annual report 31 Mar 2006 - SEB Asset Management

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.