currency: 30,213,944.53)

2. Receivables from real estate companies 153,385,766.11

(of which in foreign currency: 14,529,770.08)

3. Interest claims 8,846,771.31

(of which in foreign currency: 197,047.56)

4. Miscellaneous 140,462,066.35

(of which in foreign currency: 16.511.922,63)

Total other assets 373,049,320.73 7.76

(total in foreign currency: 61,452,684.80)

Total 5,877,387,566.71 122.28

(of which in foreign currency: 829,898,042.18)

V. Liabilities from

1. Loans (of which collateralised

[section 82(3) InvG]: EUR 474,441,286.12)

832,329,119.83 832,329,119.83 17.32

(total in foreign currency: 342,183,793.08)

2. Land purchases and construction projects 50,709,010.56

(of which in foreign currency: 408,663.33)

3. Real estate management 84,288,979.35

(of which in foreign currency: 32,220,335.96)

4. Miscellaneous 15,014,387.43 150,012,377.34 3.12

(of which in foreign currency: 3,770,645.55)

Total liabilities 982,341,497.17 20.44

(total in foreign currency: 378,583,437.92)

VI. Provisions 88,423,617.83 1.84

(of which in foreign currency: 15,868,523.84)

Total 1,070,765,115.00 22.28

(total in foreign currency: 394,451,961.76)

Fund assets 4,806,622,451.71 100.00

(of which in foreign currency: 435,446,080.42)

Unit value (EUR) 56.97

Number of units in circulation 84,367,300

Exchange rates at the reporting date:

Sterling (GBP) 0.696650 = EUR 1

Swedish krona (SEK) 9.408270 = EUR 1

US dollar (USD) 1.209730 = EUR 1

32 SEB ImmoInvest


Disclosures on the Statement of Assets

Fund assets fell by EUR 325.3 million or 6.3% in financial

year 2005/2006 to EUR 4,806.6 million due to net outflows

of funds.

I. Properties

Six properties were added to the Fund in financial year

2005/2006. Three of them are in Germany (one of which is

under construction), two in the Netherlands and one in

the USA (cf. Property Record starting on page 38). In addition,

four properties under construction were acquired in

the Netherlands and will be transferred to the Fund on

completion, which is scheduled for the end of 2006.

The commercial properties and undeveloped properties

were included in the Fund assets at the market values

calculated by the experts in each case. Property under

construction was included in the Fund assets at the value

of the land plus accumulated construction costs. The

property in Combs-la-Ville in France was completed in

the period under review. Four properties were under

construction at the end of the financial year, two of which

are in Germany and one each in France and Austria. One

of the properties in Germany and the property in Austria

are portfolio properties that were reclassified as properties

under construction due to extensive restructuring measures.

These properties are reported at their market values.

The construction costs are recognised in the form of provisions

for construction costs.

Properties held in partial ownership by the Fund are reported

under Other properties and rights (section 67 (2)

InvG). This concerns two properties in both Germany and

Spain, and one in the Netherlands.

Property assets increased in financial year 2005/2006 by

EUR 546.3 million to EUR 4,069.9 million, and consisted of

109 directly held properties as of the reporting date, 31

March 2006. Property assets located abroad were divided

between eurozone countries, with EUR 1,508.0 million,

and the USA with EUR 622.2 million.

II. Equity interests in real estate companies

In the period under review, the Fund acquired the following

real estate companies: SEB ImmoInvest Prélude S.A.S.

with one property in Boulogne (France), Megalò S.R.L.

with one property in Chieti Scalo (Italy), Chesterbrook

Partners LP with three properties in Wayne (USA), and

Glenhardie Partners LP with one property as well as

Chesterbrook 11 Land Owner LP with an undeveloped

property, both of which are in Wayne (USA).

Equity interests in real estate companies now comprise

twelve companies with 14 properties and a total market

value of EUR 907.4 million. Taking into account the companies’

other assets (EUR 76.7 million) and liabilities (EUR

49.0 million), as well as external financing (EUR 409.8 million)

and shareholder loans (EUR 153.4 million), the value

of the equity investments amounts to EUR 371.9 million.

Liabilities from external financing comprises EUR 273.9

million of loans in US dollars, loans in euros totalling

EUR 130.6 million and a EUR 5.3 million loan in Swedish

krona. The companies’ external financing has a duration

of 5.1 years.

III. Liquidity portfolio

The bank deposits, money market instruments and securities

disclosed under the Liquidity portfolio item primarily

serve to cover payment obligations for the distribution

calculated up to the reporting date in the amount of

EUR 194.0 million, as well as expenditure relating to the

completion of construction projects and purchase price

payments for acquired property in the amount of EUR

173.3 million. A further EUR 174.7 million is required for

the repayment of loans due within the next two years and

EUR 114.7 million for the settlement of other liabilities

and provisions. EUR 240.3 million has been set aside to

fulfil the statutory requirements on minimum liquidity.

This amount is invested in bank deposits payable on

demand. The remainder is earmarked for use in further

property acquisitions.

Annual Report as of 31 March 2006 33


Disclosures on the Statement of Assets

The Money market instruments item is used to disclose

securities with residual terms of a maximum of twelve

months at the time of acquisition, or whose rate of interest is

adjusted at least once a year in line with market conditions.

IV. Other assets

Receivables from real estate management include rent

receivables in the amount of EUR 13.2 million and incidental

expenses chargeable to tenants in the amount of EUR 57.2

million. This is offset by appropriate prepaid charges by

tenants, which amount to EUR 62.5 million and are included

in the item Liabilities from real estate management.

Shareholder loans are disclosed under Receivables from

real estate companies. EUR 138.9 million of this relates to

loans in euros, and EUR 14.5 million to a loan in Swedish

krona.

Interest claims amounting to EUR 5.5 million result from

deferred interest income from time deposit investments

and fixed-income securities. A further EUR 3.3 million in

interest receivables was reported from shareholder loans

to real estate companies.

The other assets disclosed under Miscellaneous primarily

represent sales tax receivables from tax authorities in

Germany and abroad in the amount of EUR 87.9 million.

Receivables from advance payments for operating costs

due from property managers abroad amount to EUR 32.8

million. Receivables from real estate companies total

EUR 3.2 million.

In the case of property acquisitions in foreign currencies,

part of the currency risk is hedged by taking out loans in

the relevant foreign currency. Internal financing is hedged

against exchange rate changes using forward contracts.

An overview of the open currency items can be found in

the table Money Market Instruments, Securities and

Hedging Instruments Portfolio as of 31 March 2006.

34 SEB ImmoInvest

In the past year, 63 forward exchange transactions with a

volume of USD 1,451.9 million and 20 forward exchange

transactions with a volume of SEK 956.8 million were

concluded as exchange rate hedges. Receivables from

counterparties in forward exchange transactions in US

dollars amount to EUR 5.1 million. Liabilities to counterparties

in forward exchange transactions in Swedish

krona total EUR 0.6 million. These are disclosed under

Miscellaneous liabilities.

V. Liabilities

Liabilities from loans refer primarily to loans taken out

for the acquisition of property abroad. Please see the

“Overview of loans” table for a breakdown of the loan

portfolio by currency and by duration in each case. The

Breakdown of loan volumes per currency by fixed interest

rate period chart (page 11) illustrates the breakdown of

loan volumes by fixed interest period.

Liabilities from land purchases and construction projects

consist of remaining payment obligations on acquisitions

of properties and real estate companies in the amount of

EUR 50.3 million and construction services in the amount

of EUR 0.4 million.

Liabilities from real estate management are primarily

composed of EUR 62.5 million for prepaid allocable costs,

EUR 12.4 million for rental payments already received,

and EUR 5.7 million in cash security bonds.

Miscellaneous liabilities include loan interest liabilities

in the amount of EUR 6.0 million, liabilities arising from

the deferral of rental income as of the reporting date in

the amount of EUR 4.7 million, accounts payable totalling

EUR 2.5 million and liabilities from management and custodian

bank fees in the amount of EUR 1.1 million, as well

as liabilities from counterparties in relation to forward

exchange and Bund Future transactions totalling EUR 0.7

million.


VI. Provisions

Provisions refer primarily to maintenance measures

(EUR 17.4 million), construction costs (EUR 17.8 million)

and taxes (EUR 51.0 million). EUR 34.2 million of the

latter figure relates to provisions for deferred taxes on

potential foreign capital gains, and EUR 16.8 million

relates to ongoing foreign taxes on income.

The SEB ImmoInvest Fund has not yet been definitively

assessed by the Dutch tax authorities for the tax periods

from 1996/97 onwards. This is due to the fact that the

Dutch authorities have yet to decide on uniform depreciation

rates applicable for tax purposes to property held in

German real estate funds. Various possible solutions are

under discussion, but an agreement is not yet in sight. It

was agreed with Dutch tax advisers that a depreciation

rate of 4% would be used on the tax returns submitted to

the authorities.

Capital gains tax

In some countries it is possible to transfer capital gains

flexibly; as a result, due to the planned continuous reinvestments,

Belgium and the Netherlands (nominal value

of deferred taxes: EUR 10.0 million) were not included in

the risk provision calculated for capital gains tax, and a

reduced tax rate was taken into consideration for Spain.

The provision was charged to Fund capital as it is not

classified as a distributable reserve, and represents an

appropriate balance between the economic interests of investors,

regardless of the time they join or leave the Fund.

Taxes on foreign capital gains are only incurred if a book

profit is actually generated. The timing and amount of

such taxes is uncertain, as both market conditions and

the basis for tax assessment can change constantly.

Based on country-specific tax rates, risk provisions were

set up for the period under review in the amount of 35.0%

(EUR 34.2 million) of the nominal value of the deferred

taxes (EUR 97.6 million). The frequency of disposals in

the past and the properties’ expected future turnover

rate were taken into consideration along with the current

country-specific tax rates. The difference between the current

market values and the book values for tax purposes

of the properties, taking generally applicable sales costs

into consideration, was taken as the basis for assessment

when calculating the size of the provisions for deferred

taxes on foreign capital gains.

The calculation also included US real estate companies

with the legal form of partnerships. These are treated

as a direct acquisition for tax purposes, with the result

that any gain on the disposal of shares is subject to

capital gains tax. Capital gains tax was calculated in the

same manner as the method described above. The market

value of the property was merely replaced by the going

concern value.

Annual Report as of 31 March 2006 35


USA

San Francisco

Lisbon

Regional Distribution of Fund Properties

Europe: 112 properties,

of which 65 properties in Germany

USA: 11 properties

Porto

Chicago, IL

Seville

Wayne, PA

Herndon, VA

Alcalá de Guadaira

Harrison, NY

New York

Málaga

Liverpool

Madrid

Cuenca

London

Alcoy

Lille

Boulogne-

Billancourt

Paris

Meudon

Issy-les-Moulineaux

Chatillon

Combs-la-Ville

Bordeaux

Barcelona

Alkmaar

The Hague

Schiphol-Rijk

Diegem Zaventem

Brussels

Luxemburg

Lyon

Marseille

Capital with investment

Capital

Town/city

Amsterdam

Amstelveen

Berne

Milan

Town/city with investment

Oslo

Frankfurt

Basiglio

Hamburg

Munich

Tavagnacco/ U


Riga

Tallinn

Warsaw

Prague

Bratislava

Budapest

Ljubljana

Belgrade

Helsinki

Copenhagen

Stockholm

Rome

St. Petersburg

Chieti

Palermo

Tirana

Sarajevo

Athens

Vienna

Berlin

Gothenburg

Udine

Berlin

Munich

Hamburg

Frankfurt

Aschheim

Bochum

Bremen

Darmstadt

Dietzenbach

Duisburg

Düsseldorf

Essen

Esslingen

Freiburg

Hagen

Hanover

Heusenstamm

Kelsterbach

Cologne

Leverkusen

Lippstadt

Ludwigshafen

Magdeburg

Potsdam

Mannheim

Marl

Neu-Isenburg

Neuss

Nuremberg

Oberursel

Regensburg

Seevetal-Hittfeld

Unterschleissheim

Viersen

Worms

Idar-Oberstein

Germany


Property Record as of 31 March 2006

Location of property Type of use (as a % of rental space)

Post code

I. DIRECTLY HELD PROPERTIES IN COUNTRIES WITH THE EURO

Germany

City

85609 Aschheim-Dornach Einsteinring 31–39 C 92 0 2 0 0 0 6 10/2000 2000/2001

13357 Berlin Prinzenallee 89-90 C 52 13 1 0 0 0 34 01/1994 1997

10623 Berlin Steinplatz 2 C 92 0 8 0 0 0 0 12/2001 1970/1994

10785 Berlin Stauffenbergstr. 26 C 0 0 0 100 0 0 0 08/2005 2005

10117 Berlin Johannisstr. 20 C 100 0 0 0 0 0 0 09/2001 1908/2001

10117 Berlin Kleine Kurstr. 15 C (under con.) na na na na na na na 08/2005 na

12105 Berlin Alarichstr. 12–17 C 94 0 6 0 0 0 0 01/1996 1995

44789 Bochum Universitätsstr. 105 C 99 0 1 0 0 0 0 04/1997 1992/1993

28201 Bremen Neuenlander Str. 117 C 0 72 21 0 0 0 7 12/1991 1989

64283 Darmstadt Wilhelminenstr. 1–3 C 79 2 15 0 0 0 4 03/1996 1961

63128 Dietzenbach Waldstr. 41a C 8 0 92 0 0 0 0 04/2003 2002/2003

45058 Duisburg Hansastr. 15 C/H 93 0 3 0 0 0 4 08/1997 1997/2000

40211 Düsseldorf Couvenstr. 6–8 C 83 0 17 0 0 0 0 02/1993 1914/1994

40227 Düsseldorf Kruppstr. 108 C 96 0 4 0 0 0 0 08/1993 1992/1993

40237 Düsseldorf Grafenberger Allee 293 C 94 0 5 0 0 0 1 07/2002 2002

40227 Düsseldorf Moskauer Str. 25–27 C 94 0 5 0 0 0 1 07/2003 2003

40470 Düsseldorf Münsterstr. 304–306 C 38 0 2 58 0 2 0 04/2000 1984

45130 Essen Alfredstr. 57–65 C 96 0 1 0 0 0 3 12/1994 1998

45329 Essen Gladbecker Str. 425–427 C 91 0 8 0 0 0 1 02/1992 1991/1992

45329 Essen Gladbecker Str. 431–435 C 73 0 27 0 0 0 0 03/1991 1990/1991

45128 Essen Kruppstr. 16 C 76 0 10 0 0 0 14 08/2002 1948/1990

73728 Esslingen Fleischmann-/Berliner-/Martin-Str. C 31 50 8 0 0 0 11 10/2002 2002

60313 Frankfurt am Main Stiftstr. 30 C 72 16 10 0 2 0 0 03/1994 1952/1998

60489 Frankfurt am Main Stützeläckerweg 12–14 C 81 0 9 0 0 0 10 09/1989 1989/1990

60327 Frankfurt am Main Rotfeder-Ring 1–13 C 87 10 3 0 0 0 0 05/2004 2003/2004

60439 Frankfurt am Main Lurgiallee 3 C 0 0 0 0 0 0 100 10/2000 1987/2001

60528 Frankfurt am Main Hahnstr. 49 C 93 0 7 0 0 0 0 06/2003 2002

60439 Frankfurt am Main Marie-Curie-Str. 24–28 C 89 0 11 0 0 0 0 01/2001 2000

60528 Frankfurt am Main Herriotstr. 4 C 93 0 7 0 0 0 0 12/2001 1969/2001

79098 Freiburg Bertoldstr. 48/Sedanstr. 7 C 30 1 2 0 0 62 5 05/1996 1998

79115 Freiburg Lörracher Str. 16/16a C 71 0 5 0 0 0 24 12/1990 1991/1992

82031 Grünwald Bavariafilmplatz 8 / Luise-Ulrich-Str. 2–8 C/H 74 0 26 0 0 0 0 10/1997 1998

58095 Hagen Friedrich-Ebert-Platz 2 C 53 36 11 0 0 0 0 12/2003 2003

58095 Hagen Friedrich-Ebert-Platz 1–3 C 1 91 8 0 0 0 0 12/2003 1960/2003

20354 Hamburg ABC-Str. 19 C 94 3 3 0 0 0 0 04/2000 2000

22083 Hamburg Humboldtstr. 58–62 C 92 0 5 0 0 0 3 12/2004 2003

22145 Hamburg Bargkoppelweg 52–66a C/H 23 0 77 0 0 0 0 02/1995 1970/2004

38 SEB ImmoInvest

Street

Type of

property

Office

Retail/

catering

Industry

(Warehousing, halls)

Hotel

Residential

Leisure

Miscellaneous

Acquisition date

Year built/

renovated 1)


Area 2) in m 2 Features Property data

Area of land

in m2 Commercial

Residential

District heating

Air conditioning/

auxiliary cooling

Goods lift

Passenger lift

Sprinkler system

Hot water (central/

decentralised)

Central heating

Property category

13,300 17,148 Office high Non-central office centre 5 465

1,405 5,333 Office high Other city centre locations 17 58

2,188 7,353 Office high Central business district (CBD) 1 61

12,127 44,270 Hotel very high Other city centre locations 1 478

2,694 10,186 Office high Other city centre locations 1 30

725 na na na na Other city centre locations na na

7,473 14,527 Office high Other city centre locations 2 135

2,381 4,229 Office high Other city centre locations 1 82

20,883 5,408 Retail medium Retail park 1 449

11,642 25,657 Office simple Central business district (CBD) 13 121

24,877 16,679 Logistics medium Established logistics location 2 102

14,707 23,720 Office high Other city centre locations 1 103

741 2,143 Office high Central business district (CBD) 1 6

3,381 6,198 Office high Other city centre locations 31 143

4,671 10,684 Office high Non-central office centre 11 122

6,047 20,879 Office high Non-central office centre 9 269

10,331 21,893 Office* medium Other city centre locations 17 72

2,137 5,558 Office high Central business district (CBD) 6 85

7,607 4,803 Office high Other city centre locations 5 79

7,881 6,883 Office high Other city centre locations 12 119

11,826 24,971 Office medium Other city centre locations 1 96

9,485 23,107 Retail high City centre (1a) 35 325

1,801 4,645 90 Office high Other city centre locations 3 26

6,453 10,831 Office high Commercial estate 8 167

7,340 16,823 Office high Non-central office centre 10 303

7,631 7,455 Office* high Non-central office centre 1 23

7,769 15,423 Office very high Non-central office centre 2 102

13,582 29,472 Office high Non-central office centre 1 471

15,688 24,034 Office very high Non-central office centre 3 434

2,660 11,235 Retail* high City centre (1a) 19 0

4,458 5,265 Office medium Other city centre locations 9 107

14,425 3) 8,842 Office high Other locations 11 161

1,155 3,904 Office high City centre (1a) 10 0

15,703 29,488 Retail high City centre (1a) 58 864

3,209 14,594 Office very high Central business district (CBD) 2 140

4,290 9,601 Office high Other city centre locations 9 68

83,073 4) 38,885 186 Logistics medium Established logistics location 15 56

Type of property:

C = Commercial property

H = Heritable building right

P = Partial ownership

U = Undeveloped property

1) The last year in which major renovations, extensions,

or modernisation took place

2) The area corresponds to the leased area at the reporting date

3) 2

thereof heritable building right: 12,666 m

4) 2

thereof heritable building right: 18,226 m

5) Partial ownership

6) Heritable building right in favour of the real estate company

Chrysalis S.A., Brussels

7) Volume ownership

Property quality

Location category

* In contrast to the predominant types

of use by area, a corresponding

classification was made within the

standardised construction costs

category.

Number of tenants

Number of car

parking spaces

() Only completed parts can be

disclosed at present.

The size of the property corresponds

to the information provided

in the expert opinion.

Annual Report as of 31 March 2006 39


Property Record as of 31 March 2006

Location of property Type of use (as a % of rental space)

Post code

Germany

22041 Hamburg Schlossstr. 8 C 80 2 8 0 0 0 10 10/1997 1960/1998

20354 Hamburg Gorch-Fock-Wall 3–7 C 79 0 21 0 0 0 0 03/2006 1883/2005

30659 Hanover Im Heidkampe 9–11 C 96 0 4 0 0 0 0 12/2003 2003

30179 Hanover Vahrenwalder Str. 315–315a C 64 0 35 0 0 0 1 12/2003 2003

30559 Hanover Hägenstr. 4 C 8 0 92 0 0 0 0 09/1996 1984/1996

63150 Heusenstamm Borsigstr. 6 C 56 0 43 0 0 0 1 08/1990 1990/1991

55743 Idar-Oberstein Nahe-Center 1–10 C 20 50 15 0 6 0 9 05/1989 1988

65451 Kelsterbach Am Grünen Weg 1–3 C 80 0 20 0 0 0 0 07/1994 1992

50825 Cologne Oskar-Jäger-Str. 50 C 86 0 13 0 1 0 0 03/1997 1993

51373 Leverkusen Wiesdorfer Platz 82 C/P 37 63 0 0 0 0 0 12/1995 1971

59557 Lippstadt Planckstr. 1 C/H 0 78 22 0 0 0 0 02/1990 1974/1981

67059 Ludwigshafen Ludwigsplatz 1 C 86 14 0 0 0 0 0 03/1995 1995/1996

39104 Magdeburg Otto-von-Guericke-Str. 86a / Leiterstr. 12 C 89 4 7 0 0 0 0 12/1993 1980/1996

68161 Mannheim Kunststr., N7 C 37 54 8 0 0 0 1 10/2002 2002

68167 Mannheim Dudenstr. 46/57a C (under con.) na na na na na na na 03/1993 1992

45768 Marl Bergstr. 228 C/P 0 99 0 0 0 0 1 02/1994 1971/1994

80339 Munich Westendstr. 160–162 / Barthstr. 24–26 C 90 0 10 0 0 0 0 01/1996 1993/1996

63263 Neu-Isenburg Dornhofstr. 34 C 94 0 6 0 0 0 0 12/2001 2000/2001

63263 Neu-Isenburg Dornhofstr. 36 C 94 0 6 0 0 0 0 12/2001 2001

41460 Neuss Hellersbergstr. 10a / 10b C 99 0 1 0 0 0 0 07/1995 1986/1994

90431 Nuremberg Karl-Martell-Str. 60 C 100 0 0 0 0 0 0 12/1998 1991/1992

61440 Oberursel Ludwig-Erhard-Str. 21 C 100 0 0 0 0 0 0 12/2000 1994/1995

14482 Potsdam Großbeerenstr. 181–183 C 100 0 0 0 0 0 0 12/1998 1997

93059 Regensburg Donaustaufer Str. 168 C 5 68 4 0 0 0 23 12/1994 1988

21218 Seevetal Kirchstr. 26 C 23 44 0 0 14 0 19 05/1989 1976/2000

85716 Unterschleissheim Edisonstr. 1 C 53 0 47 0 0 0 0 09/1989 1989

41748 Viersen Kränkelsweg 2–16 C 26 0 74 0 0 0 0 12/1992 1992

67547 Worms Mainzer Str. 16–18 C 0 63 12 0 0 0 25 08/1989 1989

Belgium

1040 Brussels 41 Avenue des Arts C 99 0 1 0 0 0 0 09/1996 1958/2003

1000 Brussels 306–310 Avenue Louise C 76 19 5 0 0 0 0 10/1996 1972

1000 Brussels 139–141 Rue Royale C 100 0 0 0 0 0 0 01/1997 1976/1994

1000 Brussels 34 Rue de la Loi U 6) na na na na na na na 12/2001 na

1130 Brussels 20 Avenue du Bourget C/H 95 0 5 0 0 0 0 12/1997 1986/1990

1831 Diegem / Brussels 3 Kennedylaan C 98 0 2 0 0 0 0 09/1997 1992

1930 Zaventem / Brussels 9 Belgicastraat C 96 0 4 0 0 0 0 03/1998 1997

France

City

92320 Chatillon / Paris 200 Rue de Paris / 6 Rue Andre Gide C 91 4 0 0 0 0 5 03/2003 2005

77380 Combs-la-Ville / Paris ZAC Parisud IV C 8 0 92 0 0 0 0 02/2004 2005

59777 Lille Boulevard de Turin C (under con.) na na na na na na na 02/2005 na

40 SEB ImmoInvest

Street

Type of

property

Office

Retail/

catering

Industry

(Warehousing, halls)

Hotel

Residential

Leisure

Miscellaneous

Acquisition date

Year built/

renovated 1)


Area 2) in m 2 Features Property data

Area of land

in m2 8,513 15,350 Office high Other city centre locations 35 167

4,975 13,512 Office medium Central business district (CBD) 3 24

5,842 8,049 Office high Non-central office centre 2 121

18,427 19,783 Office high Commercial estate 2 304

24,655 15,816 Logistics medium Established logistics location 1 120

3,927 5,795 Office high Other city centre locations 6 100

607 1,662 106 Retail medium City centre (1a) 16 34

14,302 15,371 Office high Non-central office centre 1 580

4,858 12,126 154 Office high Commercial estate 6 213

371,200/1,000,000 20,371 Retail medium City centre (1a) 1 0

of 23,843 5)

19,488 6,612 Retail medium Retail park 1 320

1,049 4,063 Office high Central business district (CBD) 8 24

937 4,776 Office high Central business district (CBD) 9 14

2,951 14,490 Retail high City centre (1a) 9 138

7,485 na na Office high Commercial estate na na

97,008/1,000,000 6,300 Retail medium City centre (1a) 20 0

of 54,691 5)

Commercial

Residential

District heating

Air conditioning/

auxiliary cooling

Goods lift

Passenger lift

Sprinkler system

Hot water (central/

decentralised)

Central heating

Property category

5,996 10,399 Office high Other city centre locations 4 167

3,890 6,060 Office high Non-central office centre 4 142

6,750 7,284 Office high Non-central office centre 4 422

7,025 7,314 Office high Non-central office centre 2 216

15,908 24,985 Office high Commercial estate 1 563

4,972 6,081 Office high Other locations 1 100

3,595 5,290 Office high Other city centre locations 2 96

11,795 5,855 Retail medium Retail park 1 178

3,901 1,802 305 Retail medium City centre (1a) 11 57

7,712 5,337 Office medium Commercial estate 0 106

19,090 10,841 Logistics medium Commercial estate 7 136

2,692 2,212 Retail medium City centre (1a) 5 50

750 3,503 Office high Central business district (CBD) 1 55

1,271 6,213 Office medium Other city centre locations 9 70

995 5,478 Office medium Other city centre locations 0 52

875 0 na na na na na na na na na Central business district (CBD) na na

14,799 11,023 Office medium Other city centre locations 1 284

8,205 7,205 Office medium Non-central office centre 1 182

4,800 4,724 Office high Non-central office centre 1 135

3,124 18,614 Office high Non-central office centre 4 311

81,875 31,686 Logistics medium Established logistics location 5 419

7) na na Office high Central business district (CBD) na na

Type of property:

C = Commercial property

H = Heritable building right

P = Partial ownership

U = Undeveloped property

1) The last year in which major renovations, extensions,

or modernisation took place

2) The area corresponds to the leased area at the reporting date

3) 2

thereof heritable building right: 12,666 m

4) 2

thereof heritable building right: 18,226 m

5) Partial ownership

6) Heritable building right in favour of the real estate company

Chrysalis S.A., Brussels

7) Volume ownership

Property quality

Location category

* In contrast to the predominant types

of use by area, a corresponding classification

was made within the standardised

construction costs category.

Number of tenants

Number of car

parking spaces

() Only completed parts can be

disclosed at present.

The size of the property corresponds

to the information provided

in the expert opinion.

Annual Report as of 31 March 2006 41


Property Record as of 31 March 2006

Location of property Type of use (as a % of rental space)

Post code

France

69003 Lyon 26 Rue de la Villette C 100 0 0 0 0 0 0 01/2001 2001/2002

92190 Meudon / Paris 2 Rue de Paris C 98 0 2 0 0 0 0 06/2000 2000/2001

75014 Paris 200–216 Rue Raymond Losserand C 95 0 5 0 0 0 0 07/1999 1978

75783 Paris 28/32 Avenue Victor Hugo C 85 7 8 0 0 0 0 01/1998 1997

92981 Paris 33 Place Ronde C 100 0 0 0 0 0 0 10/2004 1991

92981 Paris 32 Place Ronde C 93 7 0 0 0 0 0 10/2004 1991

75013 Paris 99 Avenue de France C 98 0 1 0 0 0 1 12/2003 2004

Italy

20080 Basiglio / Milan Via Ludovico il Moro 6 C 78 0 21 0 0 0 1 12/2003 2003

20080 Basiglio / Milan Via Ludovico il Moro 6 C 77 0 21 0 0 0 2 10/2004 2004

20123 Milan Via Dante 15 C 68 14 18 0 0 0 0 12/1999 1898/2000

20099 Milan Via Ercole Marelli 303 C 88 0 12 0 0 0 0 12/1998 1992

20123 Milan Via della Chiusa 2 C 88 0 8 0 0 0 4 07/2004 1965/2005

00142 Rome Via Laurentina 449 / Via del Serafico 49–61 C 70 5 23 0 0 0 2 05/2003 1978/1982

33010 Tavagnacco / Udine Via Nazionale 127 C 0 100 0 0 0 0 0 07/2004 1993

Luxemburg

2930 Luxemburg 16a Avenue de la Liberté C 84 0 16 0 0 0 0 12/1996 1921/2000

1855 Luxemburg 46a Boulevard J.-F.-Kennedy C 91 0 8 0 0 0 1 06/1998 1999

Netherlands

1823 CJ Alkmaar Noorderkade 100–199 C/P 4 94 2 0 0 0 0 07/1998 1997

1183 AS Amstelveen / Amsterdam Prof.W.H.Keesomlaan 4 C 80 20 0 0 0 0 0 07/2005 2000

2596 JM The Hague Oostduinlaan 2 C 100 0 0 0 0 0 0 01/1997 1928/1996

2514 AR The Hague Kanonstraat 4 C 96 0 4 0 0 0 0 11/1996 1996

2521 HD The Hague Verheeskade 25 C/H 60 20 20 0 0 0 0 11/1996 1997

1119 PE Schiphol-Rijk / Amsterdam Boeing Avenue 101 C 100 0 0 0 0 0 0 09/1999 1999

1119 PE Schiphol-Rijk / Amsterdam Boeing Avenue 53/99 C 99 0 1 0 0 0 0 02/2000 2000

1119 PE Schiphol-Rijk / Amsterdam Boeing Avenue 31 C 100 0 0 0 0 0 0 03/1998 1998

1101 CN Amsterdam Herikerbergweg 2–36 / 145–179 C/H 100 0 0 0 0 0 0 12/2005 2004

Austria

1030 Vienna Rennweg 46–50 C (under con.) na na na na na na na 06/1997 1989

Spain

41500 Alcalá de Guadaira (Seville) Los Alcores C/P 0 95 0 0 0 5 0 11/2003 2003

03802 Alcoy Calle Alzamora 44 C 0 63 1 0 0 36 0 12/2003 2003

16004 Cuenca Avenida del Mediterraneo C/P 0 80 0 0 0 20 0 12/2002 2002

II. DIRECTLY HELD PROPERTIES IN COUNTRIES WITH OTHER CURRENCIES

USA

City

60601 Chicago 150 North Michigan Avenue C 94 3 3 0 0 0 0 05/1999 1984

10577 Harrison 100 Manhattanville Road C 100 0 0 0 0 0 0 03/2000 1986

20171 Herndon 13241 Woodland Park Road C 100 0 0 0 0 0 0 03/2000 2000

10016 New York 2 Park Avenue C 93 6 1 0 0 0 0 10/2003 1927/1989

94104 San Francisco 225 Bush Street C 92 5 3 0 0 0 0 04/2005 1922/2000

42 SEB ImmoInvest

Street

Type of

property

Office

Retail/

catering

Industry

(Warehousing, halls)

Hotel

Residential

Leisure

Miscellaneous

Acquisition date

Year built/

renovated 1)


Area 2) in m 2 Features Property data

Area of land

in m2 Commercial

Residential

District heating

Air conditioning/

auxiliary cooling

Goods lift

Passenger lift

Sprinkler system

Hot water (central/

decentralised)

Central heating

Property category

3,973 10,200 Office high Central business district (CBD) 6 119

3,559 11,481 Office high Non-central office centre 7 196

3,674 19,287 Office high Other city centre locations 1 321

2,287 9,179 Office very high Central business district (CBD) 20 145

7) 8,911 Office high Non-central office centre 2 136

7) 9,312 Office high Non-central office centre 3 147

7) 9,695 Office high Non-central office centre 3 65

9,150 14,043 Office high Non-central office centre 3 151

5,230 7,207 Office high Non-central office centre 1 72

9,000 6,152 Office high Central business district (CBD) 6 0

2,687 5,727 Office high Non-central office centre 1 58

6,103 25,477 Office high Central business district (CBD) 7 128

79,657 51,660 Office medium Non-central office centre 2 1.304

103,645 17,728 Retail high Solo location (shopping centre) 1 1.545

223 1,505 Office high Central business district (CBD) 1 0

2,271 6,515 Office high Non-central office centre 4 136

(6/10) of 18,697 5) 18,389 Retail high Retail park 19 514

4,965 6,153 Office very high Non-central office centre 3 122

4,825 9,256 Office medium Other city centre locations 1 33

660 2,389 Office high Central business district (CBD) 1 17

7.800 12,458 Office high Commercial estate 1 256

1,758 3,574 Office high Non-central office centre 1 84

6,532 12,372 Office high Non-central office centre 1 283

2,517 2,912 Office high Non-central office centre 1 75

5,246 23,859 Office high Non-central office centre 1 220

5,665 na na Office medium Other city centre locations na na

25,098 5) 12,459 Retail high Solo location (shopping centre) 71 1.800

7,046 16,172 Retail high City centre (1a) 42 675

27,560 5) 16,248 Retail high Solo location (shopping centre) 52 1.131

1,930 58,699 Office very high Central business district (CBD) 45 0

141,687 25,953 Office high Non-central office centre 14 936

22,568 12,254 Office high Non-central office centre 14 478

3,763 90,536 Office high Central business district (CBD) 36 43

3,559 51,777 Office high Central business district (CBD) 33 110

Type of property:

C = Commercial property

H = Heritable building right

P = Partial ownership

U = Undeveloped property

1) The last year in which major renovations, extensions,

or modernisation took place

2) The area corresponds to the leased area at the reporting date

3) 2

thereof heritable building right: 12,666 m

4) 2

thereof heritable building right: 18,226 m

5) Partial ownership

6) Heritable building right in favour of the real estate company

Chrysalis S.A., Brussels

7) Volume ownership

Property quality

Location category

* In contrast to the predominant types

of use by area, a corresponding classification

was made within the standardised

construction costs category.

Number of tenants

Number of car

parking spaces

() Only completed parts can be

disclosed at present.

The size of the property corresponds

to the information provided

in the expert opinion.

Annual Report as of 31 March 2006 43


Property Record as of 31 March 2006

Location of property Type of use (as a % of rental space)

Company/

legal form

44 SEB ImmoInvest

Registered

office of real

estate company

Type of

property

Office

Retail/

catering

Industry

(Warehousing, halls)

III. PROPERTIES HELD VIA REAL ESTATE COMPANIES IN COUNTRIES WITH THE EURO

Ringcenter S.A. 1040 Brussels, Belgium, 1050 Brussels, C 97 0 3 0 0 0 0

Capital: EUR 17,046,368 70–74 Rue de la Loi 522 Avenue Louise

Shareholder loans: EUR 30,000,000

Equity interest held: 100.00000%

Chrysalis Invest S.A. 1000 Brussels, Belgium, 1050 Brussels, C/H 99 0 1 0 0 0 0

Capital: EUR 1,615,894 34 Rue de la Loi 522 Avenue Louise

Shareholder loans: EUR 4,983,833

Equity interest held: 99.99969%

Altair Issy SAS 92130 Issy-les-Moulineaux, France, 75008 Paris, C 85 0 1 0 0 0 14

Capital: EUR 8,906,759 65 Rue de Camille Desmoulins 112 Avenue Kléber

Shareholder loans: EUR 12,645,000

Beteiligungsquote: 100.00000%

SEB ImmoInvest Prélude S.A.S. 92100 Boulogne, 27/27ter France, 75008 Paris, C na na na na na na na

Capital: EUR 24,192,221 Avenue du General Leclerc/ 112 Avenue Kléber (under

Shareholder loans: EUR 15,911,817 2–4 Rue Herault con.)

Equity interest held: 100.00000%

Megalò S.R.L. 66013 Chieti Scalo, Italy, 20123 Milan, C 0 67 20 0 0 13 0

Capital: EUR 5,434,300 Centro Commerciale Megalò Via Gabrio Casati 1

Shareholder loans: EUR 60,000,000

Equity interest held: 100.00000%

IV. PROPERTIES HELD VIA REAL ESTATE COMPANIES IN COUNTRIES WITH OTHER CURRENCIES

SEB ImmoInvest 41756 Gothenburg, Sweden, 41120 Gothenburg, C 94 3 3 0 0 0 0

Lindholmen Science Park AB Lindholmspiren 9 c/o Aberdeen Property Investors

Capital: EUR 1,160,362 Nordic AB, Hivitfeldtsgatan 15

Shareholder loans: EUR 14,529,771

Equity interest held: 100.00000%

One Park Fee LP 10016 New York, USA, 10016 New York, 1 Park Avenue C 87 5 8 0 0 0 0

Capital: EUR 56,299,600 1 Park Avenue

Shareholder loans: EUR 0.00

Equity interest held: 75.00000% (nom.)

SEB Ingatlankezelési Kft 1075 Budapest, Hungary, 1024 Budapest, C 93 2 5 0 0 0 0

Capital: EUR 5,287,339 Wesselenyi Utca 16 Buday László út 12.I.emelet

Shareholder loans: EUR 10,600,000

Equity interest held: 99.98575%

SEB Immobilia Kft 1065 Budapest, Hungary, 1024 Budapest, C 87 11 1 0 0 0 1

Capital: EUR 3,010,319 Nagymezö Utca 46–48 Buday László út 12.I.emelet

Shareholder loans: EUR 4,715,346

Equity interest held: 99.97191%

Chesterbrook Partners LP 19087 Wayne, USA, 19046 Jenkintown,

Capital: EUR 56,742,967 I. 600–701 Lee Road,

165 Township Line Road C 99 0 1 0 0 0 0

Shareholder loans: EUR 0.00 II. 725–965 Chesterbrook Boulevard,

C 100 0 0 0 0 0 0

Equity interest held: 89.40000% III.1300–1400 Morris Drive

C 99 1 0 0 0 0 0

Glenhardie Partners LP 19087 Wayne, USA, 19046 Jenkintown, C 100 0 0 0 0 0 0

Capital: EUR 9,958,055 1255–1285 Drummers Lane 165 Township Line Road

Shareholder loans: EUR 0.00

Equity interest held: 89.40000%

Chesterbrook 11 Land Owner LP 19087 Wayne, USA, 19046 Jenkintown, U na na na na na na na

Capital: EUR 1,466,162 Chesterbrook Parcel 11 165 Township Line Road

Shareholder loans: EUR 0.00

Equity interest held: 89.40000%

Hotel

Residential

Leisure

Miscellaneous


Acquisition date

Year built/

renovated 1)

Area 2) in m 2 Features Property data

Area of land

in m2 Commercial

Residential

District heating

Air conditioning/

auxiliary cooling

Goods lift

Passenger lift

Sprinkler system

03/2005 2004 3,948 19,625 Office high Central business district na 108

(CBD)

12/2001 2001 875 6,853 Office high Central business district 2 62

(CBD)

12/2002 2002 5,186 21,890 Office high Non-central office centre 5 408

07/2005 na 2,719 na na na na Other city centre locations na na

12/2005 2005 134,000 48,620 Retail high Solo location 97 2.800

(shopping centre)

06/2004 2003 2,511 11,348 Office high Non-central office centre 3 20

03/2005 1922/1996 3,135 64,041 Office high Central business district 21 11

(CBD)

12/1999 1910/1999 5,642 16,113 Office high Central business district 16 258

(CBD)

05/2002 1998 1,151 6,745 Office high Central business district 7 107

(CBD)

03/2006 1982/1988 96,544 29,149 Office high Non-central office centre 26 1,089

03/2006 1986/1992 169,692 38,051 Office high Non-central office centre 10 1,153

03/2006 1981/1987 81,185 19,899 Office high Non-central office centre 9 1,187

03/2006 1979/1985 69,326 21,146 Office high Non-central office centre 29 821

03/2006 na 18,089 na na na na na na na na na na na Non-central office centre na na

Type of property:

C = Commercial property

H = Heritable building right

P = Partial ownership

U = Undeveloped property

Hot water (central/

decentralised)

1) The last year in which major renovations, extensions,

or modernisation took place

2) The area corresponds to the leased area at the reporting date

3) 2

thereof heritable building right: 12,666 m

4) 2

thereof heritable building right: 18,226 m

5) Partial ownership

6) Heritable building right in favour of the real estate company

Chrysalis S.A., Brussels

7) Volume ownership

Central heating

Property category

Property quality

Location category

* In contrast to the predominant types

of use by area, a corresponding classification

was made within the standardised

construction costs category.

Number of tenants

Number of car

parking spaces

() Only completed parts can be

disclosed at present.

The size of the property corresponds

to the information provided

in the expert opinion.

Annual Report as of 31 March 2006 45


Property quality – standard of appointments according to standardised construction costs 2000

Type of use Part of building Skeleton/framed/

framework structure

Solid construction Windows Roofs Sanitary installations

Office simple Simple walls, wooden and sheet Brickwork with plaster or Wood, single glazing Corrugated fibre cement/ Small number of

metal lining, fibre cement siding combined bedding, pointing and paint sheet metal roofing, basic toilet facilities,

bitumen/plastic film seal surface-mounted fittings

medium Lightweight concrete walls with Thermal insulation plaster, thermal insula- Wood, plastic, Concrete roof tiles, Adequate number

thermal insulation, concrete sandwich tion composite system, exposed brickwork insulation glazing medium thermal of toilet facilities,

elements, 12-25 cm infill, with combined bedding, pointing and insulation standard flush-mounted fittings

surface-mounted fittings paint, medium thermal insulation standard

high High-density concrete plates, Faced brickwork, metal siding, Aluminium, shutters, Clay roof tiles, slate/ Good quality

faced brickwork, clinker, curtain wall, high thermal standard solar shading system, metal covering, high toilet fittings

up to 30 cm infill thermal protection glazing thermal insulation standard

very high Glass siding, over 30 cm infill Natural stone Floor-to-ceiling glazing, Large number of skylights, Generous toilet facilities

large sliding panels, elaborate roof extensions with sanitary facilities,

electric shutters, and roof heightening, high standard

sound-proof glazing glass roof cut-outs

Retail simple Simple walls, wooden and sheet Brickwork with plaster or Wood, single glazing Corrugated fibre cement/ Small number of

metal lining, fibre cement siding combined bedding, pointing sheet metal roofing, basic toilet facilities,

and paint bitumen/plastic film seal surface-mounted fittings

medium Lightweight concrete walls with Thermal insulation plaster, thermal insula- Wood, plastic, Concrete roof tiles, Adequate number

thermal insulation, concrete tion composite system, exposed brickwork insulation glazing medium thermal of toilet facilities,

sandwich elements, 12-25 cm infill with combined bedding, pointing and

paint, medium thermal insulation standard

insulation standard flush-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 fittings

up to 30 cm infill thermal protection glazing insulation standard

Logistics simple Glass siding, over 30 cm infill Brickwork with plaster or Wood, single glazing Corrugated fibre cement/ Basic toilet facilities, small

combined bedding, pointing sheet metal roofing, number of showers,

and paint bitumen/plastic film seal surface-mounted fittings

medium Simple walls, wooden and Thermal insulation plaster, thermal insula- Wood, plastic, Concrete roof tiles, medium Adequate number of

sheet metal lining, tion composite system, exposed brickwork insulation glazing thermal insulation standard toilet facilities, several

fibre cement siding with combined bedding, pointing and showers, some surfacepaint,

medium thermal insulation standard mounted fittings

Overview: Market Values and Rents

The following pages contain additional information on

our properties relating to letting rates, market values,

expiring leases, long-term rental income determined by

experts (rental valuations) and forecast rental income for

individual properties in the coming year.

For reasons of data protection and protection from competition,

this data is not published for properties that are

occupied exclusively by fewer than five tenants, or for

which one tenant accounts for 75% of rental income.

The following data relates to the properties held directly

and indirectly by the Fund. In the case of properties held

via investment companies, rents and market values are

indicated in proportion to the respective equity interest

held. The individual values cannot be extrapolated to the

Fund assets as a whole.

Please read the following information in order to interpret

the data:

46 SEB ImmoInvest

Market value

The market value is determined by the price that would

be obtained within a short time in the normal course of

business in accordance with the legal situation and actual

characteristics, the other attributes and the location of the

property, disregarding unusual or personal factors. Valuation

is based on the income approach (Ertragswertverfahren),

in which a property's value is calculated on the

basis of the long-term rental income that it will generate.

The market value is determined at least once a year by a

committee of external, publicly certified and sworn experts.

Rental income (cash flow) during the financial year

Rental income during the financial year relates to the

contractually secured rent receivable for the respective

property, excluding flat fees for incidental expenses or

advance payments of incidental expenses. Extraordinary

income is also factored into the calculation of rental income.

Uncontested rent reductions as well as rent-free

periods are taken into consideration. The rental income


Interior wall covering Floor coverings Interior doors Heating Electric fittings Installations and

of wetrooms other fittings

Oil-based paintwork Wooden floorboards, needled felt, Panel framed doors, Individual stoves, electric One lighting outlet and 1-2 na

linoleum, PVC, wetrooms: PVC painted leaves and frames storage heating, boilers surfaced-mounted sockets

for hot water per room

Part-tiled walls (1.50 m) Carpet, PVC, tiles, linoleum, Plastic/wooden leaves, Central heating with 1-2 lighting outlets na

wetrooms: tiles steel frames radiators (gravity hot and 2-3 sockets per room,

water system) IT facilities

Floor-to-ceiling tiles Large tiles, parquet, cast stone, Leaves with high-quality Central heating/pumped heating Several lighting outlets na

wetrooms: large tiles, wood veneer, glass doors, system with flat radiators, and sockets per room, sill

coated special tiles wooden frames central water heating trunking with IT cabling

Natural stone, Natural stone, Solid construction, Underfloor heating, Elaborate fittings, na

elaborately laid elaborately laid, intruder protection, air conditioning and security facilities

wetrooms: natural stone suitable for use by the

disabled, automatic doors

other HVAC systems

Oil-based paintwork Wooden floorboards, na Individual stoves, electric Basic surface-mounted na

linoleum, PVC, storage heating, boilers for fittings

wetrooms: PVC hot water

Part-tiled walls (1.50 m) Coated screed, mastic asphalt, na Warm air heating units, Adequate flush-mounted na

wetrooms: tiles warm air heating units

connected to central

boiler system, district heating

fittings

Floor-to-ceiling tiles Tiles, wood block flooring, na Central/pumped heating Elaborate fittings, na

cast stone, wetrooms: large tiles system with flat radiators,

central water heating

security facilities

Oil-based paintwork Rough concrete, paint na Warm air heating with na Surface-mounted power

a direct-fired system and water outlets,

cooking facilities, sink

Part-tiled walls (1.50 m) Screed, mastic asphalt, na Central heating na Surface-mounted power

block paving without bedding and water outlets,

kitchenette

during the financial year therefore reflects the contractually

secured cash flow for the property in the financial year.

If a property is added to the portfolio in the course of the

period under review, rental income is reported for the

relevant proportionate period.

Forecast rental income for the coming financial year

Forecast rental income is calculated in the same way as the

rental income in the financial year. For expiring leases or

unlet space, assumptions relating to the period required to

relet the property as well as the letting conditions are

made according to the respective market situation.

Rental valuations (expert opinions) (at the reporting date)

Rental valuations according to expert opinions correspond

to the long-term gross profit determined by an external

expert that is used as a basis to calculate the income

obtainable. This net basic rent that can be generated from

a property in the long term if it is fully let therefore represents

the long-term achievable income from a property –

regardless of short-term fluctuations in demand. Premiums

or discounts that reflect the property’s current market

situation (such as vacancies or leases concluded at abovemarket

conditions) are deducted from or added to the

market value separately. For this reason, a rental valuation

based on an expert opinion may differ from the actual net

position. Rather, it represents a property’s long-term

earnings power according to current estimates.

Annual Report as of 31 March 2006 47


Overview: Market Values and Rents

Post code

City

48 SEB ImmoInvest

Street

I. DIRECTLY HELD PROPERTIES IN COUNTRIES WITH THE EURO

Germany

Letting rate (at the

reporting date) in % 1)

Expiring leases

in % 2) *

Rental income during

the financial year

in EUR thousand 3) *

Rental valuations

(expert opinions)

(at the reporting date)

in EUR thousand *

Market value

(expert opinion)

(at the reporting date)

in EUR million

Forecast rental

income for the next

financial year

in EUR thousand *

85609 Aschheim-Dornach Einsteinring 31–39 100.0 – – 3,087.3 47.25 – –

13357 Berlin Prinzenallee 89–90 68.7 0.0 679.4 873.0 12.70 680.8 5.3

12105 Berlin Alarichstr. 12–17 100.0 – – 2,554.8 47.50 – –

10117 Berlin Johannisstr. 20 100.0 – – 2,346.9 39.00 – –

10623 Berlin Steinplatz 2 100.0 – – 1,512.5 27.00 – –

10117 Berlin Kleine Kurstr. 15 na 5) na 5) na 5) na 5) na 5) na 5) na 5)

10785 Berlin Stauffenbergstr. 26 100.0 – – 10,326.3 178.00 – –

44789 Bochum Universitätsstr. 105 100.0 – – 624.7 9.00 – –

28201 Bremen Neuenlander Str. 117 100.0 – – 493.1 6.10 – –

64283 Darmstadt Wilhelminenstr. 1–3 99.9 – – 3,381.6 50.19 – –

63128 Dietzenbach Waldstr. 41a 100.0 – – 1,384.6 18.79 – –

45058 Duisburg Hansastr. 15 100.0 – – 3,311.8 53.00 – –

40211 Düsseldorf Couvenstr. 6–8 70.6 – – 353.3 5.53 – –

40227 Düsseldorf Kruppstr. 108 59.7 – – 1,014.2 15.66 – –

40470 Düsseldorf Münsterstr. 304–306 87.7 – – 3,457.6 43.70 – –

40237 Düsseldorf Grafenberger Allee 293 99.9 – – 1,853.6 30.20 – –

40227 Düsseldorf Moskauer Str. 25–27 100.0 0.0 3,392.3 3,392.1 54.45 3,395.6 6.2

45329 Essen Gladbecker Str. 431–435 47.3 9.6 275.7 657.2 8.54 295.9 3.2

45329 Essen Gladbecker Str. 425–427 58.7 8.1 297.3 498.4 6.62 261.9 4.5

45130 Essen Alfredstr. 57–65 44.9 17.9 318.0 791.8 11.50 416.7 2.8

45128 Essen Kruppstr. 16 100.0 – – 2,243.1 29.20 – –

73728 Esslingen Fleischmann-/Berliner-/Martin-Str. 99.9 0.4 4,172.5 4,192.5 64.44 4,172.5 6.5

60489 Frankfurt am Main Stützeläckerweg 12–14 79.4 – – 1,649.2 24.75 – –

60313 Frankfurt am Main Stiftstr. 30 29.4 – – 1,103.1 17.10 – –

60439 Frankfurt am Main Marie-Curie-Str. 24–28 100.0 – – 6,393.1 110.40 – –

60439 Frankfurt am Main Lurgiallee 3 100.0 – – 2,710.5 39.00 – –

60528 Frankfurt am Main Herriotstr. 4 100.0 – – 4,625.9 76.00 – –

60327 Frankfurt am Main Rotfeder-Ring 1–13 54.6 0.0 1,839.5 3,899.5 67.28 3,023.4 2.7

60528 Frankfurt am Main Hahnstr. 49 100.0 – – 3,332.8 54.99 – –

79115 Freiburg Lörracher Str. 16/16a 81.8 3.8 544.2 637.2 8.90 549.3 6.1

79098 Freiburg Bertoldstr. 48/Sedanstr. 7 99.5 – – 2,257.6 33.27 – –

82031 Grünwald Bavariafilmplatz 8/Luise-Ulrich-Str. 2–8 95.1 3.5 1,278.1 1,376.6 16.60 1,309.0 7.7

58095 Hagen Friedrich-Ebert-Platz 1–3 99.1 0.5 5,815.4 6,011.2 92.76 5,881.0 6.3

58095 Hagen Friedrich-Ebert-Platz 2 100.0 0.0 692.3 701.4 11.58 698.7 6.0

22145 Hamburg Bargkoppelweg 52–66a 85.9 12.5 1,797.9 2,187.5 25.57 1,891.2 7.0

20354 Hamburg ABC-Str. 19 100.0 – – 3,847.8 72.16 – –

22041 Hamburg Schlossstr. 8 98.9 5.7 2,401.4 2,412.3 37.10 2,399.9 6.5

22083 Hamburg Humboldtstr. 58–62 100.0 0.0 1,510.1 1,458.2 23.40 1,530.1 6.5

20354 Hamburg Gorch-Fock-Wall 3–7 100.0 – – 1,976.0 35.25 – –

30559 Hanover Hägenstr. 4 100.0 – – 949.0 11.00 – –

30659 Hanover Im Heidkampe 9–11 100.0 – – 999.0 14.62 – –

30179 Hanover Vahrenwalder Str. 315–315a 100.0 – – 2,349.6 33.10 – –

63150 Heusenstamm Borsigstr. 6 93.1 76.8 378.7 516.7 7.00 182.6 5.4

55743 Idar-Oberstein Nahe-Center 1–10 58.0 5.6 99.1 170.1 2.11 98.7 4.7

65451 Kelsterbach Am Grünen Weg 1–3 100.0 – – 2,924.3 42.95 – –

Property return in the

financial year in % 4) *


Post code

Germany

City

Street

Letting rate (at the

reporting date) in % 1)

Expiring leases

in % 2) *

Rental income during

the financial year

in EUR thousand 3) *

Rental valuations

(expert opinions)

(at the reporting date)

in EUR thousand *

Market value

(expert opinion)

(at the reporting date)

in EUR million

Forecast rental

income for the next

financial year

in EUR thousand *

50825 Cologne Oskar-Jäger-Str. 50 6.6 – – 1,649.1 22.95 – –

51373 Leverkusen Wiesdorfer Platz 82 100.0 – – 1,532.2 18.50 – –

59557 Lippstadt Planckstr. 1 100.0 – – 623.8 5.85 – –

67059 Ludwigshafen Ludwigsplatz 1 94.2 – – 587.2 9.92 – –

39104 Magdeburg Otto-von-Guericke-Str. 86a / Leiterstr. 12 35.1 4.2 200.1 422.6 5.90 151.2 3.4

68167 Mannheim Dudenstr. 46/57a na 5) na 5) na 5) na 5) na 5) na 5) na 5)

68161 Mannheim Kunststr., N7 88.2 0.0 1,765.4 2,126.8 33.10 1,849.1 5.3

45768 Marl Bergstr. 228 71.6 19.2 854.6 1,237.9 12.35 800.7 6.9

80339 Munich Westendstr. 160–162 / Barthstr. 24–26 77.8 – – 1,899.9 30.07 – –

63263 Neu-Isenburg Dornhofstr. 34 67.1 – – 823.3 12.70 – –

63263 Neu-Isenburg Dornhofstr. 36 100.0 – – 1,395.1 21.70 – –

41460 Neuss Hellersbergstr. 10a/10b 99.8 – – 1,179.3 17.82 – –

90431 Nuremberg Karl-Martell-Str. 60 100.0 – – 3,332.6 54.85 – –

61440 Oberursel Ludwig-Erhard-Str. 21 100.0 – – 970.3 14.90 – –

14482 Potsdam Großbeerenstr. 181–183 100.0 – – 687.0 10.80 – –

93059 Regensburg Donaustaufer Str. 168 100.0 – – 271.9 3.21 – –

21218 Seevetal Kirchstr. 26 100,0 0.0 261.8 279.5 3.71 271.6 7.1

85716 Unterschleissheim Edisonstr. 1 0.0 – – 635.1 8.40 – –

41748 Viersen Kränkelsweg 2–16 53.2 34.6 322.0 628.9 7.06 322.0 4.6

67547 Worms Mainzer Str. 16–18 84.1 – – 148.1 1.90 – –

Belgium

1040 Brussels 41 Avenue des Arts 7.6 – – 700.0 9.75 – –

1000 Brussels 306–310 Avenue Louise 74.7 0.0 609.0 878.1 11.00 652.5 5.5

1000 Brussels 139–141 Rue Royale 0.0 – – 944.7 9.80 – –

1130 Brussels 20 Avenue du Bourget 100.0 – – 1,336.8 15.62 – –

1000 Brussels 34 Rue de la Loi na 6) na 6) na 6) na 6) 5.44 na 6) na 6)

1831 Diegem / Brussels 3 Kennedylaan 73.0 – – 1,080.1 14.50 – –

1930 Zaventem / Brussels 9 Belgicastraat 19.5 – – 754.6 9.05 – –

France

92320 Chatillon / Paris 200 Rue de Paris/6 Rue Andre Gide 100.0 – – 5,347.0 72.60 – –

77380 Combs-la-Ville / Paris ZAC Parisud IV 100.0 0.0 137.7 1,887.7 22.10 1,661.2 na

59777 Lille Boulevard de Turin na 5) na 5) na 5) na 5) na 5) na 5) na 5)

69003 Lyon 26 Rue de la Villette 96.0 4.4 1,915.2 1,866.6 25.15 2,013.3 7.6

92190 Meudon / Paris 2 Rue de Paris 95.8 0.0 4,033.9 3,703.7 49.50 4,496.2 8.1

75783 Paris 28/32 Avenue Victor Hugo 99.9 71.5 5,389.3 5,193.4 84.50 5,421.7 6.4

75014 Paris 200–216 Rue Raymond Losserand 100.0 – – 4,974.2 61.00 – –

75013 Paris 99 Avenue de France 100.0 – – 4,958.3 82.25 – –

92981 Paris 33 Place Ronde 100.0 – – 4,276.3 73.10 – –

92981 Paris 32 Place Ronde 100.0 – – 3,797.5 61.60 – –

1) Based on the property’s estimated net rental for the year

2) The “Expiring leases” item comprises the proportion of leases that could

expire during the financial year following the period under review as a % of

the estimated net rental for the year.

3) Rental income during the financial year is the total of the net positions; zero

income is reported for vacant periods and contractually agreed rent-free

periods.

The individual values cannot be extrapolated to the Fund result as a whole.

* This column was not included in the audit or the Auditors’ Report.

Property return in the

financial year in % 4) *

4) The return for properties acquired during the financial year was calculated for

the relevant proportionate period. This allows the properties to be compared

with each other. The property return is calculated by dividing the rental

income during the financial year by the market value.

5) These properties are currently under construction. No information on market

values and rental valuations can therefore be published.

6) Heritable building right

Annual Report as of 31 March 2006 49


Overview: Market Values and Rents

Post code

Italy

City

50 SEB ImmoInvest

Street

Letting rate (at the

reporting date) in % 1)

Expiring leases

in % 2) *

Rental income during

the financial year

in EUR thousand 3) *

Rental valuations

(expert opinions)

(at the reporting date)

in EUR thousand *

Market value

(expert opinion)

(at the reporting date)

in EUR million

Forecast rental

income for the next

financial year

in EUR thousand *

20080 Basiglio / Milan Via Ludovico il Moro 6 100.0 – – 2,216.8 32.47 – –

20080 Basiglio / Milan Via Ludovico il Moro 6 100.0 – – 1,133.8 16.68 – –

20099 Milan Via Ercole Marelli 303 85.1 – – 968.6 13.10 – –

20123 Milan Via Dante 15 100.0 – – 1,629.7 27.53 – –

20123 Milan Via della Chiusa 2 100.0 11.0 8,831.3 8,856.8 144.70 8,687.6 6.1

00142 Rome Via Laurentina 449 / Via del Serafico 49–61 100.0 – – 11,817.7 159.87 – –

33010 Tavagnacco / Udine Via Nazionale 127 100.0 – – 4,601.4 65.95 – –

Luxemburg

2930 Luxemburg 16a Avenue de la Liberté 100.0 – – 269.1 3.89 – –

1855 Luxemburg 46a Boulevard J.-F.-Kennedy 81.5 – – 2,394.0 36.13 – –

Netherlands

1823 CJ Alkmaar Noorderkade 100–199 94.3 12.6 3,237.7 3,189,3 37.10 3,232.4 8.7

1183 AS Amstelveen / Amsterdam Prof.W.H.Keesomlaan 4 100.0 – – 1,347.9 18.80 – –

1101 CN Amsterdam Herikerbergweg 2–36/145–179 100.0 – – 5,354.3 98.80 – –

2514 AR The Hague Kanonstraat 4 100.0 – – 465.8 6.12 – –

2521 HD The Hague Verheeskade 25 100.0 – – 1,683.9 21.85 – –

2596 JM The Hague Oostduinlaan 2 100.0 – – 1,105.0 14.06 – –

1119 PE Schiphol-Rijk / Amsterdam Boeing Avenue 31 100.0 – – 541.5 7.18 – –

1119 PE Schiphol-Rijk / Amsterdam Boeing Avenue 101 100.0 – – 582.9 7.74 – –

1119 PE Schiphol-Rijk / Amsterdam Boeing Avenue 53/99 100.0 – – 2,230.4 29.72 – –

Austria

1030 Vienna Rennweg 46–50 na 5) na 5) na 5) na 5) na 5) na 5) na 5)

Spain

41500 Alcalá de Guadaira (Seville) Los Alcores 100.0 0.4 2,329.9 2,664.6 35.40 2,329.9 6.6

03802 Alcoy Calle Alzamora 44 95.8 1.2 2,728.9 2,813.4 35.80 2,780.7 7.6

16004 Cuenca Avenida del Mediterraneo 100.0 26.9 2,673.8 2,709.1 36.00 2,594.3 7.4

II. DIRECTLY HELD PROPERTIES IN COUNTRIES WITH OTHER CURRENCIES

9) 10) USA

60601 Chicago 150 North Michigan Avenue 77.1 7.8 6,121.1 15,664.0 93.41 6,068.4 6.6

10577 Harrison 100 Manhattanville Road 98.2 16.2 3,932.3 5,580.9 44.22 3,333.4 8.9

20171 Herndon 13241 Woodland Park Road 100.0 – – 3,646.0 33.89 – –

10016 New York 2 Park Avenue 96.9 4.1 25,902.4 34,842.0 283.70 25,107.3 9.1

94104 San Francisco 225 Bush Street 94.3 3.8 15,253.7 15,637.0 166.98 15,275.0 9.2

III. PROPERTIES HELD VIA REAL ESTATE COMPANIES IN COUNTRIES WITH THE EURO

1000 Brussels 34 Rue de la Loi 100.0 – – 1,590.8 17.37 – –

1040 Brussels 70–74 Rue de la Loi 100.0 – – 4,576.7 70.20 – –

92100 Boulogne 27/27ter Avenue du General na 5) na 5) na 5) na 5) na 5) na 5) na 5)

Leclerc/2–4 Rue Herault

92130 Issy-les-Moulineaux 65 Rue de Camille Desmoulins 100.0 0.0 na 11) 9,706.3 153.00 10,123.6 6.8

66013 Chieti Scalo 7) Centro Commerciale Megalo 100.0 0.0 na 11) 9,589.7 126.10 8,927.1 8.8

Property return in the

financial year in % 4) *


Post code

City

Street

Letting rate (at the

reporting date) in % 1)

IV. - DIRECTLY HELD PROPERTIES IN COUNTRIES WITH OTHER CURRENCIES

Expiring leases

in % 2) *

Rental income during

the financial year

in EUR thousand 3) *

Rental valuations

(expert opinions)

(at the reporting date)

in EUR thousand *

Market value

(expert opinion)

(at the reporting date)

in EUR million

Forecast rental

income for the next

financial year

in EUR thousand *

41756 Gothenburg Lindholmspiren 9 100.0 – – 2,078.2 29.02 – –

1075 Budapest Wesselenyi Utca 16 88.2 7.1 na 11) 3,132.0 38.92 2,785.1 7.2

1065 Budapest Nagymezö Utca 46–48 95.9 0.0 na 11) 1,052.9 13.46 1,237.4 8.5

10016 New York 1 Park Avenue 99.8 6.0 na 11) 22,581.3 197.87 19,882.5 12.1

19087 Wayne 600–701 Lee Road 67.4 na 8) na 11) 6,349.0 44.87 na 8) na 8)

19087 Wayne 725–965 Chesterbrook Boulevard 95.7 na 8) na 11) 8,464.4 82.36 na 8) na 8)

19087 Wayne 1300–1400 Morris Drive 83.0 na 8) na 11) 4,421.9 38.75 na 8) na 8)

19087 Wayne 1255–1285 Drummers Lane 52.8 na 8) na 11) 4,515.8 33.77 na 8) na 8)

19087 Wayne Chesterbrook Parcel 11 na 6) na 6) na 11) na 6) 1.48 na 6) na 6)

1) Based on the property’s estimated net rental for the year

2) The "Expiring leases" item comprises the proportion of leases that could expire

during the financial year following the period under review as a % of the

estimated net rental for the year.

3) Rental income during the financial year is the total of the target positions; zero

income is reported for vacant periods and contractually agreed rent-free

periods.

4) The return for properties acquired during the financial year was calculated for

the relevant proportionate period. This allows the properties to be compared

with each other. The property return is calculated by dividing the rental

income during the financial year by the market value.

5) These properties are currently under construction. No information on market

values and rental valuations can therefore be published.

6) Heritable building right

The individual values cannot be extrapolated to the Fund result as a whole.

* This column was not included in the audit or the Auditors’ Report.

Property return in the

financial year in % 4) *

7) The property was acquired during the financial year. The rental income only

relates to the period since it was added to the Fund.

8) No meaningful figures can be calculated for the financial year because the

property was only added in March 2006.

9) In the case of properties outside the eurozone, exchange rate fluctuations may

cause deviations between rental income during the financial year, forecast

rental income and rental valuations according to expert opinions.

10) In the USA, flat fees for incidental expenses and advance payments of incidental

expenses are factored into the calculation of the rental valuations according

to expert opinions (gross profit), as is customary practice in that country.

11) Rental income from companies is consolidated and reported in income from

equity interests in the statement of income and expenditure.

Annual Report as of 31 March 2006 51


Money Market Instruments, Securities and

Hedging Instruments Portfolio as of 31 March 2006

Money market instruments Purchases Sales/disposals Portfolio Market value * Proportion

(nom.) EUR thou. (nom.) EUR thou. (nom.) EUR thou. EUR thou. of Fund assets

from 1 Apr. 2005 from 1 Apr. 2005 in %

to 31 Mar. 2006 to 31 Mar. 2006

Credit institutions (abroad) 128,000 83,000 138,000 137,856 2.868

of which foreign issuers 128,000 83,000 138,000 137,856 2.868

Credit institutions (Germany) 40,000 148,000 40,000 39,905 0.830

of which foreign issuers 0 0 0 0 0.000

Other 50,000 994 53,613 53,608 1.115

of which foreign issuers 50,000 994 53,613 53,608 1.115

Total money market instruments 218,000 231,994 231,613 231,369 4.814

Securities Purchases Sales/disposals Portfolio Market value * Proportion of

(nom.) EUR thou. (nom.) EUR thou. (nom.) EUR thou. EUR thou. Fund assets

from 1 Apr. 2005 from 1 Apr. 2005 in %

to 31 Mar. 2006 to 31 Mar. 2006

Officially traded securities 788,500 1,435,500 222,500 214,121 4.455

Total securities

Total securities and money market instruments

not eligible as collateral at the ECB

or Deutsche Bundesbank Eurosystem for

788,500 1,435,500 222,500 214,121 4.455

monetary policy operations 14,000 0 14,000 13,975 0.291

Hedging transactions Purchases equiv. Sales equiv. Sales volume

(EUR thou.) (EUR thou.) nominal currency

from 1 Apr. 2005 from 1 Apr. 2005 from 1 Apr. 2005

a) Purchases and sales of financial instruments

completed during the period under review

and no longer appearing

in the statement of assets

to 31 Mar. 2006 to 31 Mar. 2006 to 31 Mar. 2006

USD 394,138 92,134 112,000

SEK 42,139 23,783 220,000

Total 436,277 115,917

Euro Bobl futures 395,716 394,153

Euro Bund futures 3,700,760 3,662,780

Total 4,096,476 4,056,933

Market value Market value Preliminary Sales

(sales) (rept. date) * result nom.

EUR thou. in EUR thou. EUR thou. currencies

b) Open items

USD 409,203 406,082 3,121 495,200

SEK 24,944 24,944 0 233,400

Total 434,147 431,026 3,121

Euro Bobl futures 33,150 33,021 129

Euro Bund futures 141,752 140,604 1,148

Total 174,902 173,625 1,277

Market value Market value Preliminary Sales

(sales) (purchases) result nom.

EUR thou. EUR thou. EUR thou. currencies

c) Concluded transactions

not yet due

USD 155,264 153,300 1,964 187,500

SEK 26,565 27,212 – 647 250,000

Total 181,829 180,512 1,317

* The money market instruments, securities, forward exchange transactions and futures transactions were valued at their market price or forward rate

on 31 March 2006 or at their last known price.

52 SEB ImmoInvest


Statement of Income and Expenditure

for the period from 1 April 2005 to 31 March 2006

I. Income

EUR EUR EUR

1. Income from properties (of which in foreign currency 54,477,023.21) 256,032,343.04

2. Income from equity interests in real estate companies

3. Income from liquidity portfolio

(of which in foreign currency 1,579,960.71) 7,755,297.71

3.1 Income from bank deposits (of which in foreign currency 130,965.26) 18,106,391.92

3.2 Income from money market instruments (of which in foreign currency 0.00) 6,684,145.27

3.3 Income from securities (of which in foreign currency 0.00) 23,239,307.41

4. Development project interest 2,422,554.55

5. Other income (of which in foreign currency 1,748,326.22) 18,802,163.43

Total income

II. Expenditure

1. Management costs

333,042,203.33

1.1 Operating costs (of which in foreign currency 15,478,198.18) 28,023,441.42

1.2 Maintenance costs (of which in foreign currency 8,382,248.94) 20,214,688.30

1.3 Property management costs (of which in foreign currency 4,492,231.84) 7,190,946.11

2. Ground rent, life annuities and temporary annuities (of which in foreign currency 0.00) 469,060.53

3. Interest expenses (of which in foreign currency 19,442,838.96) 35,566,472.00

4. Taxes incurred abroad

5. Fund management costs

11,648,051.87

5.1 Remuneration of Fund management 25,884,512.42

5.2 Custodian bank fee 1,035,381.81

5.3 Remuneration of experts

5.4 Other expenditure in accordance

666,730.47

with section 13 BVB (Special Fund Rules) 3,735,071.45

Total expenditure 134,434,356.38

III. Equalisation paid –20,013,644.44

Ordinary net income 178,594,202.51

Total Expense Ratio (TER) 0.60%

Calculation of the distribution

Total per unit

(EUR) (EUR)

Ordinary net income 178,594,202.51 2.12

Realised profits from liquidity portfolio 14,602,107.17 0.17

Carried forward from previous year 51,756,005.71 0.61

Surplus retained in accordance with section 14 (2) of the BVB (Special Fund Rules) – 2,000,000.00 – 0.02

Amount available for distribution 242,952,315.39 2.88

Carried forward to new account – 48,907,525.39 – 0.58

Total distribution 194,044,790.00 2.30

Annual Report as of 31 March 2006 53


Disclosures on the Statement of Income and Expenditure

Income

Income from properties comprises the rental income from

the Fund’s German and foreign properties. It increased

year-on-year by EUR 36.9 million to EUR 256.0 million.

EUR 22.8 million of this increase is due to the total of four

directly-held properties added to the Fund in the year

under review, and one property that was completed in

the year under review. A total of EUR 93.4 million of the

income from properties is attributable to foreign properties

in the eurozone, and EUR 54.5 million to properties

outside the eurozone.

Income from equity interests in real estate companies

includes the distributions from real estate companies in

France, Sweden, Hungary and the USA attributable to

the Fund for the period under review.

Income from the liquidity portfolio includes interest income

from time and demand deposits of EUR 18.1 million

(previous year: EUR 21.8 million), as well as income from

money market instruments of EUR 6.7 million and income

from interest-bearing securities of EUR 23.2 million, all of

which was generated from securities listed in euros.

Income from development project interest is calculatory

standard market interest for the Fund's equity tied up

during construction. Development project interest in the

amount of EUR 2.4 million was calculated in the year

under review on two properties under construction. One

property was completed during the period under review.

The Other income item primarily comprises the reversal of

provisions of EUR 11.1 million, of which EUR 4.6 million

relates to properties in Germany, and interest income from

shareholder loans to the real estate companies amounting

to EUR 4.9 million.

54 SEB ImmoInvest

Expenditure

Management costs include operating costs (EUR 28.0 million),

maintenance costs (EUR 20.2 million) and property

management costs which cannot be charged to the tenants

(EUR 7.2 million). Operating costs include write-downs and

valuation allowances on rent receivables (EUR 3.6 million).

The increase in management costs of EUR 7.6 million as

against the previous year is due to the growth in operating

costs of EUR 7.6 million and in property management costs

of EUR 4.3 million. In contrast, maintenance costs fell by

EUR 4.3 million year-on-year.

The ground rent disclosed relates to the properties in

Lippstadt, Hamburg-Rahlstedt and Munich-Grünwald.

Interest expenses result primarily from the external

financing of property acquisitions abroad. Interest expenses

payable on loans taken out in foreign currencies amount

to EUR 19.4 million and relate exclusively to the USA.

The Fund incurred expenses and recognised provisions

amounting to EUR 11.6 million for the payment of income

taxes incurred abroad. This tax expense relates primarily to

the Netherlands (EUR 3.7 million), France (EUR 3.6 million),

the USA (EUR 1.9 million), and Italy (EUR 1.5 million).

As provisions for taxes on capital gains are not based on

concrete intentions to make disposals, they are taken

directly from Fund assets.

The Fund management costs item includes the remuneration

of the Fund management and the custodian bank fee,

the remuneration of experts, and other expenditure in

accordance with section 13 BVB (Special Fund Rules).


Remuneration of the Fund management amounts to

EUR 25.9 million, or 0.50% p.a. of the average Fund

assets; in accordance with Fund rules, remuneration of up

to 1% of the average Fund assets may be charged. The investment

company pays regular (usually annual) brokerage

fees (trail commission) for brokers such as credit institutions

from the management fee it has received.

In accordance with section 13 (3) of the BVB, the custodian

bank receives a custodian bank fee of 0.005% of Fund

assets at the end of every quarter.

The members of the Expert Committee receive remuneration

for the statutory annual valuations. The costs of the

initial valuation opinion are recorded as acquisition costs

and are therefore not shown in the statement of income

and expenditure.

Other expenditure in accordance with section 13 BVB

comprises the costs of the Annual Report, the redemption

of the distribution coupons and the audit of the Fund,

consultancy and translation costs, as well as bank fees and

expenses. The Company also received construction and

purchase fees amounting to EUR 5.0 million in accordance

with section 13 (2) of the BVB, which are reported as part

of the properties’ acquisition costs, and not shown in the

statement of income and expenditure.

Equalisation paid

The Equalisation paid item is the balance of expenditure

and income paid by the unit buyer as part of the issuing

price in order to compensate for accrued income, or

recompensed by the Fund as part of the redemption price

when the unit is redeemed. EUR 12.4 million relates to

equalisation for domestic income, and EUR 7.6 million to

equalisation for income generated abroad.

Ordinary net income

Ordinary net income fell by EUR 19.1 million to

EUR 178.6 million.

Total Expense Ratio (TER)

The Total Expense Ratio shows the impact of costs on

Fund assets. It takes into account management and

custodian bank fees, the costs of the Expert Committee

and other costs in accordance with section 13 of the BVB

(Special Fund Rules), with the exception of transaction

costs. The TER expresses the total amount of these costs as

a percentage of average Fund assets within a financial

year, thus providing results that comply with international

cost transparency standards. This calculation is in line

with the BVI’s recommended method.

SEB ImmoInvest’s TER is 0.60%.

Notes on the calculation of distribution

EUR 2.0 million was retained from the ordinary net income

(EUR 178.6 million) plus realised profits from the liquidity

portfolio (EUR 14.6 million) and the balance carried forward

from the previous year (EUR 51.8 million) to offset

impairment losses in accordance with section 14 (2) of the

BVB (Special Fund Rules). A further EUR 48.9 million will

be carried forward to new account. If this carryforward to

new account is employed for distribution in future, such

distribution will be tax-free. The remaining surplus of

EUR 194.0 million (previous year: EUR 207.4 million) will

be distributed at the rate of EUR 2.30 (previous year:

EUR 2.30) per unit for the 84,367,300 units in circulation.

Annual Report as of 31 March 2006 55


Auditors’ Report

In accordance with section 44 (5) of the Investmentgesetz

(InvG – German Investment Act), we have audited the

Annual Report, together with the bookkeeping system,

of the SEB ImmoInvest Fund for the financial year from

1 April 2005 to 31 March 2006. The maintenance of the

books and records and the preparation of the Annual

Report in compliance with the provisions 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)

of the InvG and the generally accepted standards for the

audit of financial statements promulgated by the Institut

der Wirtschaftsprüfer (IDW). Those standards require that

we plan and perform the audit such that misstatements

materially affecting the Annual Report and the correctness

of the bookkeeping system are detected with reasonable

assurance. Knowledge of the management of the Fund

and evaluations of possible misstatements are taken into

account in the determination of audit procedures.

56 SEB ImmoInvest

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 assessing the accounting principles used for 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, 8 June 2006

(Handrick) (ppa. Sundermann)

Auditor Auditor


Tax Information for Investors

The distribution for financial year 2005/2006 as of 3 July 2006 amounts to EUR 2.30 per unit.

Tax treatment of the distribution will be as follows:

Tax treatment of the distribution per unit

Private assets Units held as Units held as

business assets business assets

(income tax payers) (corporation tax payers)

EUR EUR EUR

Distribution 2.3000 2.3000 2.3000

of which tax-free: 1.2616 1.1044 1.1373

Tax-free earnings in accordance with double taxation agreements 1) 0.3278 0.3278 0.3278

Dividends 2) 0.0329 0.0329 0.0658

Capital gains on securities 0.1572 0.0000 0.0000

Calculatory development project interest 0.0288 0.0288 0.0288

Negative retained income 3) 0.6795 0.6795 0.6795

Tax-free amount carried forward from previous year 0.2922 0.2867 0.2867

Taxable amount carried forward to new account – 0.2568 – 0.2513 – 0.2513

of which taxable: 1.0384 1.1956 1.1627

Less dividends (Halbeinkünfteverfahren) 0.0329

Basis of calculation for savings tax 4) 1.0055

Savings tax – units held by custodian banks (30%) 5) 0.3017

Savings tax – self-custody (35%) 5) 0.3519

1) Income from abroad which is not taxable again in Germany due to double taxation agreements (exemption method) is subject to the Progressionsvorbehalt (progression

clause). This means that tax-free income is taken into account in determining the individual tax rate to be applied to the taxable income of the respective

investor. However, as income from abroad is only subject to the progression clause to the extent that it would have accrued to the foreign properties after adjustment

for depreciation permitted under German tax law, domestic investors must disclose this income in their tax returns (Annexe AUS) broken down by country

(Belgium: EUR 0.0090 per unit, France: EUR 0.1193 per unit, United Kingdom: EUR 0.0001 per unit, Italy: EUR 0.1709 per unit, Luxemburg: EUR 0.0133 per unit, the

Netherlands: EUR 0.0045 per unit, Austria: EUR 0.0046 per unit, USA: EUR 0.0061 per unit) to enable calculation of the individual tax rate.

2) Dividends from distributions by foreign real estate companies. These are taxable in Germany as part of the Halbeinkünfteverfahren (German half-income system),

but they are not subject to the withholding tax on dividend income levied on distributions by domestic corporations at the time of distribution of the Fund income.

3) Tax-free difference between the statement of income and expenditure under investment law and the tax accounts

4) Calculated on the basis of the results for private investors

5) Plus the solidarity surcharge of 5.5%

Taxation at Fund level

Under German law, real estate funds are exempted from all

income and asset-based taxes. Income is taxed at the level of

the investors.

Taxation at private investor level

If the units are held as private assets, Fund income is treated

as investment income for tax purposes. This income is

taxable in the year it is received and must be disclosed in

Annexe KAP of the investor’s income tax return as investment

income generated in Germany, as far as it, when

taken together with other investment income, exceeds the

annual savings allowance (including the lump-sum incomerelated

expenses allowance) of EUR 1,421 (for single persons

or married couples assessed separately) or EUR 2,842 (for

married couples assessed jointly).

If income consists wholly or partly of income from

employment from which tax was deducted, an income tax

assessment is only carried out when the income subject to

income tax that is not subject to wage tax withholding

(e.g. the taxable portion of the Fund distribution), or

Annual Report as of 31 March 2006 57


Tax Information for Investors

income subject to the progression clause (e.g. the proportionate

tax-free income on properties outside Germany)

exceeds EUR 410 in each case.

Only half of domestic and foreign dividends, including

those paid by the real estate corporations, that are distributed

or retained by the Fund are taxable for investors

(Halbeinkünfteverfahren – German half-income system).

Rental, interest and dividend income in particular that

is not distributed is deemed to have accrued to the

investors. Fund assets include properties located outside

Germany. As a rule, rental income from such properties

accrues to investors in Germany tax-free due to existing

double taxation agreements. However, it is subject to the

progression clause; in other words, tax-free income must

be taken into account when ascertaining the individual

tax rate applicable to the taxable income of the respective

investor. Such tax-free income subject to the progression

clause must be disclosed in the tax return in Annexe AUS

broken down by country (Belgium: EUR 0.0090 per unit,

France: EUR 0.1193 per unit, United Kingdom: EUR 0.0001

per unit, Italy: EUR 0.1709 per unit, Luxemburg:

EUR 0.0133 per unit, the Netherlands: EUR 0.0045 per unit,

Austria: EUR 0.0046 per unit, USA: EUR 0.0061 per unit).

Gains from the sale of domestic and foreign real estate not

falling within the 10-year period that are generated at the

Fund level are always treated as tax-free for the investor.

Gains from the sale of domestic properties within the 10year

period that are generated at Fund level are always

treated as taxable for the investor. This is valid regardless

of whether they are distributed or retained.

Gains from the sale of foreign properties within the 10year

period in respect of which Germany has waived taxation

in accordance with a double taxation agreement also

remain tax-free. Return of capital distributions (e.g. in the

form of development project interest) are not taxable.

Taxation at business investor level

Investors who hold their units as business assets realise

business income as a rule. Only half of domestic and foreign

dividends, including those paid by the real estate

58 SEB ImmoInvest

corporations, that are distributed or retained by the Fund

are taxable at the level of the investors subject to income

tax (half-income system). This income is tax-free as a rule

for investors subject to corporation tax (however, 5% of

dividends are considered as non-deductible business

expenses). An adjustment item must be recognised under

liabilities for tax purposes for the depreciation mentioned

in the table on page 62, letter g).

The adjustment item must be reversed when the units are

sold or redeemed. Dividends, interest and rent that are not

distributed are deemed to have accrued to the investor. An

asset-side adjustment item in the amount of the income

deemed to have accrued must be created for tax purposes.

This asset-side adjustment item must be reversed when the

units are sold or redeemed or when the retained amounts

are distributed.

Income that is tax-free in accordance with double-taxation

agreements and income subject to the half-income system

must be deducted from the taxable and accounting profit

during preparation of the income tax and corporation tax

returns (in the case of income subject to the half-income

system accruing to investors subject to income tax, only

50% of the amount is to be deducted).

Withholding tax on dividend income/savings tax

Taxable income is subject in principle to savings tax

(ZAST – Zinsabschlagsteuer). The custodian bank holding

the units must retain and remit to the tax authorities

30% of the portions of unit income subject to savings tax

on payment to private investors resident in Germany.

Counter transactions are subject to 35% savings tax. Nonresidents

for tax purposes receive the distribution without

the tax deduction if the units are held in custody at a

bank in Germany or abroad. The savings tax remitted is

certified for the investor, and must be disclosed in

Annexe KAP as imputable tax (withholding tax on dividend

income incurred in Germany) and is offset against

the income tax liability. Upon submission of a nonassessment

certificate or proof of non-resident status to

the custodian bank, the portions of unit income subject to

savings tax contained in the distribution will be exempted

from savings tax in their full amount; upon submission


of an exemption instruction they will be exempt in an

amount up to the savings allowance including the lumpsum

allowance for income-related expenses (EUR 1,421/

EUR 2,842). Domestic dividends are subject in their full

amount to withholding tax on dividend income of 20%

upon distribution or retention. Private investors are immediately

reimbursed the withholding tax on dividend

income, provided the units are held by the investment

company or another domestic bank and an exemption

instruction for a sufficient amount or a non-assessment

certificate has been submitted. For private investors, only

half of domestic dividends are counted towards the

exemption limit (half-income system). If an exemption

instruction or a non-assessment certificate is not submitted

in good time, investors can offset the retained withholding

tax on dividend income and the solidarity surcharge

against their personal income tax liability by

supplying a tax certificate from their custodian bank.

On the instructions of the fiscal authorities, the withholding

tax on dividend income applicable to individual

investors is calculated as follows: the portion of distribution

income subject to withholding tax on dividend

income is first multiplied by the number of units held

by the investor at the distribution date and 30% savings

tax charged on this amount. The same procedure applies

to withholding tax on dividend income. In this case, the

dividend portion attributable to the individual investor

is multiplied by 20% for the purposes of computing

withholding tax on dividend income. If units are held as

business assets, a waiver or a reimbursement of the savings

tax and a reimbursement of the withholding tax on

dividend income are only possible upon presentation of

a non-assessment certificate. In other cases, investors

receive a corresponding tax certificate.

Solidarity surcharge

The solidarity surcharge on income and corporation tax

amounts to 5.5%. Insofar as distributions from Fund

units are subject to deductions of withholding tax on

dividend income/savings tax, the retained withholding

tax on dividend income is taken as the basis of calculation

for the solidarity surcharge. The solidarity surcharge is

disclosed separately in the tax certificate and counts

towards the final solidarity surcharge to be ascertained

in the course of income or corporation tax assessment.

Excess solidarity surcharge payments are reimbursed.

Private disposals

If investment units in a real estate fund are sold by a

private investor within a year of purchase (taxable period),

any capital gains are taxable in principle as income from

private disposals, and must be disclosed in Annexe SO

of the investor’s income tax return. Capital gains realised

outside the taxable period are tax-free for private investors.

In calculating the capital gains, the acquisition

costs are to be reduced by the interim income at the time

of acquisition, and the disposal price by the interim income

at the time of disposal, so that interim income is

not taxed twice (see below). Capital gains are not subject

to the half-income system.

Taxation of interim income

Since 1 January 2005, interim income has again been subject

to taxation. Interim income consists of income contained

in the sale or redemption price for interest received

or accrued that has not yet been distributed or retained by

the Fund and is therefore not yet taxable for the investor

(comparable to accrued income on fixed-interest securities).

Interest income and interest claims generated by the Fund

are subject to income tax and withholding tax on dividend

income in the case of the redemption or sale of units by

German tax residents. Investment income tax on interim

income amounts to 30% if the units are held by custodian

banks, and 35% in the case of self-custody (plus 5.5% solidarity

surcharge on the withholding tax on dividend income

in each case). The withheld tax is an advance payment

on income tax and must be disclosed in Annexe KAP.

Interim income paid on the purchase of units can be

deducted as negative income for income tax purposes in

the year of payment. It is also recognised as reducing the

tax burden for the purposes of tax deduction. In addition,

no tax is deducted in the case of an exemption instruction

or submission of a non-assessment certificate. Here, too,

non-residents for tax purposes are exempt as a matter of

Annual Report as of 31 March 2006 59


Tax Information for Investors

principle from tax deduction. In calculating interim

income, the following are not recognised: rental and leasing

income, and income from the valuation and disposal

of properties. Interim income is computed every time the

unit value is determined and is published on each

valuation date. The interim income to be disclosed by the

investor in Annexe KAP of the income tax return is calculated

by multiplying the respective interim income per

unit by the number of units sold/redeemed. Interim

income may also be ascertained regularly from the

account and income statements issued by the banks.

Gains from real estate and shares

The regulations governing gains from real estate and

shares apply only to investors whose units are held as

business assets.

The Fund’s real estate gains consist of foreign rental

income that has not yet accrued or been deemed to have

accrued, and realised and unrealised changes in value of

foreign real estate belonging to the Fund, in respect of

which Germany has waived taxation in accordance with

a double taxation agreement. The investment company

publishes the Fund’s gains from real estate as a percentage

of the value of the investment unit.

Fund gains from shares comprise dividend income that

has not yet accrued or been deemed to have accrued to

the investor, including from real estate corporations, and

realised and unrealised gains and losses from equity

interests held by the Fund, especially in real estate

corporations. The investment company publishes the

Fund gains from shares each exchange trading day as a

percentage of the value of the investment unit.

On the date of purchase and sale of the units, as well as

on the reporting date, the investor must multiply the

published percentages by the respective redemption price

to calculate the absolute investor gains from real estate

and shares. The difference between the two figures

represents the investor’s gains from real estate and shares

for the proportionate holding period that are relevant for

tax purposes. Gains from the disposal of investment units

are fully tax-free for all business investors, provided they

60 SEB ImmoInvest

result from the absolute investor gains from real estate

for the proportionate holding period.

Gains from the disposal of investment units are fully taxfree

for investors who hold their units as business assets

and are taxed in accordance with the Körperschaftssteuergesetz

(KStG – Corporation Tax Act), provided they result

from the absolute investor gains from shares for the

proportionate holding period. However, 5% of these taxfree

gains are deemed to be non-deductible business

expenses. Half of the gains from the disposal of investment

units are tax-free for investors subject to income tax

holding their units as business assets provided they

result from the investor gains from shares for the

proportionate holding period.

Notice

Further explanations on the tax treatment of Fund income

can be found in the Notice regarding important tax regulations

for unit holders in the Sales Prospectus.

Tax liability in Austria

On 1 September 2003, the Immobilien Investmentfondsgesetz

(ImmoInvFG – Austrian Real Estate Investment Fund Act)

came into effect in Austria. This Act introduced a limited

tax liability in respect of the gains generated from Austrian

real estate by non-Austrian resident investors in the

Fund. Tax is levied on regular rental income and on the

increases in the value of the Austrian real estate as

revealed by the annual valuation. This limited tax liability

applies to individual investors who are neither domiciled

nor have their habitual residence in Austria (in the case of

corporations, which are neither headquartered in nor

managed from Austria):

For natural persons, the rate of tax on this income is

25% in Austria. If the investor’s taxable income in

Austria amounts to no more than EUR 2,000 per calendar

year, the investor is not required to submit a tax

return, and the income remains tax-free.

For corporations, the tax rate in Austria has been 25%

since 2005. There is no statutory allowance as there is

for natural persons. However, the Austrian tax authorities

will not tax investors if their income is very low, to


ensure administrative efficiency. Tax office 1/23 in

Vienna is the local office responsible for dealing with

queries concerning this tax liability.

The Austrian income applicable to one unit in SEB

ImmoInvest amounts to EUR –0.0634 for the 2006 calendar

year. The amount of income subject to tax in Austria

can be calculated by multiplying this figure by the

number of units held by the respective investor.

This unlimited tax liability applies to individual investors

who are domiciled or have their habitual residence in

Austria (in the case of corporations, which are headquartered

in or managed from Austria):

For natural persons, the rate of tax on this income is

25% in Austria (withholding tax on dividend income or

special tax rate in accordance with section 37 (8) no. 5 of

the Einkommenssteuergesetz (EStG – Austrian Income Tax

Act), unless the standard taxation option in accordance

with section 97 (4) of the EStG is exercised.

For corporations, the tax rate in Austria has been 25%

since 2005.

For private foundations, taxable income from real estate

funds offered via public placements is subject to an

interim tax rate of 12.5%.

Insofar as Austrian withholding tax on dividend income

is deducted from the entire distribution received

by the investor (if the units are held in an Austrian

custody account), an adjustment may be made via the

negative distribution-equivalent income (assessment or

reimbursement in accordance with section 240 of the

Bundesabgabenordnung (BAO – Austrian Federal Fiscal

Code)).

For investors who have unlimited tax liability in Austria,

the Austrian income applicable to one unit in SEB

ImmoInvest amounts to EUR 0.8996 for the 2006 calendar

year (resulting from a distribution per unit of

EUR 2.3000 and distribution-equivalent income per

unit of EUR – 1.4004). The amount of income subject to

tax in Austria can be calculated by multiplying this

figure by the number of units held by the respective

investor. Foreign taxes in the amount of EUR 0.0890 per

unit are deductible from the taxable amount thus

calculated.

Annual Report as of 31 March 2006 61


Tax Information for Investors

Documentation of the bases for taxation in accordance with section 5 (1)

sentence 1 number 1 of the InvStG (German Investment Tax Act) 1)

Partial distribution/ partial retention

62 SEB ImmoInvest

Private assets Business assets Business assets

Investors liable Investors liable

for income tax for corporation tax

Amount per unit Amount per unit Amount per unit

in EUR in EUR in EUR

a) Distribution amount 2.3000 2.3000 2.3000

b) Income distributed

(proportion of income from financial year contained in the distribution)

i.e. not including amount carried over from previous year and not including

development project interest

1.2995 1.3050 1.3050

Distribution-equivalent income 0.2568 0.2513 0.2513

(carried forward to new account in accordance with tax law)

c) Included in the distribution

aa) Carried forward from previous year 0.2922 0.2867 0.2867

bb) Tax-free capital gains on securities 0.1572

cc) Domestic and foreign dividend income, half of which is tax-free 0.0658 2) 0.0658 2)

dd) Domestic and foreign dividend income, tax-free for corporations 0.0658

ee) Capital gains from shares, half of which is tax-free 0.0000 2)

ff) Capital gains from shares, tax-free for corporations 0.0000

gg) Tax-free capital gains from subscription rights to

free units in corporations 0.0000

hh) Tax-free capital gains on real estate outside the

taxable period of ten years 0.0000

ii) Tax-free foreign income subject to progression clause

in Germany 0.3278 0.3278 0.3278

jj) Foreign income with imputable foreign withholding tax 0.0240 0.0240 0.0240

kk) Foreign income with notional foreign withholding tax 0.0000 0.0000 0.0000

Included in the distribution-equivalent income

cc) Domestic and foreign dividend income, half of which is tax-free 0.0000 2) 0.0000 2)

dd) Domestic and foreign dividend income, tax-free for corporations 0.0000

ii) Tax-free foreign income subject to progression clause

in Germany 0.0000 0.0000 0.0000

jj) Foreign income with imputable foreign withholding tax 0.0000 0.0000 0.0000

kk) Foreign income with notional foreign withholding tax 0.0000 0.0000 0.0000

d) Portion of distribution and distribution-equivalent income warranting the

crediting or reimbursement of withholding tax on dividend income

aa) Basis of calculation for savings tax 1.0055 1.0055 1.0055

bb) Basis of calculation for withholding tax on dividend income 0.0000 0.0000 0.0000

e) Amount of withholding tax on dividend income to be credited or reimbursed

aa) Savings tax (30% of above basis of calculation) 0.3017 3) 0.3017 3) 0.3017 3)

bb) Withholding tax on dividend income (20% of above basis of calculation) 0.0000 3) 0.0000 3) 0.0000 3)

f) Amount of foreign tax for foreign income taxable

in Germany

aa) Imputable foreign withholding tax 0.0130 0.0130 0.0130

bb) Deductible foreign withholding tax 0.0000 0.0000 0.0000

cc) Notional foreign withholding tax 0.0000 0.0000 0.0000

g) Amount of depreciation or depletion

(depreciation of buildings in accordance with German law)

h) Amount of any corporation tax credit utilised

by the distributing corporation in accordance with

0.6795 0.6795 0.6795

section 37 (3) KStG 0.0000

1) Deviations between amounts according to investment law or tax law result from the offsetting of gains and losses, non-deductible costs in accordance with tax law

and the tax depreciation of buildings.

2) Income is disclosed in full (of which half is tax-free).

3) Plus solidarity surcharge


Attestation report on the review of the audit of tax information

in accordance with section 5 (1) sentence 1 number 3 of the

Investmentsteuergesetz (InvStG – German Investment Tax Act)

To the SEB Immobilien-Investment GmbH investment

company (hereinafter referred to as the Company):

The Company engaged us to review in accordance with

section 5 (1) sentence 1 number 3 of the InvStG whether

the information to be published by the Company for the

SEB ImmoInvest Fund in accordance with section 5 (1)

sentence 1 numbers 1 and 2 of the InvStG for the period

from 1 April 2005 to 31 March 2006 was determined in

line with the provisions of German tax law.

The determination of the tax information in accordance

with section 5 (1) sentence 1 numbers 1 and 2 of the InvStG

in conjunction with the requirements of German tax law

is the responsibility of the legal representatives of the

Company. To the extent that the Company has invested

funds in units of other funds (target funds), it uses the

tax information for these target funds at its disposal.

Our responsibility is to express an opinion, based on our

review, as to whether the Company has calculated the

information required by the InvStG in accordance with

German tax law. To the extent that the Company has

invested funds in units of target funds, our review was

limited to the correct incorporation by the Company of

the tax information made available for these target funds

on the basis of certificates supplied to us. We did not

review the corresponding tax information.

We conducted our review in accordance with the generally

accepted standards for the audit of financial statements

promulgated by the Institut der Wirtschaftsprüfer. Those

standards require that we plan and perform the review

such that we can assess with reasonable assurance whether

the information provided in accordance with section 5 (1)

sentence 1, numbers 1 and 2 of InvStG is free of material

misstatements. Knowledge of the management of the Fund

and evaluations of possible misstatements are taken into

account in the determination of review procedures.

The effectiveness of the internal control system for the

determination of information in accordance with section 5

(1) sentence 1 numbers 1 and 2 of the InvStG and the evidence

supporting the tax information are examined primarily

on a test basis within the framework of the review.

The review also includes assessing the Company’s interpretation

of the tax laws applied. No objection may be

raised to the interpretation selected by the Company if

it can be reasonably supported by legal materials, court

rulings, the relevant specialist literature and published

opinions by the tax authorities. Attention is drawn to the

fact that future legal developments and, in particular, new

insights from court rulings could necessitate a different

assessment of the Company’s interpretation.

We believe that our review provides a reasonable basis for

our opinion. On the basis of this, we certify to the Company

in accordance with section 5 (1) sentence 1 number 3 of the

InvStG that the information in accordance with section 5 (1)

sentence 1 numbers 1 and 2 of the InvStG was determined

in accordance with the provisions of German tax law.

Frankfurt am Main, 31 May 2006

PwC FS Tax GmbH

Wirtschaftsprüfungsgesellschaft

Steuerberatungsgesellschaft

Markus Hammer M. Oliver Schachinger

Tax consulant Lawyer

Annual Report as of 31 March 2006 63


Bodies (as of 31 March 2006)

Investment Company

SEB Immobilien-Investment GmbH

Rotfeder-Ring 7, 60327 Frankfurt am Main

P.O. Box, 60283 Frankfurt am Main

Phone: +49 (0) 69 2 72 99-1000

Fax: +49 (0) 69 2 72 99-090

Subscribed and

paid-up capital EUR 5.113 million

Liable capital EUR 4.404 million

(as of 31 December 2005,

after adoption of annual financial statements)

Frankfurt am Main Commercial Register, HRB 29859

Established: 30 September 1988

Management

Barbara A. Knoflach

Axel Kraus

Choy-Soon Chua (from 1 January 2006)

Supervisory Board

Fredrik Boheman

Chairman of the Board of Directors of SEB AG,

Frankfurt am Main

– Chair – (from 1 February 2005)

Peter Buschbeck

Member of the Board of Directors of SEB AG,

Frankfurt am Main

– Deputy Chair – (from 29 December 2005)

Harry Klagsbrun

SEB Asset Management Sweden CEO

(from 29 December 2005)

Thomas Ericsson

SEB Asset Management Sweden

Global Head of Operations (from 29 December 2005)

Petteri Karttunen

Gyllenberg Asset Management

Managing Director (from 29 December 2005)

William Paus

Deputy Head of SEB Merchant Banking

(from 29 December 2005)

Wolfgang Argelander

Member of the Board of Directors of SEB AG,

Frankfurt am Main

(1 February 2005 to 28 December 2005)

Renate Bloß-Barkowski

Member of the Board of Directors of SEB AG,

Frankfurt am Main

– Deputy Chair –

(until 28 December 2005)

64 SEB ImmoInvest

Auditors

Frankfurt am Main

Shareholder

SEB AG, Frankfurt am Main (100%)

Custodian Bank

SEB AG, Ulmenstrasse 30, 60325 Frankfurt am Main

Subscribed and

paid-up capital EUR 0.775 billion

Liable capital EUR 2.299 billion

(as of 31 December 2005,

after adoption of annual financial statements)

Expert Committee

Klaus Peter Keunecke, Dr.-Ing.

Publicly certified and sworn expert for the valuation of

rents and developed and undeveloped properties, Berlin

– Chair –

Hans-Joachim Ackermann, Architekt / Dipl.-Ing.

Publicly certified and sworn expert for construction

costing and property valuation, Dortmund

– Deputy Chair –

Albrecht Novak, Dipl.-Ing./Freelance architect

Publicly certified and sworn expert for general

construction and the valuation of developed and

undeveloped properties and rents, Stuttgart

Ulrich Renner, Dipl.-Kfm.

Publicly certified and sworn expert for the valuation of

developed and undeveloped properties, Wuppertal

Günter Schäffler, Dr.-Ing.

Publicly certified and sworn expert for the planning and

control of construction costs, the valuation of undeveloped

and developed properties, rents for properties and

buildings, Stuttgart

Prof. Michael Sohni, Dr.-Ing.

Publicly certified and sworn expert for the valuation of

developed and undeveloped properties, Darmstadt


Investment Company:

SEB Immobilien-Investment GmbH

Rotfeder-Ring 7

60327 Frankfurt am Main, Germany

P.O. Box

60283 Frankfurt am Main, Germany

Internet: www.SEBAssetManagement.de

Phone: +49 (0) 69 2 72 99-10 00

Fax: +49 (0) 69 2 72 99-0 90

Sales:

SEB Asset Management AG

Rotfeder-Ring 7

60327 Frankfurt am Main, Germany

IMMOJBEV 0306

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