Annual Report - SEB Asset Management

sebassetmanagement

Annual Report - SEB Asset Management

SEB Global

Property Fund

Annual Report as of 31 December 2011

SEB InvEStmEnt GmBH


2 | SEB Global Property Fund

Table of Contents

Editorial 4

Concept and Investment Strategy 5

Risk Management 6

Real Estate Markets – An Overview 8

Results of the Fund in Detail 10

Structure of Fund assets 10

Liquid assets 10

Suspension of unit redemption 10

Distribution 10

Investment performance 10

Income components 12

Portfolio Structure 13

Outlook 17

Overview: Returns, Valuation

and Letting 18

Development of Fund Assets 20

Condensed Statement of Assets 22

Regional Distribution of Fund Properties 25

Statement of Assets, Part I:

Property Record 26

Statement of Assets, Part II:

Liquidity Portfolio 34

Statement of Assets, Part III:

Other Assets, Liabilities and Provisions,

Additional Disclosures 35

Statement of Income and Expenditure 37

Application of Fund Income 39

Auditors’ Report 40

Tax Information for Investors 41

Bodies 49

Graphics

Geographical distribution of properties 13

types of use of Fund properties 13

Economic age distribution of Fund properties 14

Remaining lease terms 14

Allocation of Fund properties by value class 14

tenant structure by sector 15


Falkenried 88, Hamburg, Germany

SEB Global Property Fund

at a glance as of 31 December 2011

Fund assets EUR 291.5 million

Total property assets (market values) EUR 511.5 million

thereof held directly EUR 202.8 million

thereof held via real estate companies EUR 308.7 million

Total Fund properties 21

thereof under construction 1

thereof held via real estate companies 14

Changes during the period under review

Purchases/additions/sales/disposals 0

Letting rate (estimated gross rental) 1) 2) 88.5%

Letting rate (estimated net rental) 2) 88.3%

Net inflow of funds EUR 0.0 million

Distribution on 2 April 2012 EUR 8.5 million

Distribution per unit EUR 30.00

Income tax-free portion held as private assets EUR 17.0374

Portion liable to income tax held as private assets EUR 12.9626

Total property return 3) for the period 1 January 2011 to 31 December 2011 * –2.5%

Liquidity return 4) for the period 1 January 2011 to 31 December 2011 * 0.4%

Investment performance 5) for the period 1 January 2011 to 31 December 2011 * –2.7%

Investment performance 5) since Fund launch * 13.4%

Unit value/redemption price 6) EUR 1,027.14

Issuing price EUR 1,088.77

Total expense ratio 7) 0.64%

1) The estimated gross rental corresponds to the estimated net rental plus incidental expenses.

2) Properties under construction are not included in the letting rate.

3) Based on the Fund’s 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) The redemption of unit certificates can be subject to a redemption fee of up to 7% of the unit value.

7) Total costs as a percentage of average Fund assets within a financial year, calculated as of 31 December 2011.

* The return figures were not included in the audit for which the Auditors’ Report was issued.

This Annual Report and the Sales Prospectus available separately are to be handed to investors in SEB Global Property Fund units until the publication of the Annual Report

as of 31 December 2012. Following its publication, the Semi-annual Report must also be provided at the time of sale.

German Securities Code Number: SEB1A9 ISIN: DE000SEB1A96 Fund launch date: 19 October 2006

Annual Report as of 31 December 2011 | 3


4 | SEB Global Property Fund

Dear investor,

The SEB Global Property Fund reported a performance of

–2.7% in financial year 2011 – the first loss since its launch

in October 2006. Average returns for open-ended real

estate funds as an investment class have decreased overall

since 2010 as a result of the market-driven decline in interest

rates for liquidity portfolio assets and changes in value,

which vary considerably from product to product. The

SEB Global Property Fund also recorded negative changes

in value in the low single digits for the first time in financial

year 2011. Over the long term, however, the Fund

contin-ues to deliver a positive performance, with average

annual returns of 2.4% since its launch.

Editorial

Barbara A. Knoflach,

Siegfried A. Cofalka,

Choy-Soon Chua

and Axel Kraus

At EUR 291.5 million, the SEB Global Property Fund’s total

assets had fallen slightly as of 31 December 2011. The

Fund’s management initially suspended the redemption

of unit certificates for three months with effect from

7 December 2011 for liquidity reasons in order to protect

existing customers. It also ceased issuing new units. The

suspension of unit redemption and of the issue of new units

was extended by way of a resolution on 6 March 2012.

The SEB Global Property Fund’s portfolio was unchanged

as of the reporting date, comprising 14 equity interests and

seven directly held properties in seven countries. The Fund’s

broad portfolio diversification and high-quality properties

testify to its solidity.


Concept and Investment Strategy

The SEB Global Property Fund is a global open-ended real

estate fund with a core investment strategy. The Fund is

aimed at investors who wish to invest relatively large sums

for the long term in indirect real estate investments with

a low risk profile and to exploit the income potential offered

by the professional management of international real

estate investments.

The SEB Global Property Fund’s liquidity weighting is set

to a low figure of between 5% and 10% of Fund assets to

reduce the dilutive effect on the return from real estate.

This makes active liquidity management necessary in order

to synchronise inflows and outflows of funds and real estate

transactions. Units are therefore issued and redeemed in

line with the principle of “cash on demand only”.

In accordance with the investment strategy, the Fund’s

management is gradually building up a balanced portfolio

in terms of region and type of use. The focus of investments

is on office, logistics and retail real estate in Europe. The

portfolio is rounded off by properties in the USA and Asia.

Active management ensures continual portfolio optimisation.

Targeted purchases and sales in established real estate

markets are combined with investments in growth markets in

order to achieve a balanced mix of potential returns and risk

diversification. In addition, selective measures continually

safeguard the competitive strength of portfolio properties.

A combined top-down/bottom-up investment process is

used to select properties. In the top-down approach, the

Fund’s management assesses the economic opportunities

and risks, as well as those relating to the locations of

potential investments and their market prospects. In the

case of specific investment decisions, it analyses individual

properties in terms of their location and the immediate

environment, the building’s quality, the tenants and their

creditworthiness, among other criteria (bottom-up approach).

The decision-making criterion when selecting low-risk

properties is the stable ongoing cash flow these generate.

In addition, the Fund’s management buys properties with

the potential for value appreciation. It incurs letting risks

selectively and consciously in order to realise appreciation

gains. It also selects markets where anti-cyclical investments

promise positive appreciation in value.

The average holding period for Fund properties is set at

seven to ten years. Consequently, potential exit strategies

already play an important role at the stage when prop-

erties are bought.

The debt ratio (leverage) is specified strategically at Fund

level at up to 50%. Loans are used primarily for tax optimisation

and to hedge currency risks. At the same time, debt

finance is carefully aligned with the cash flows from the individual

properties and the Fund’s financial structure in order

to achieve positive long-term leverage effects. Fixed interest

rate periods and loan maturities are aligned with the income

structure and planned holding period of the properties, expect-

ed interest rate developments and the Fund’s performance.

The currency risk with property investments in foreign cur-

rencies is reduced by taking out loans in foreign currencies

and through forward exchange transactions. According to statutory

requirements, a maximum of 30% of Fund assets can be

subject to currency risks. The Fund’s management ensures

that foreign currency items are hedged in accordance with

statutory requirements and the risk profile of the product.

Falkenried 88, Hamburg, Germany

Annual Report as of 31 December 2011 | 5


6 | SEB Global Property Fund

Risk Management

Risk management is a continuous, integral process that

covers all areas of the business, comprising all of the measures

applied to systematically deal with risk. One of the key

aims of this process is identifying and mitigating any potential

risks at an early stage. The early identification of risk

helps create room for manoeuvre that can be used to help

safeguard existing potential for success over the long term

and create new opportunities. SEB Investment GmbH’s risk

management process consists of risk strategy and the identification,

analysis and assessment, management and moni-

toring, and communication and documentation of risks.

In line with the relevant legal provisions, a distinction is

made between the following main risk types:

Counterparty risk

Default by a securities issuer, tenant, or counterparty could

lead to losses for the Fund. Issuer risk describes the effect

of specific developments at an individual issuer that impact

the price of a security in addition to general capital market

trends. Default by tenants is countered through active portfolio

management and regular monitoring. Other measures

include credit rating checks and the avoidance to a large

extent of cluster risk in the rental segment.

Even when securities and tenants are carefully selected,

losses due to the financial collapse of issuers or tenants cannot

be ruled out. Counterparty risk comprises the risk that

the other party to an agreement will partially or fully default

on its obligation. This applies to all contracts signed for the

account of a fund, but particularly in connection with the

derivative transactions that are entered into, for example,

to hedge currency risk.

Interest rate risk

The liquidity portfolio is exposed to interest rate risk and

influences the Fund return. If market interest rates change

in relation to the rate applicable when the investment was

made, this will affect prices and yields and lead to fluctuations.

However, these price movements vary depending

on the investment duration. Fixed-income securities with

shorter maturities offer lower price risks than fixed-income

securities with longer maturities. By contrast, fixed-income

securities with shorter maturities generally have lower

returns than fixed-income securities with longer maturities.

Liquidity was held in current account balances at banks

during the reporting period.

Loans are also exposed to interest rate risk. In order to minimise

negative leverage effects as far as possible, fixed interest

rate periods and the final maturity of loans are aligned

carefully with the planned holding period of the properties,

letting rate trends and expected interest rate developments.

The Fund management company may employ derivatives

to reduce exchange rate and interest rate risks. Derivatives

are used exclusively for hedging purposes to mitigate risk.

Currency risk

If the assets belonging to a fund are invested in currencies

other than the fund currency, the fund receives the income,

repayments and proceeds from such investments in the rele-

vant currency. If the value of this currency falls against the

fund currency, the value of the fund declines. In principle,

foreign currency items are largely hedged as part of a lowrisk

currency strategy. Thus, in addition to taking out loans

in the relevant currencies, foreign currency items are hedged

using forward exchange transactions.

Real estate risk

The properties owned by an open-ended real estate fund

are the basis for its returns. Such real estate investments are

subject to risks that may have an effect on the unit value of

the fund. For this reason, a large number of factors can cause

property values and income from properties to fluctuate:

• In any investment decision, political, economic and legal

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.

• 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 signed 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 fire and storm damage as well as natural

disasters (such as flooding and earthquakes) 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


Wisselwerking 58, Diemen, Netherlands


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

and 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.

Market risks specific to real estate, such as vacancies, letting

rates, lease expiries and the performance of the real

estate portfolio, are regularly monitored. An appropriate

department is responsible for monitoring performance and

for control of performance components (e.g. returns on real

estate, returns on the liquidity portfolio, other income and

fees). A reporting system has been set up for the relevant

performance indicators.

Operational risk

The Investment Company is responsible for ensuring the

proper management of the Fund. It has made the appropriate

arrangements for this and implemented risk minimisation

measures for all operational risks identified. The Fund’s

operational risks include legal and tax risks.

Liquidity risk

Unlike exchange-traded securities, for example, real estate

cannot always be sold quickly. Depending on internal cash

flows, the Fund therefore holds liquidity over and above

the minimum required by law. In exceptional cases, however,

unit certificate redemptions may be suspended if

unexpected outflows of funds cannot be covered by the

available liquidity and the required liquidity must first be

obtained through the sale of properties or borrowing, for

example.

Risks arising during the reporting period are addressed in

the individual chapters.

Annual Report as of 31 December 2011 | 7


8 | SEB Global Property Fund

Real Estate Markets – An Overview

Fragile upturn continues

Global economic growth slowed in 2011, but remained

robust at 3.8% after 5.2% in 2010, thanks to the emerging

markets. The unusually large number of natural disasters –

exacerbated in Japan by the resulting nuclear catastrophe –

high commodity prices and the debt crisis in Europe and

the USA led to stuttering economic performance. In the

second half of the year, the debt crisis caused a significant

slowdown in global economic growth. As a result, global

growth will again lose some momentum in 2012 and is expected

to reach between 3.0% and 3.5%. Europe’s crisishit

countries are likely to fall into recession, while other

countries in the region will stagnate or see only moderate

growth. Following a period of weakness, the US economy is

performing better than expected. Although not unaffected

by the slowdown, emerging markets are still registering the

strongest economic growth. Forecast risks are currently

elevated, largely in relation to how the sovereign debt and

banking crisis will progress.

Capital market environment

Financing terms became increasingly stringent over

the course of the year. Although capital market interest

rates declined on balance and have moved sideways at

a historically low level since autumn 2011, access to

credit in the banking sector became more difficult as a

result of the sovereign debt and banking crisis. On the

stock markets, the situation improved following the

summer’s price slump.

Recovery in the investment markets

The impact of the financial market turbulence on the real

estate markets has so far been manageable. Although

investment activity on the commercial real estate markets

lost momentum, the previous year’s level was reached or

exceeded in all regions. Security remains the main priority

for real estate investors. Activity centred on high-quality

properties in good locations with long-term leases. Initial

yields were relatively stable and a further decline was only

experienced in high-demand segments. Transaction volumes

in 2012 are likely to remain at similar levels to 2011,

with the polarisation between primary and secondary markets

persisting. Equity-rich investors have an advantage

due to the tighter financing terms.

Rental markets – an overview

The situation on the rental markets improved in 2011 following

the usual time lag in comparison to general economic

trends. In addition to relocations, there was increasing

primary demand, although many companies shelved their

expansion plans in the second half of the year. The twotier

trend in rents continued: prime rents in many markets

increased to exceed the previous year’s level, while rents

in the secondary markets remained under pressure. This

divergent trend is set to continue in 2012, with rents in

prime locations increasing moderately. The restructuring

of the banking sector means demand in the world’s financial

centres will likely decline further.

United Kingdom

In spite of the slowdown on the rental and investment

markets, the UK market saw the highest number of transactions

in Europe in 2011. Investment activity was heavily

focused on London, resulting in a widening gap between

the real estate returns generated in the capital and those

in regional markets. Rental growth is set to slow given the

more or less stagnant economy in 2012. Due to the low

level of construction activity in prime locations, stable

growth is to be expected in London. In some cases prime

yields for core properties have already fallen back to 2007

levels and are likely to remain at this low level.

Germany

After recovering strongly in the first half of 2011, the German

economy also cooled down. However, the labour market

trend remained positive. Rental activity rose sharply in 2011

and prime rents in Berlin, Frankfurt, Hamburg and Munich

have recovered from their lows. However, a further rise in

rents will likely be curbed by the merely moderate growth

that is anticipated. The German real estate market is still

experiencing brisk investment activity and the proportion

of international investors has climbed particularly steeply.

Initial yields remained unchanged overall. Some leeway

does exist on defensive prime markets for a slight decline in

initial yields. However, this is likely to be limited in light of

current uncertainties.

France

French economic growth also slowed and will remain more

or less stagnant in 2012. Rental activity eased, although

prime rents in both Paris and the regional markets recovered

year on year. Only downtown locations in major cities offer

further potential for rent increases, since the amount of

space available has remained unchanged. Investors seeking

security are focusing on the capital, as in the UK, and France

is therefore also experiencing an increasing disparity between

Paris and regional cities. Returns in prime locations

are likely to trend sideways at a low level, while a slight

increase is expected in secondary locations.

Netherlands

As the “gateway to Europe”, the Dutch economy has been hit

particularly hard by the slowdown in global trade. Prime rents,

which have risen slightly up to now, are likely to stagnate as a

result of this, as well as due to the high vacancy rates in some

locations. International investors’ interest in the Netherlands

has recently dwindled, leading to a decline in transaction volumes

in the second half of 2011 and a slight increase in initial


yields. This trend will reverse only once international investors,

in particular, start to regain their risk appetite.

Spain

The economy in Spain is being held back by the need to

cut both public and private sector debt. High vacancy levels

mean that rents on the office and logistics markets remain

under pressure. This is also impacting investor interest. Initial

yields rose as investment volumes declined in 2011. Only

the prime segment is expected to offer stable returns.

Northern Europe

After an extremely strong recovery, the economy in Northern

Europe is also losing pace. However, growth is still in

positive territory and the labour market situation is stable.

Having temporarily hit record levels, rental activity has

eased. The rental trend in the prime segment of the office

and logistics markets is expected to remain stable. Returns

in certain core markets again declined slightly, with a stagnation

in investment volumes, but should now remain stable

in line with the international trend.

Central Europe

Investors in Central Europe focused on Poland in particular

thanks to that country’s unusually positive economic trend.

On the Central European rental markets, prime rents for

office space stabilised despite high completion rates in certain

areas. Strong economic growth in Poland has recently

been reflected in rising rents. Prime yields have seen a

trend reversal in all locations. Given the recent adjustment

of purchase prices and the opportunities for recovery,

the prime markets in particular continue to offer selective

investment opportunities.

USA

The US economy will grow moderately in 2012 but will

remain dependent on economic policy support. As a result,

the situation on the labour market is also expected to continue

improving slowly. Risks exist in connection with the

upcoming elections and the need to consolidate public sector

finances, which is inevitable sooner or later. Rental activity

on the US commercial real estate markets eased over the

course of 2011. However, the rental trend is being supported

by the extremely low completion rates in certain areas, and

the patchy rent stabilisation observed so far will spread as a

result. New York and Washington, D.C. are exceptions, as

they are affected by the restructuring of the banking sector

and the impact of the US debt crisis. Although returns are

expected to continue declining moderately in certain markets,

initial yields will likely trend sideways at current levels overall.

Kroonpark 6, Arnhem, Netherlands

Asia

Although a slowdown is expected, Asia will once again

see the strongest economic growth in the world in 2012.

Lower inflation risk offers greater scope for monetary policy

easing to counter the cooling growth. Consequently, demand

for space on the commercial real estate markets

is expected to continue to rise. The high level of development

activity on the South Korean and Malaysian markets

and in China’s Tier II cities will, at most, put a brake on rent

rises. A temporary correction is expected in the exposed

trade and financial centres of Hong Kong and Singapore.

Activity on the Asian investment markets was stable in

2011. To a large extent, this continues to be attributable to

properties and development projects in China. In the commercial

segment, investor interest was mainly focused on

Tokyo, Hong Kong and Singapore. Price trends on most

markets have started to reverse. However, there is little

room for a further decline in initial yields.

Annual Report as of 31 December 2011 | 9


10 | SEB Global Property Fund

Results of the Fund in Detail

Development of the SEB Global Property Fund

Reporting date

31 Dec. 2008

EUR thousand

Reporting date

31 Dec. 2009

EUR thousand

Reporting date

31 Dec. 2010

EUR thousand

Reporting date

31 Dec. 2011

EUR thousand

Properties 220,830 222,495 218,300 202,800

Equity interests in real estate companies 124,857 125,287 127,822 130,985

Liquidity portfolio 19,288 34,958 28,781 29,390

Other assets 34,534 20,945 23,127 18,689

Less: liabilities and provisions – 92,149 – 91,976 – 92,439 – 90,406

Fund assets 307,360 311,709 305,591 291,458

Number of units in circulation 283,236 283,755 283,755 283,755

Unit value (EUR) 1,085.17 1,098.51 1,076.95 1,027.14

Distribution per unit (EUR) 1) 10.70 34.60 22.00 30.00

Date of distribution 1 April 2009 1 April 2010 1 April 2011 2 April 2012

1) Payable after the end of the financial year

Structure of Fund assets

The SEB Global Property Fund’s assets declined by

EUR 14.1 million in the period from 1 January to 31 De-

cember 2011 and amounted to EUR 291.5 million as

of the reporting date. The number of units in circula-

tion remained unchanged, at 283,755.

Liquid assets

The SEB Global Property Fund’s gross liquidity ratio on

the reporting date was 10.1%. The liquid assets were held

as demand deposits. The average liquidity ratio in the

last twelve months, including the investment comnpanies’

liquid assets, amounted to 12.6% of Fund assets.

Suspension of unit redemption

The Fund’s management initially suspended the redemption

of unit certificates for three months with effect from

7 December 2011. This measure was implemented for

liquidity reasons in order to protect existing customers in

accordance with section 81 of the Investmentgesetz (InvG –

German Investment Act) in conjunction with section 12(5)

of the General Fund Rules. Issuance of new units in the SEB

Global Property Fund was also discontinued at the same

time in accordance with section 12 no. 1 sentence 2 of the

General Fund Rules. The suspension of unit redemption and

the discontinuation of the issue of new units were subsequently

extended as the conditions required to successfully lift

the suspension did not exist at the end of the three months.

Distribution

A total of EUR 8.5 million will be distributed for financial

year 2011. The distribution amounts to EUR 30.00 per unit.

Of this amount, EUR 17.0374 (56.8%) is tax-free for private

investors. Payment will be made to investors on 2 April 2012.

Further information on the distribution and the taxable

results for units held as business assets can be found on

pages 39 and 41.

Investment performance *

The Fund generated a performance of –2.7% over the

reporting period, or EUR –27.81 per unit. Its cumulative

performance since its launch on 19 October 2006

amounts to 13.4%.

Unit value as of 31 December 2011 EUR 1,027.14

Plus distribution on 1 April 2011 EUR 22.00

Minus unit value on 1 January 2011 EUR – 1,076.95

Investment performance EUR – 27.81

Further information on the liquidity portfolio, loans and

provisions for deferred taxes on capital gains (risk provisions)

can be found in the disclosures on the statement of

assets on page 23 onwards.

Return according to the BVI method *

Return

in %

Return

in % p.a.

1 year – 2.7 – 2.7

3 years 0.7 0.2

Since launch 13.4 2.4

Note: Calculated according to the BVI method (without front-end load, distributions

reinvested immediately). Historical performance data are no indication of

future performance.

* The tables and the explanatory text were not included in the audit for which the

Auditors’ Report was issued.


Valentinskamp 88 – 90, Hamburg, Germany

Overview of loans as of 31 December 2011

Currency

Loan

volume

(direct)

in EUR

in % of

property

assets

Fixed

interest

rate term

Loan volume

(equity interests)

in EUR

1)

in % of

property

assets

Fixed

interest

rate term

Loan volume

(total)

in EUR

in % of

property

assets

EUR loans

(properties in Germany)

EUR loans

26,000,000 5.1 0.5 – – – 26,000,000 5.1

(properties abroad) 47,000,000 9.2 1.2 53,240,285 10.4 0.3 years 100,240,285 19.6

USD loans – – – 127,049,908 24.8 5.0 years 127,049,908 24.8

Total 73,000,000 14.3 0.9 180,290,193 35.2 3.2 years 253,290,193 49.5

Breakdown of loan volumes per currency by fixed interest rate period as of 31 December 2011

Fixed interest rate term

EUR loans

Loan volume

in EUR

USD loans

Loan volume

in EUR

Total loans

Loan volume

in EUR

under 1 year 107,040,285 14,773,245 121,813,530

1–2 years – – 0

2–5 years 19,200,000 – 19,200,000

5–10 years – 112,276,663 112,276,663

over 10 years – – 0

Total 126,240,285 127,049,908 253,290,193

Overview of exchange rate risks as of 31 December 2011

Currency

Open currency items

as of reporting date

in % of Fund volume

(incl. loans)

per currency zone

in % of Fund volume

per currency zone

PLN (Poland) PLN 94,618 EUR 21,190 – 0.4 – 0.4

USD (USA) USD – 346,452 EUR – 267,619 0.5 0.5

Total EUR – 246,429 – 0.3 – 0.3 2)

1) Based on equity interest held.

2) At the reporting date of 31 December 2011, hedges of Fund assets held in foreign currency amounted to 100.3% of Fund assets.

Annual Report as of 31 December 2011 | 11


12 | SEB Global Property Fund

Income components *

Fund income comprises the return on the properties and

on the liquidity portfolio. The return figures for the period

under review are as follows:

The portfolio properties generated a gross return of 7.5%.

After deducting 2.5% in management costs, the net return

was 5.0%.

At – 3.5% of average property assets, the return on changes

in value was negative. This was mainly due to write-downs

on the property in Wels, Austria (– 7.6%) and the properties

in Spain (– 5.4%).

The use of debt as part of the strategic financing ratio had

a negative effect on the return on income from property in

financial year 2011.

Income components of Fund return in % from 1 January 2011 to 31 December 2011 *

I. Properties

Spain

Rest of

world

(A, D, PL)

Total direct

investments

Equity interests

(HU, NL, PL, USA)

Gross income 1) 5.0 8.0 7.1 7.7 7.5

Management costs 1) – 0.6 – 4.0 – 3.0 – 2.2 – 2.5

Net income 1) 4.4 4.0 4.1 5.5 5.0

Changes in value 1) – 5.4 – 8.0 – 7.3 – 0.7 – 3.5

Foreign income taxes 1) 0.2 – 0.1 0.0 – 0.2 – 0.1

Foreign deferred taxes 1) 0.0 – 0.1 0.0 – 0.3 – 0.2

Income before borrowing costs 1) – 0.8 – 4.2 – 3.2 4.3 1.2

Income after borrowing costs 2) – 6.8 – 7.7 – 7.5 2.9 – 2.5

Exchange rate differences 2) 3) 0.0 – 0.1 – 0.1 0.1 0.0

Total income in Fund currency 2) 4) – 6.8 – 7.8 – 7.6 3.0 – 2.5

II. Liquidity 5) 6) 0.4

III. Total Fund income before Fund costs 7) – 2.1

Total Fund income after Fund costs (BVI method) – 2.7

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

2) Based on the Fund’s average property assets financed by equity in the period

under review

3) Exchange rate differences include both changes in exchange rates and currency

hedging costs for the period under review.

4) The 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 87.36%.

Overall, the negative changes in value reduced income

before borrowing costs to 1.2%. As the interest expenses

are higher than this, a negative leverage effect was produced,

resulting in income after borrowing costs of – 2.5%.

Exchange rate differences did not affect Fund income. The

hedging ratio as of the reporting date was 100.3%.

The total income in Fund currency was – 2.5%. Due to market

factors, investments in the liquidity portfolio generated an

average return of 0.4%, resulting in income before Fund

costs of – 2.1%.

Total

5) Based on the Fund’s average liquid assets in the period under review.

6) The average share of Fund assets invested in the liquidity portfolio for the period

was 12.64%.

7) Based on the average Fund assets in the period under review

* The table and the explanatory text were not included in the audit for which the

Auditors’ Report was issued.


Portfolio Structure

The Fund management company did not acquire or sell any

properties in financial year 2011. As of 31 December 2011,

the portfolio comprised 14 equity interests and seven

directly held properties, one of which is under construction.

The portfolio is diversified across seven countries.

Based on their market values, 19.3% of property assets were

invested in Germany and 80.7% were invested abroad as of

the reporting date. At 37.0%, the greatest share of assets

was in the USA.

43.1% of property assets were invested in properties with an

economic age of no more than ten years. In terms of types

of use (based on the estimated net rental for the year), the

portfolio was dominated by retail/catering (39.2%), followed

by offices (34.5%).

Letting

The Fund’s management signed 45 new leases for 4,200 m 2

in the period from 1 January to 31 December 2011. In addition,

46 existing leases for 70,000 m 2 were extended,

North East Station, 2544 Pulaski Highway, North East, Maryland, USA

Geographical distribution of properties Types of use of Fund properties

37.0% (10 properties)

USA

19.3% (2 properties)

Germany

(1 property) 1.0%

Austria

(1 property) 3.8%

Hungary

(2 properties) 11.3%

Netherlands

(3 properties) 12.0%

Spain

(2 properties) 15.6%

Poland

Basis: market values (incl. properties held via equity interests and properties

undergoing construction/renovation)

Retail/

catering

Office

Industrial (ware-

houses, halls)

Car park

Leisure

Other

3.6%

0.0%

1.7%

1.3%

4.6%

2.8%

20.1%

16.4%

39.2%

36.3%

34.5%

Basis: By estimated net rental for the year

By rental space

(incl. properties held via equity interests, but not properties undergoing

construction/renovation)

0 5 10 15 20 25 30 35 40

39.5%

Annual Report as of 31 December 2011 | 13


14 | SEB Global Property Fund

corresponding in total to 18.8% of the Fund’s estimated

net rental for the year.

A new lease was signed for a photovoltaic installation on

the roofs of the Ciempozuelos II property in Spain in 2011.

The lease covers an area of 32,700 m 2 and runs for 25 years.

A new lease was also entered into in Baltimore for a property

whose main tenant had filed for insolvency at the

beginning of 2011. A supermarket is scheduled to move

into the space from mid-2012. The lease runs for 15 years.

The Fund’s management also secured three major lease

renewals in Spain – DHL extended its lease for 7,300 m 2

for another two years, as did Eroski for just under

27,000 m 2 and Geodis for 8,400 m 2 .

The letting rate for the SEB Global Property Fund at the

reporting date was 88.3% of the estimated net rental

(–6.7 percentage points as against the 31 December 2010

reporting date), or 88.5% of the estimated gross rental

(–6.6 percentage points). The average letting rate during

the period under review was 91.4% of the estimated net

rental (–4.6 percentage points), or 91.5% of the estimated

gross rental (–4.4 percentage points).

At present, 38.7% of the leases have a term of more than

five years. The terms and staggered durations of the leases

are an important risk management instrument at the portfolio

level.

At the same time, expiring leases offer the potential to increase

rents on the back of positive market developments.

For further information on the portfolio structure, please

refer to the section entitled “Overview: Returns, Valuation

and Letting” on pages 18 and 19.

Remaining lease terms

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

from 2022

indefinite

Top properties

Hamburg, Valentinskamp 88 – 90

Hamburg, Falkenried 88

Diemen, Wisselwerking 58

Warsaw, Grójecka 5

Gdansk, Ulica Arkonska 6

Top tenants

Tele2 Nederland B.V., Diemen, Wisselwerking 58

BPH S.A. Bank, Gdansk, Ulica Arkonska 6

TPW Todt & Partner KG, Hamburg, Valentinskamp 88 – 90

Grupo Eroski Distribución S.A., Ciempozuelos, Calle Palmeras s/n

Santander Bank, branch of Santander Consumer Bank AG, Hamburg,

Valentinskamp 88 – 90

Economic age distribution of Fund properties Allocation of Fund properties by value class

23.1% (5 properties)

more than 20 years

12.1% (3 properties)

15 to 20 years

21.7% (4 properties)

10 to 15 years

(3 properties) 19.6%

up to 5 years

(5 properties) 23.5%

5 to 10 years

Basis: market values (incl. properties held via equity interests, but not properties

undergoing construction/renovation)

1.1%

1.8%

3.6%

5.3%

7.0%

6.4%

8.0%

7.6%

9.4%

12.8%

12.9%

Basis: estimated net rental for the year (incl. properties held via equity interests,

but not properties undergoing construction/renovation)

10.7% (1 property)

EUR 50 < 100 million

48.5% (7 properties)

EUR 25 < 50 million

Basis: market values (incl. properties held via equity interests, but not properties

undergoing construction/renovation)

24.1%

(12 properties) 40.8%

EUR 10 < 25 million


King’s Contrivance Shopping Center, 8640 Guilford Road, Columbia, Maryland, USA

Tenant structure by sector

by rental space

Consumer goods industry and retail

Automotive and transport

Banks and financial services providers

Engineering, raw materials extraction and processing

Management consulting, legal and tax advisory

Technology and software

Construction companies

Hotels and catering

Public authorities, associations and educational institutions

Utilities and telecommunications companies

Media and entertainment

Insurance companies

Other sectors

by total estimated net rental

Consumer goods industry and retail

Banks and financial services providers

Automotive and transport

Management consulting, legal and tax advisory

Technology and software

Engineering, raw materials extraction and processing

Hotels and catering

Construction companies

Utilities and telecommunications companies

Public authorities, associations and educational institutions

Media and entertainment

Insurance companies

Other sectors

5.1% (15)

3.2% (8)

1.6% (4)

1.4% (17)

0.2% (2)

0.1% (11)

0.1% (5)

0.0% (1)

3.6% (1)

2.9% (17)

1.3% (4)

0.4% (11)

0.2% (2)

0.2% (5)

0.0% (1)

11.0% (29)

10.0% (1)

8.7% (178)

9.2% (5)

8.6% (15)

7.6% (8)

11.9% (178)

18.6% (5)

21.5% (29)

32.6% (121)

Number of tenants in brackets (incl. properties held via equity interests, but not properties undergoing construction/renovation)

0 5 10 15 20 25 30 35 40

40.0% (121)

Annual Report as of 31 December 2011 | 15


16 | SEB Global Property Fund

7005 Security Boulevard, Baltimore, USA

Letting situation of individual properties

The following part of the report on the letting situation

provides a detailed overview of properties with a vacancy

rate of over 33% of the estimated (gross) property rental

as of the reporting date, 31 December 2011.

Property

Development projects in the financial year

from 1 January 2011 – 31 December 2011

Properties under construction – in portfolio 1)

City Street Use Planned

area in m 2

Planned transfer

of risks and rewards of

ownership/completion

Austria

Wels Gunskirchener Strasse 17 – 19 Industrial 32,060 (site) Building law opportunities are

being examined. Construction

will start on leasing.

Vacancy rate

at property

level in %

Construction

status

Vacancy rate

at Fund

level in %

Baltimore, 7005 Security Boulevard

The main tenant filed for insolvency at the beginning of 2011 and terminated the lease for exceptional reasons. A replacement tenant has

already been found. A supermarket is scheduled to move into the space from the middle of financial year 2012 for 15 years.

66.5 2.3

Cabanillas del Campo, Avenida Castilla la Mancha 7

Although there has not yet been any long-term improvement in the market environment, concrete negotiations are currently being held with

an international logistics company.

56.5 1.2

Alovera, Avenida Rio Henares 40

The vacant space in the Alovera logistics centre is due to capacity adjustment measures currently being implemented by the tenant FCC, one of

Spain’s leading logistics companies. The tenant is expected to re-expand into the space in the near future once its economic situation improves.

35.7 1.5

1) Unchanged as against the previous year

Letting rate

0% 0%


Outlook

The Fund’s past financial year was dominated by the euro

crisis and volatility on the investment markets. These

external factors depressed the investment market and led

to higher liquidity requirements on the part of investors.

Redemption requests exceeded the SEB Global Property

Fund’s liquidity holdings.

In such circumstances, lawmakers have provided for the

temporary suspension of unit redemption in order to protect

investors. Unit redemption was suspended as the Fund’s

liquidity holdings were no longer sufficient to service

redemption requests while guaranteeing orderly ongoing

management. The suspension of unit redemption gives the

Fund’s management the time it needs to rebuild liquidity

by selling properties on reasonable terms. The sales process

takes several months – from exploring options in the respect-

ive markets through negotiations to signing the contract.

The priority is to secure the best possible outcome for

investors from these sales.

The Fund’s management is also legally entitled to stop

issuing units in open-ended real estate funds in exceptional

circumstances, such as in the context of a suspension

of unit redemption. This is also primarily designed to

protect investors. New or further exposure to a product

often only makes sense once consolidation is complete.

The Fund Rules can only be amended to meet the new

regulations for open-ended real estate funds after unit

redemption has been resumed. Under the Investment-

gesetz (InvG – German Investment Act), the change must

be made by 31 December 2012 or six months after the

resumption of unit redemption.

All measures taken by the Fund management during the

suspension of unit redemption focus on generating liquidity.

The management team is investigating the selling opportunities

for all properties in the portfolio and will put

a number of properties on the market in the new financial

year. Our goal is to procure sufficient liquidity to service all

redemption requests.

Thank you for the confidence you have shown in us.

SEB Investment GmbH

Knoflach Cofalka

Chua Kraus

Frankfurt am Main, March 2012

Annual Report as of 31 December 2011 | 17


18 | SEB Global Property Fund

Overview: Returns, Valuation and Letting

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

I. Properties

Spain

Gross income 2) 5.0 8.0 7.1 7.7 7.5

Management costs 2) – 0.6 – 4.0 – 3.0 – 2.2 – 2.5

Net income 2) 4.4 4.0 4.1 5.5 5.0

Changes in value 2) – 5.4 – 8.0 – 7.3 – 0.7 – 3.5

Foreign income taxes 2) 0.2 – 0.1 0.0 – 0.2 – 0.1

Foreign deferred taxes 2) 0.0 – 0.1 0.0 – 0.3 – 0.2

Income before borrowing costs 2) – 0.8 – 4.2 – 3.2 4.3 1.2

Income after borrowing costs 3) – 6.8 – 7.7 – 7.5 2.9 – 2.5

Exchange rate differences 3) 4) 0.0 – 0.1 – 0.1 0.1 0.0

Total income in Fund currency 3) 5) – 6.8 – 7.8 – 7.6 3.0 – 2.5

II. Liquidity 6) 7) 0.4

III. Total Fund income before Fund costs 8) – 2.1

Total Fund income after Fund costs (BVI method) – 2.7

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

Directly held properties 62,399,130 150,665,271 213,064,401 0 213,064,401

Properties held via equity interests 0 0 0 299,403,217 299,403,217

Total properties 62,399,130 150,665,271 213,064,401 299,403,217 512,467,618

of which equity-financed property assets 31,206,823 105,465,271 136,672,093 128,035,998 264,708,092

Loan volume 31,192,308 45,200,000 76,392,308 171,367,219 247,759,526

Liquidity 1,393,654 27,874,119 29,267,773 9,028,808 38,296,581

Fund volume 32,600,477 133,339,390 165,939,867 137,064,806 303,004,673

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

Portfolio market values (expert opinions) 61,200 141,600 202,800 308,698 511,498

Portfolio rental valuations (expert opinions) 9) * 4,603 9,321 13,924 21,328 35,252

Positive changes in value acc. to expert opinions 10) 0 0 0 2,603 2,603

Other positive changes in value 11) 0 0 0 900 900

Negative changes in value acc. to expert opinions 10) – 3,400 – 12,100 – 15,500 – 4,862 – 20,362

Other negative changes in value 11) 0 – 20 – 20 – 819 – 839

Total changes in value acc. to expert opinions 10) – 3,400 – 12,100 – 15,500 – 2,259 – 17,759

Total other changes in value 11) 0 – 20 – 20 80 60

Addition (capital gains tax) and discount in accordance

with section 27(2) no. 2 sentence 7 of the InvRBV 0 – 94 – 94 – 915 – 1,009

Total changes in value 12) – 3,400 – 12,214 – 15,614 – 3,094 – 18,708

1) The weighted average figures in the financial year are calculated using 13 monthend

values (31 December 2010 to 31 December 2011).

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 currency

hedging costs for the period under review.

5) The 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 87.36%.

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

7) The average share of Fund assets invested in the liquidity portfolio for the period

was 12.64%.

Rest of world

(A, D, PL)

Total direct

investments

Equity interests

(HU, NL, PL, USA)

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

9) Rental valuations (expert opinions) are defined as the gross profit from rental

determined by experts. Gross profit in this case equates to the sustainable net

basic rent estimated by the experts.

10) Total changes in market values established by experts.

11) Other changes in value comprise changes in carrying amounts such as purchase

costs and purchase price settlements subsequently included in the carrying

amounts.

12) The difference between the overall change in value and the amounts recognised

in the development of Fund assets is attributable to the net income from equity

interests.

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

issued.

Total


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

Office 9.5 6.7 0.4 17.9 34.5

Retail/catering 1.9 0.0 0.0 37.3 39.2

Industrial (warehouses, halls) 0.4 0.0 12.2 3.8 16.4

Leisure 1.1 0.0 0.0 0.6 1.7

Car park 1.5 0.3 0.0 1.8 3.6

Other 3.1 0.2 0.1 1.2 4.6

% of total annual rental income 17.5 7.2 12.7 62.6 100.0

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

Office 1.2 0.2 0.1 0.8 2.3

Retail/catering 0.3 0.0 0.0 3.9 4.2

Industrial (warehouses, halls) 0.1 0.0 2.9 1.3 4.3

Leisure 0.0 0.0 0.0 0.1 0.1

Car park 0.2 0.0 0.0 0.1 0.3

Other 0.4 0.0 0.0 0.1 0.5

% of total vacancies 2.2 0.2 3.0 6.3 11.7

Letting rate (at the reporting date) in % of the

estimated net rental for the year and country 1) 87.3 97.7 75.8 90.0 88.3

Letting rate (at the reporting date) in % of the

estimated gross rental for the year and country 2) 86.8 97.6 75.8 90.2 88.5

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

indefinite 1.4 0.0 0.0 0.4 1.8

2012 1.0 0.0 1.1 4.9 7.0

2013 4.6 7.1 1.5 10.9 24.1

2014 0.0 0.0 3.6 4.4 8.0

2015 1.6 0.0 4.6 3.2 9.4

2016 0.1 0.0 0.0 12.7 12.8

2017 0.4 0.0 0.0 3.2 3.6

2018 0.0 0.9 0.0 5.5 6.4

2019 2.8 0.0 0.0 10.1 12.9

2020 5.1 0.0 0.0 0.2 5.3

2021 0.2 0.0 0.0 0.9 1.1

2022 + 0.0 0.0 0.1 7.5 7.6

% of estimated net rental for the year 17.2 8.0 10.9 63.9 100.0

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

held properties to the total estimated net rental for the Fund. In the case

of the equity investments, the estimated rental is included in proportion to the

equity interest held.

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

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

which are represented by the advance service charge payments.

Germany

Poland

Spain

Equity interests

(HU, NL, PL, USA)

* This table was not included in the audit for which the Auditors’ Report was issued.

Total

Annual Report as of 31 December 2011 | 19


20 | SEB Global Property Fund

Development of Fund Assets

from 1 January 2011 to 31 December 2011

EUR EUR EUR

I. Fund assets at start of the financial year on 1 January 2011 305,590,720.51

1. Distribution for the previous year – 6,242,610.00

of which distribution in acc. with annual report – 6,242,610.00

2. Ordinary net income 8,632,413.92

of which equalisation paid 0.00

3. Realised gains

on forward exchange transactions 3,870,969.46

of which in foreign currency 0.00

Miscellaneous 736,448.63

of which in foreign currency 0.00 4,607,418.09

4. Realised losses

Miscellaneous – 767,123.45

of which in foreign currency 0.00 – 767,123.45

5. Net changes in value of unrealised gains/losses

on properties – 15,613,597.64

of which in foreign currency 0.00

on equity interests in real estate companies – 946,269.14

of which in foreign currency – 77,983.65

on forward exchange transactions – 5,984,676.21

of which in foreign currency 0.00

Changes in exchange rates 2,181,300.96 – 20,363,242.03

II. Fund assets at end of the financial year on 31 December 2011 291,457,577.04


Disclosures on the development of Fund assets

The development of Fund assets shows which transactions

entered into 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 is the distribution

amount reported in the Annual Report for the previous year

(see the total distribution item under the Application of

Fund Income in the Annual Report).

The ordinary net income can be seen from the statement

of income and expenditure.

Realised gains and losses can be seen from the statement

of income and expenditure.

The net change in value of unrealised gains/losses

on properties and on equity interests in real estate

companies is the result of remeasurement gains and

losses and changes in carrying amounts during the financial

year. Changes in market value due to initial valuations by

the Expert Committee or subsequent reappraisals are re-

cognised, as are all other changes in the carrying amounts

of the properties/equity interests. These can be the result,

for example, of the recognition or reversal of provisions,

subsequent purchase price adjustments or cost refunds,

the acquisition of additional minor spaces, etc.

The net change in value of unrealised gains/losses on forward

exchange transactions is the result of changes in

the market values of the transactions in the financial year.

This item also includes changes in value resulting from

exchange rate fluctuations.

Annual Report as of 31 December 2011 | 21


22 | SEB Global Property Fund

Condensed Statement of Assets as of 31 December 2011

EUR EUR EUR EUR % of

Fund

assets

I. Properties

(see Statement of Assets Part I, page 26 ff.)

1. Commercial properties 197,800,000.00 67.87

of which in foreign currency 0.00

2. Properties under construction 5,000,000.00 1.72

of which in foreign currency 0.00

Total properties 202,800,000.00 69.59

Total in foreign currency 0.00

II. Equity interests in real estate companies

(see Statement of Assets Part I, page 28 ff.)

1. Majority interests 130,985,390.42

of which in foreign currency 67,423,881.25

Total equity interests in real estate companies

III. Liquidity portfolio

(see Statement of Assets Part II, page 34 ff.)

130,985,390.42 44.94

1. Bank deposits 29,389,533.83

of which in foreign currency 15,188,195.69

Total liquidity portfolio

IV. Other assets

(see Statement of Assets Part III, page 35 ff.)

29,389,533.83 10.08

1. Receivables from real estate management 5,567,371.46

of which in foreign currency 402,323.74

2. Receivables from real estate companies 11,670,000.00

of which in foreign currency 0.00

3. Interest claims 23,389.53

of which in foreign currency 0.00

4. Miscellaneous 1,428,232.77

of which in foreign currency 259,024.08

Total other assets 18,688,993.76 6.41

Total in foreign currency 661,347.82

Total 381,863,918.01 131.02

Total in foreign currency 83,273,424.76

V. Liabilities from

(see Statement of Assets Part III, page 35 ff.)

1. Loans 73,000,000.00

of which collateralised 45,200,000.00

of which in foreign currency 0.00

2. Land purchases and construction projects 697,730.35

of which in foreign currency 398.20

3. Real estate management 5,914,367.50

of which in foreign currency 780,831.53

4. Miscellaneous 4,884,529.22

of which in foreign currency 208,604.21

Total liabilities 84,496,627.07 28.99

Total in foreign currency 989,833.94

VI. Provisions 5,909,713.90 2.03

of which in foreign currency 2,534,274.77

Total 90,406,340.97 31.02

Total in foreign currency 3,524,108.71

Total Fund assets 291,457,577.04 100.00

of which in foreign currency 79,749,316.05

Unit value (EUR) 1,027.14

Units in circulation 283,755


Germany

EUR

Other EU countries

EUR

USA

EUR

98,600,000.00 99,200,000.00 0.00

0.00 5,000,000.00 0.00

98,600,000.00 104,200,000.00 0.00

0.00 63,561,509.16 67,423,881.31

0.00 63,561,509.16 67,423,881.31

28,023,594.93 1,365,938.90 0.00

28,023,594.93 1,365,938.90 0.00

4,735,019.77 832,351.69 0.00

0.00 11,670,000.00 0.00

0.00 23,389.53 0.00

121,968.13 1,306,264.64 0.00

4,856,987.90 13,832,005.86 0.00

131,480,582.83 182,959,453.92 67,423,881.31

26,000,000.00 47,000,000.00 0.00

6,098.48 691,631.82 0.00

3,830,195.19 2,084,172.31 0.00

4,369,777.26 514,751.96 0.00

34,206,070.93 50,290,556.09 0.00

2,774,687.62 648,165.11 2,486,861.17

36,980,758.55 50,938,721.20 2,486,861.17

94,499,824.28 132,020,732.72 64,937,020.14

Disclosures on the statement of

assets

Fund assets decreased by EUR 14.1 million to EUR 291.5 million

in the financial year from 1 January to 31 December 2011.

I. Properties

There were no additions to or disposals of properties in the

financial year. The commercial properties and the property

under development were included in the Fund assets at

the market values calculated by the experts.

II. Equity interests in real estate companies

Equity interests comprise 14 companies with 14 properties

with an aggregate market value of EUR 308.7 million. After

adjustment for the companies’ other assets and liabilities

(EUR 14.3 million), as well as debt finance (EUR 180.3 million)

and a shareholder loan (EUR 11.7 million), the value of the

equity interests is EUR 131.0 million. Liabilities from debt

finance comprise EUR 127.1 million of loans in US dollars

and loans in euros totalling EUR 53.2 million. The duration

of the companies’ debt finance is 3.2 years.

III. Liquidity portfolio

The bank deposits reported under the liquidity portfolio

item serve to meet ongoing payment obligations arising in

connection with the management of the properties, as well

as purchase price payments for an acquired real estate

company. EUR 14.6 million has been set aside to fulfil the

statutory requirements on minimum liquidity. Bank deposits

are held in foreign currency in Germany.

IV. Other assets

Receivables from real estate management comprise

rent receivables totalling EUR 0.7 million and expenditures

relating to service charges allocable to tenants in the

amount of EUR 4.9 million. These are matched by appropriate

prepayments by tenants of allocable costs in the amount of

EUR 4.3 million, which are included in the liabilities from

real estate management item.

The receivables from real estate companies item contains

a shareholder loan of EUR 11.7 million.

Interest claims result from the shareholder loan to the

real estate company in Hungary.

The other assets disclosed under the miscellaneous

item primarily represent receivables from rental security

deposits furnished in Spain in the amount of EUR 0.6 million,

prepayments to property managers in the amount of

Annual Report as of 31 December 2011 | 23


24 | SEB Global Property Fund

EUR 0.4 million, sales tax receivables from the fiscal

authorities in Germany and abroad in the amount of

EUR 0.1 million and receivables from counterparties to forward

exchange transactions amounting to EUR 0.1 million.

Where properties are acquired in foreign currencies, part of

the exchange rate risk is hedged by taking out loans in the

relevant local currency. The internal portion of the financing

is hedged against changes in exchange rates using forward

exchange transactions. An overview of open currency items

is given in the Statement of Assets, Part III.

Twenty-seven forward exchange transactions with a volume

of USD 262.2 million and 33 forward exchange transactions

with a volume of PLN 56.4 million were entered into in the

period under review to hedge exchange rate risks. Liabilities

to counterparties to forward exchange transactions denominated

in US dollars amount to EUR 4.0 million and receivables

from forward exchange transactions denominated in Polish

zloty total EUR 76.0 thousand. The liabilities are disclosed

under miscellaneous in the liabilities item.

V. Liabilities

Liabilities from loans refer to loans taken out to acquire

properties. Please see the tables on page 11 for a breakdown

of the loan portfolio by currency and the duration in each

case, as well as the breakdown of the loan volume by fixed

interest rate period.

Liabilities from land purchases and construction projects

are mainly the result of outstanding payment obligations

relating to the acquisition of a real estate company in the

amount of EUR 0.7 million.

Liabilities from real estate management primarily consist

of EUR 4.3 million for prepaid allocable costs, EUR 1.1 million

in cash security bonds and EUR 0.5 million for advance rental

payments.

The miscellaneous liabilities item mainly includes

EUR 4.0 million in liabilities to counterparties to forward

exchange transactions, EUR 0.3 million in sales tax liabilities

to domestic and foreign fiscal authorities, EUR 0.3 million

in loan interest liabilities and EUR 0.2 million in liabilities

from management and custodian bank fees.

VI. Provisions

Provisions relate mainly to maintenance measures

(EUR 1.7 million), construction costs (EUR 1.6 million) and

taxes (EUR 1.9 million). Tax provisions relate to deferred

taxes for potential foreign capital gains.

Capital gains tax

Taxes on foreign capital gains are only incurred if a property

is disposed of and actually generates a book profit. The timing

and amount of such taxes is uncertain, as both market

conditions and the basis for tax assessment can change

constantly. Deferred tax liabilities were recognised in full

(100%) and classified as provisions. The difference between

the current market values and the carrying amounts for tax

purposes of the properties was taken as the basis for assessment

in calculating the size of the provision for deferred

taxes on foreign capital gains, using country-specific tax

rates; generally applicable sales costs were taken into consideration

during this process. The provision was charged to

Fund capital, as it is not classified as a distributable reserve.

The Polish and US real estate companies were also included

in the calculation. These are treated as direct acquisitions

for tax purposes, with the result that any gain on the disposal

of shares in the companies is subject to capital gains

tax. Capital gains tax was calculated in the same manner as

the method described above.


Regional Distribution of Fund Properties

Europe: 11 properties, of which

2 properties in Germany

USA: 10 properties

Madrid

Capital with investment

Town/city with investment

Capital

Town/city

London

Cabanillas del Campo

Alovera

Ciempozuelos

Amsterdam

Arnhem

Brussels

Paris

USA

Diemen

Berne

San Francisco

Frankfurt

Hamburg

Munich

Copenhagen

Berlin

Wels

Chicago

Harrisonburg

Roanoke

Prague

Vienna

P E N N S Y L V A N I A

M A R Y L A N D

Timonium

Catonsville

Columbia

Ljubljana

Baltimore

Gdansk

Biatorbágy

New York

Cherry Hill

Washington, D.C.

Warsaw

Budapest

North East

Annual Report as of 31 December 2011 | 25

D

E

L

A

W

A

R

E


Statement of Assets, Part I:

Property Record as of 31 December 2011

Location of property Type of use (as a % of estimated net rental) Area in m 2 Property data

26 | SEB Global Property Fund

Type of property

Project/portfolio

development measures

I. Directly held properties in eurozone countries

Germany

Office

Retail/catering

Industrial (warehouses, halls)

Hotel

Residential

Leisure

Car park

Other

20251 Hamburg

Falkenried 88

20354 Hamburg

C – 43 0 2 0 0 14 7 34 11/2006 1965/2004 8,045 16,290 353 D, A, G, P, H, C 3 B

Valentinskamp 88 – 90 C – 65 20 3 0 0 0 9 3 12/2006 1983 4,199 15,797 195 D, A, P, H 3 A

Austria

4600 Wels C (u.

Gunskirchener Str. 17 – 19 1) con.) – n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 / 2007 n.a. 32,060 n.a. n.a. n.a. H, C n.a. G

Spain

19208 Alovera

Avenida Rio Henares 40

19171 Cabanillas del Campo

C – 3 0 97 0 0 0 0 0 07/2008 2001 64,069 38,968 180 A, S, H 3 G

Avenida Castilla la Mancha 7

28350 Ciempozuelos

C – 6 0 94 0 0 0 0 0 07/2008 2003 28,711 18,856 169 A, S, H 3 G

Calle Palmeras s / n C – 3 0 95 0 0 0 0 2 09/2008 2005 54,756 34,548 348 A, S, H 3 G

II. Directly held properties in countries with other currencies

Poland

80 – 125 Gdansk

Ulica Arkonska 6 C – 93 0 0 0 0 0 4 3 10/2008 2008 5,313 11,330 155 D, A, P, H 2 C

Total properties

Type of property:

C = Commercial property

H = Heritable building right

Project/portfolio

development measures:

Po = Portfolio development measure

Pr = Project development measure

Acquisition date

Year built/renovated

Features:

D = District heating

A = Air conditioning/

auxiliary cooling

G = Goods lift

Site area in m 2

Commercial

Residential

Number of parking spaces

Features

P = Passenger lift

S = Sprinkler system

H = Hot water (central/decentralised)

C = Central heating

Property quality

Location category


Letting Property performance Results of

expert valuation

Number of tenants

Average remaining lease

terms in years

Remaining lease terms expiring

in the next 12 months in %

Vacancy rate in % of

estimated gross rental

Market value/purchase price

(at the reporting date) in EUR

Total transaction costs in EUR

of which fees and

taxes in EUR

of which other costs

in EUR

Total transaction costs in %

of market value/purchase price

Transaction costs amortised in

the financial year in EUR

Transaction costs still to be

amortised in EUR

Expected remaining amortisation

period in years

Debt ratio in % of market value/

purchase price

Rental income during the

financial year in EUR *

Forecast rental income for the

next financial year in EUR *

Property return in the financial

year in EUR *

Gross profit in EUR

Remaining useful

life in years

138 5.4 7.6 18.2 44,500,000 – – – – – – – – 3,289,902 2,292,080 7.4 2,928,254 55

46 5.4 2.3 8.6 54,100,000 – – – – – – – 48.1 4,408,482 3,497,440 8.1 3,188,605 48

n.a. n.a. n.a. n.a. 5,000,000 – – – – – – – – n.a. n.a. n.a. n.a. 36

1 – – 35.7 23,300,000 – – – – – – – 54.9 – – – 1,759,938 40

1 – – 56.5 11,200,000 – – – – – – – – – – – 857,832 42

3 – – 0.0 26,700,000 – – – – – – – 56.2 – – 5.8 1,985,126 45

12 2.1 0.0 2.4 38,000,000

202,800,000

– – – – – – – 50.5 2,921,644 2,306,738 7.7 2,396,125 67

Property quality:

1 = Very high

2 = High

3 = Medium

Location category:

A = Central business district (CBD)

B = Other city centre locations

C = Local office centre

D = Commercial estate

E = City centre (1a)

F = Solo location (shopping centre)

G = Established logistics location

H = Other locations

1) No information has been published since this

property is currently under construction.

* This column was not included in the audit for

which the Auditors’ Report was issued.

Annual Report as of 31 December 2011 | 27


Location of property Type of use (as a % of estimated net rental) Area in m 2 Property data

Company

28 | SEB Global Property Fund

Type of property

Project/portfolio

development measure

Office

III. Properties held via real estate companies in eurozone countries

Netherlands

Retail/catering

Industrial (warehouses, halls)

Hotel

Residential

Leisure

Diemen IV GmbH, Germany, 60327 Frankfurt, Rotfeder-Ring 7

Company’s capital: EUR 21,212,617.35

Shareholder loans: EUR 0.00

Equity interest held: 51.00000%

1. 1112 XS Diemen

Wisselwerking 58 C – 78 7 0 0 0 0 15 0 11 / 2006 2002 10,440 9,928 283 A, P, H, C 3 C

Kroonveste IV GmbH, Germany, 60327 Frankfurt, Rotfeder-Ring 7

Company’s capital: EUR 8,336,000.00

Shareholder loans: EUR 0.00

Equity interest held: 100.00000%

1. 6831 EX Arnhem

Kroonpark 6 C – 98 0 1 0 0 0 1 0 11 / 2006 2005 2,715 5,077 88 A, P, H, C 3 C

IV. Properties held via real estate companies in countries with other currencies

Poland

Salzburg Center Development S.A., Poland, 00-078 Warsaw, Plac Pilsudskiedo 1

Company’s capital: EUR 806,088.29

Shareholder loans: EUR 0.00

Equity interest held: 100.00000%

1. 02-019 Warsaw

Grójecka 5 C / H – 89 3 0 0 0 0 7 1 04 / 2008 2006 2,508 10,607 100 D, A, P, S, H 2 B

Hungary

Tulipan Park A Ingatlanfejlesztö Kft., Hungary, 1036 Budapest, Lajos utca 78

Company’s capital: EUR 4,178,041.24

Shareholder loans: EUR 11,670,000.00

Equity interest held: 100.00000%

1. 2051 Biatorbágy

Huber utca 5 C – 15 0 85 0 0 0 0 0 11 / 2008 2008 89,998 29,305 210 D, G, S, H, C 3 G

USA

Hillview CH, LLC, USA, 08002 Cherry Hill, 2135 Route 38 East

Company’s capital: EUR 4,550,259.31

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

1. Hillview Shopping Center

08002 Cherry Hill, 2135 Route 38 East C – 0 100 0 0 0 0 0 0 06 / 2007 2003 165,257 16,519 1,061 A, G, P, S, C 2 F

Security Center, LLC, USA, 21244 Baltimore, 7005 Security Boulevard

Company’s capital: EUR 4,196,863.99

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

1. Security Square Shopping Center

21244 Baltimore, 7005 Security Boulevard C – 0 100 0 0 0 0 0 0 06 / 2007 2000 24,440 6,103 360 A, S, C 3 F

Type of property:

C = Commercial property

H = Heritable building right

Project/portfolio

development measures:

Po = Portfolio development measure

Pr = Project development measure

Car park

Other

Acquisition date

Features:

D = District heating

A = Air conditioning/

auxiliary cooling

G = Goods lift

Year built/renovated

Site area in m 2

Commercial

Residential

Number of parking spaces

Features

P = Passenger lift

S = Sprinkler system

H = Hot water (central/decentralised)

C = Central heating

Property quality

Location category


Letting Property performance Results of

expert valuation

Number of tenants

Average remaining lease terms

in years

Remaining lease terms expiring

in the next 12 months in %

Vacancy rate in % of estimated

gross rental

Value of the

equity interest

(at the

reporting

date) in EUR

Market value/

purchase price

(at the

reporting

date) in EUR Total transaction costs in EUR

21,837,430

of which fees and taxes

in EUR

of which other costs

in EUR

Total transaction costs in %

of market value/purchase price

Transaction costs amortised

in the financial year in EUR

Transaction costs still to be

amortised in EUR

Expected remaining amortisation

period in years

Debt ratio in % of market value/

purchase price

Rental income during the

financial year in EUR *

Forecast rental income for the

next financial year in EUR *

Property return in the financial

year in EUR *

Gross profit in EUR

Remaining useful

life in years

4 – – 0.0 43,350,000

8,366,674

– – – – – – – 53.8 – – 8.3 2,310,830 62

3 – – 13.1 14,700,000 – – – – – – – 59.5 – – 6.9 955,300 64

24,656,690

22 2.8 1.6 1.8 41,850,000 – – – – – – – 50.6 3,038,585 2,597,800 7.3 2,445,005 66

8,700,715

7 1.6 36.3 31.0 19,300,000 – – – – – – – – 1,381,123 1,374,020 7.2 1,565,915 46

10,965,438

7 5.7 0.0 6.8 26,289,811

5,536,527

– – – – – – – 61.9 2,444,080 1,766,632 9.3 1,752,844 36

8 5.2 0.0 66.5 16,053,593 – – – – – – – 66.0 974,591 1,013,766 6.1 1,098,653 39

Property quality:

1 = Very high

2 = High

3 = Medium

Location category:

A = Central business district (CBD)

B = Other city centre locations

C = Local office centre

D = Commercial estate

E = City centre (1a)

F = Solo location (shopping centre)

G = Established logistics location

H = Other locations

* This column was not included in the audit for

which the Auditors’ Report was issued.

Annual Report as of 31 December 2011 | 29


Location of property Type of use (as a % of estimated net rental) Area in m 2 Property data

Company

USA

30 | SEB Global Property Fund

Type of property

Project/portfolio

development measure

Office

Retail/catering

Industrial (warehouses, halls)

Hotel

Residential

Leisure

Timonium Crossing, LLC, USA, 21093 Timonium, 2080 York Route

Company’s capital: EUR 3,077,403.39

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

1. Timonium Crossing Shopping Center

21093 Timonium, 2080 York Route C – 11 47 0 0 0 14 0 28 06 / 2007 1986 / 1997 12,176 4,722 218 A, P, S, C 3 F

Ingleside, LLC, USA, 21228 Catonsville, 5600 Baltimore National Pike

Company’s capital: EUR 2,815,868.01

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

1. Ingleside Shopping Center

21228 Catonsville, 5600 Baltimore National Pike C – 0 100 0 0 0 0 0 0 06 / 2007 1950 / 1990 36,308 8,901 483 A, S, C 3 F

North East Station, LLC, USA, 21901 North East, 2544 Pulaski Highway

Company’s capital: EUR 2,285,657.54

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

1. North East Station

21901 North East, 2544 Pulaski Highway C – 0 95 0 0 0 5 0 0 06 / 2007 1998 60,284 6,332 403 A, S, C 3 F

Skyline Krop, LLC, USA, 22801 Harrisonburg, 2035 East Market Street

Company’s capital: EUR 5,013,396.09

Shareholder loans: EUR 0.00

Equity interest held: 85.0000%

1. Skyline Village Plaza

22801 Harrisonburg, 2035 East Market Street C – 0 100 0 0 0 0 0 0 06 / 2007 1992 65,402 14,809 559 A,S 3 F

KCVC, LLC, USA, 21046 Columbia, 8640 Guilford Road

Company’s capital: EUR 3,791,583.93

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

1. King’s Contrivance Shopping Center

21046 Columbia, 8640 Guilford Road

FP Sub, LLC USA, 21236 Baltimore, 7927 Belair Road

Company’s capital: EUR 3,328,685.58

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

C – 11 84 0 0 0 1 0 4 06 / 2007 1986 / 1995 41,891 9,406 482 A, P, S 2 F

1. Fullerton Plaza

21236 Baltimore, 7927 Belair Road C – 0 95 0 0 0 0 0 5 06 / 2007 1979 63,194 12,069 718 A, S 3 F

Type of property:

C = Commercial property

H = Heritable building right

Project/portfolio

development measures:

Po = Portfolio development measure

Pr = Project development measure

Car park

Other

Acquisition date

Features:

D = District heating

A = Air conditioning/

auxiliary cooling

G = Goods lift

Year built/renovated

Site area in m 2

Commercial

Residential

Number of parking spaces

Features

P = Passenger lift

S = Sprinkler system

H = Hot water (central/decentralised)

C = Central heating

Property quality

Location category


Letting Property performance Results of

expert valuation

Number of tenants

Average remaining lease terms

in years

Remaining lease terms expiring

in the next 12 months in %

Vacancy rate in % of estimated

gross rental

Value of the

equity interest

(at the

reporting

date) in EUR

Market value/

purchase price

(at the

reporting

date) in EUR Total transaction costs in EUR

3,206,096

of which fees and taxes

in EUR

of which other costs

in EUR

Total transaction costs in %

of market value/purchase price

Transaction costs amortised

in the financial year in EUR

Transaction costs still to be

amortised in EUR

Expected remaining amortisation

period in years

Debt ratio in % of market value/

purchase price

Rental income during the

financial year in EUR *

Forecast rental income for the

next financial year in EUR *

Property return in the financial

year in EUR *

Gross profit in EUR

Remaining useful

life in years

14 2.0 42.6 15.0 12,475,185

5,497,252

– – – – – – – 76.6 1,343,687 947,759 10.8 1,055,724 24

13 4.5 2.1 14.4 17,544,049

4,915,206

– – – – – – – 71.7 1,531,378 1,260,863 8.7 1,333,220 29

14 4.1 2.9 0.0 10,065,504

6,509,993

– – – – – – – 53.3 826,607 635,598 8.2 625,441 38

10 13.4 0.0 4.6 24,484,192

10,420,454

– – – – – – – 75.9 1,902,501 1,772,150 7.8 1,827,229 38

40 7.6 4.9 0.8 24,733,695

3,228,931

– – – – – – – 60.3 1,973,207 1,661,882 8.0 1,732,923 34

15 5.0 11.6 0.0 10,879,674 – – – – – – – 75.1 1,217,403 892,175 11.2 953,708 19

Property quality:

1 = Very high

2 = High

3 = Medium

Location category:

A = Central business district (CBD)

B = Other city centre locations

C = Local office centre

D = Commercial estate

E = City centre (1a)

F = Solo location (shopping centre)

G = Established logistics location

H = Other locations

* This column was not included in the audit for

which the Auditors’ Report was issued.

Annual Report as of 31 December 2011 | 31


Location of property Type of use (as a % of estimated net rental) Area in m 2 Property data

Company

USA

32 | SEB Global Property Fund

Type of property

Project/portfolio

development measure

Office

Retail/catering

Industrial (warehouses, halls)

Hotel

Residential

Leisure

Towne Square, LLC, USA, 24021 Roanoke, 1356 Towne Square Boulevard

Company’s capital: EUR 5,086,399.47

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

1. Towne Square Shopping Center

24021 Roanoke, 1356 Towne Square Boulevard C – 0 100 0 0 0 0 0 0 06 / 2007 1987 120,362 23,545 1,539 A, S, C 2 F

River Hill Village Center, LLC, USA, 21046 Columbia, 6030 Day Break Circle

Company’s capital: EUR 6,407,764.74

Shareholder loans: EUR 0.00

Equity interest held: 85.00000%

1. River Hill Village Center

21046 Columbia, 6030 Day Break Circle C – 0 100 0 0 0 0 0 0 09 / 2007 1997 52,258 8,363 369 A, S, H 3 F

Total equity interests in real estate companies

Type of property:

C = Commercial property

H = Heritable building right

Project/portfolio

development measures:

Po = Portfolio development measure

Pr = Project development measure

Property quality – standard of appointments according to normal production costs 2000

Type

of use

Part of

building

Skeleton construction/

timbering/frame

Car park

Other

Acquisition date

Features:

D = District heating

A = Air conditioning/

auxiliary cooling

G = Goods lift

Year built/renovated

Site area in m 2

Commercial

Residential

Number of parking spaces

Features

P = Passenger lift

S = Sprinkler system

H = Hot water (central/decentralised)

C = Central heating

Solid construction Windows Roofs Sanitary installations

Office simple Simple walls, wooden/sheet metal/ Brickwork with plaster or combined bedding and Wood, single glazing Corrugated fibre cement/sheet metal roofing, Small number of basic toilet facilities,

fibre cement siding

pointing and paint

bitumen/plastic film seal

surface-mounted fittings

medium Lightweight concrete walls with thermal Thermal insulation plaster/composite system, exposed Wood, plastic, insulation glazing Concrete roof tiles, medium thermal insulation Adequate number of toilet facilities,

insulation, concrete sandwich elements, brickwork with combined bedding and pointing and

standard

flush-mounted fittings

12 – 25 cm infill

paint, medium thermal insulation standard

high High-density concrete plates, faced Faced brickwork, metal siding, curtain facade, high Aluminium, shutters, solar shading sys- Clay roof tiles, slate/metal covering, high ther- Good quality toilet fittings

brickwork, clinker, up to 30 cm infill thermal standard

tem, thermal protection glazing

mal insulation standard

very high Glass siding, over 30 cm infill Natural stone Floor-to-ceiling glazing, large sliding Large number of skylights, elaborate roof exten- Generous toilet facilities with

panels, electric shutters, sound-proof

glazing

sions and roof heightening, glass roof cut-outs sanitary facilities, high standard

Retail simple Simple walls, wooden/sheet metal/ Brickwork with plaster or combined bedding and Wood, steel, single glazing Corrugated fibre cement/sheet metal roofing, Small number of basic toilet facilities,

fibre cement siding

pointing and paint

bitumen/plastic film seal

surface-mounted fittings

medium Lightweight concrete walls with thermal Thermal insulation plaster/composite system, exposed Wood, plastic, insulation glazing Concrete roof tiles, medium thermal insulation Adequate number of toilet facilities,

insulation, concrete sandwich elements, brickwork with combined bedding and pointing and

standard

flush-mounted fittings

12 – 25 cm infill

paint, medium thermal insulation standard

high High-density concrete plates, faced Faced brickwork, metal siding, curtain facade, high Aluminium, shutters, solar

Clay roof tiles, slate/metal covering, prefabricated Generous toilet facilities with

brickwork, clinker, up to 30 cm infill thermal standard

shading system, thermal

glass concrete elements, web concrete planks, good-quality fittings

protection glazing

high thermal insulation standard

Logistics simple Simple walls, wooden/sheet metal/ Brickwork with plaster or combined bedding and Wood, single glazing Corrugated fibre cement/sheet metal roofing, Basic toilet facilities, small number

fibre cement siding

pointing and paint

bitumen/plastic film seal

of showers, surface-mounted

fittings

medium Lightweight concrete walls with thermal Thermal insulation plaster/composite system, exposed Wood, plastic, insulation glazing Concrete roof tiles, medium thermal insulation Adequate toilet facilities, several

insulation, concrete sandwich elements, brickwork with combined bedding and pointing and

standard

showers, some surface-mounted

12 – 25 cm infill

paint, medium thermal insulation standard

fittings

Property quality

Location category


Letting Property performance Results of

expert valuation

Number of tenants

Average remaining lease terms

in years

Remaining lease terms expiring

in the next 12 months in %

Vacancy rate in % of estimated

gross rental

Value of the

equity interest

(at the

reporting

date) in EUR

Market value/

purchase price

(at the

reporting

date) in EUR Total transaction costs in EUR

6,231,570

of which fees and taxes

in EUR

of which other costs

in EUR

Total transaction costs in %

of market value/purchase price

Transaction costs amortised

in the financial year in EUR

Transaction costs still to be

amortised in EUR

Expected remaining amortisation

period in years

Debt ratio in % of market value/

purchase price

Rental income during the

financial year in EUR *

Forecast rental income for the

next financial year in EUR *

Property return in the financial

year in EUR *

Gross profit in EUR

Remaining useful

life in years

36 3.4 2.1 6.1 21,890,666

10,912,414

– – – – – – – 74.2 1,857,942 1,652,566 8.5 1,905,067 25

20 5.8 13.1 0.0 25,081,687

130,985,390

– – – – – – – 58.9 2,251,061 1,819,932 9.0 1,766,630 37

Property quality:

1 = Very high

2 = High

3 = Medium

Interior wall finishing

of wetrooms

Oil-based paintwork Wooden floorboards, needle felt,

Part-tiled walls (1.50 m) Carpet, PVC, tiles, linoleum,

wetrooms: tiles

Location category:

A = Central business district (CBD)

B = Other city centre locations

C = Local office centre

D = Commercial estate

E = City centre (1a)

F = Solo location (shopping centre)

G = Established logistics location

H = Other locations

* This column was not included in the audit for

which the Auditors’ Report was issued.

Floor coverings Interior doors Heating Electrical fittings Installations and

other fittings

Panel framed doors, painted leaves and Individual stoves, electric storage heating,

One lighting outlet and 1 – 2 surface- n.a.

linoleum, PVC, wetrooms: PVC

frames

boilers for hot water

mounted sockets per room

Floor-to-ceiling tiles Large tiles, parquet, cast stone, wetrooms:

large tiles, special coated tiles

Natural stone,

elaborately laid

Natural stone, elaborately laid,

wetrooms: natural stone

Oil-based paintwork Wooden floorboards, linoleum, PVC,

wetrooms: PVC

Part-tiled walls (1.50 m) Coated screed, mastic asphalt,

wetrooms: tiles

Floor-to-ceiling tiles Tiles, wood block flooring, cast stone,

wetrooms: large tiles

Plastic/wooden leaves, steel frames Central heating with radiators

(gravity hot water system)

Leaves with high-quality wood veneer,

glass doors, wooden frames

Solid construction, intruder protection,

wheelchair-enabled, automatic doors

Central heating/pumped heating system with

flat radiators, central water heating

Underfloor heating, air conditioning and other HVAC

systems

n.a. Individual stoves, electric storage heating,

boilers for hot water

n.a. Warm air heating units, warm air heating units

connected to central boiler system, district heating

n.a. Central heating/pumped heating system with

flat radiators, central water heating

1 – 2 lighting outlets and

n.a.

2 – 3 sockets per room, IT facilities,

surface-mounted fittings

Several lighting outlets and sockets per n.a.

room, sill trunking with IT cabling

Elaborate fittings, security facilities n.a.

Basic surface-mounted fittings n.a.

Adequate flush-mounted fittings n.a.

Elaborate fittings, security facilities n.a.

Oil-based paintwork Rough concrete, paint n.a. Warm air heating with a direct-fired system n.a. Surface-mounted power and water

outlets, cooking facilities, sink

Part-tiled walls (1.50 m) Screed, mastic asphalt,

block paving without bedding

n.a. Central heating n.a. Surface-mounted power and water

outlets, kitchenette

Annual Report as of 31 December 2011 | 33


34 | SEB Global Property Fund

Disclosures on the property record

The property record on the preceding pages contains

information on properties requiring further explanation.

For reasons of data protection and protection from competition,

data on actual and forecast rental income 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 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’s assets as a whole.

Please read the following information in order to interpret

the data:

The year built/renovated relates to the last year in which

major conversions, extensions, or modernisations took place.

The area corresponds to the leased area at the reporting

date.

The average remaining lease terms in years do not

include any indefinite leases.

The market value is determined by the price that would

be obtained within a short time in the normal course of

Statement of Assets, Part II:

Liquidity Portfolio

IV. Bank deposits

business in accordance with the legal situation and actual

characteristics, the other attributes and the location of the

property, disregarding unusual or personal factors. The valuation

procedure is based on the income approach (Ertragswertverfahren),

in which a property’s value is calculated on

the basis of the sustainable 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.

The purchase price and transaction costs are only

reported for properties that were purchased/added to the

Fund after the changeover to the new Investmentgesetz

(InvG – German Investment Act) on 15 May 2010.

The long-term gross profit corresponds to the rental valuations

determined by the external experts that are 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 represents the long-term income achievable

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

signed at above-market conditions) are deducted from or

added to the market value separately. For this reason, the

rental valuation based on the expert opinion may differ

from the actual estimated position. Rather, it provides a

current estimate of a property’s long-term earnings power.

Market value

EUR

Germany 28,023,594.93

Austria 59,855.58

Spain 725,994.24

Poland 580,089.08

% of Fund

assets

Total liquidity portfolio 29,389,533.83 10.08


Statement of Assets, Part III:

Other Assets, Liabilities and Provisions,

Additional Disclosures

I. Other assets

EUR EUR EUR EUR % of Fund

assets

1. Receivables from real estate management 5,567,371.46

of which in foreign currency 402,323.74

of which rent receivable 643,350.10

of which advance payments for operating costs 4,924,021.36

2. Receivables from real estate companies 11,670,000.00

of which in foreign currency 0.00

3. Interest claims 23,389.53

of which in foreign currency 0.00

4. Miscellaneous 1,428,232.77

of which in foreign currency 259,024.08

of which receivables from hedging transactions 76,009.44

Currency

Market value

sale

EUR

Market value

reporting date

EUR

Preliminary

result

EUR

PLN 4,669,984.41 – 4,593,974.97 76,009.44

Total other assets 18,688,993.76 6.41

Total in foreign currency 661,347.82

II. Liabilities from

1. Loans 73,000,000.00

of which collateralised 45,200,000.00

of which in foreign currency 0.00

2. Land purchases and construction projects 697,730.35

of which in foreign currency 398.20

3. Real estate management 5,914,367.50

of which in foreign currency 780,831.53

4. Miscellaneous 4,884,529.22

of which in foreign currency 208,604.21

of which from hedging transactions 4,020,134.20

Currency

Market value Market value Preliminary

sale reporting date

result

EUR

EUR

EUR

USD 71,559,763.42 – 75,579,897.62 4,020,134.20

Total liabilities 84,496,627.07 28.99

Total in foreign currency 989,833.94

III. Provisions 5,909,713.90 2.03

of which in foreign currency 2,534,274.77

Total Fund assets 291,457,577.04 100.00

of which in foreign currency 79,749,316.05

Units (EUR) 1,027.14

Units in circulation 283,755

Exchange rates * as of 31 December 2011

US dollar (USD) 1.29457 = EUR 1

Polish zloty (PLN) 4.46518 = EUR 1

* Assets denominated in foreign currencies are translated into euros at the exchange rate for the respective currency as determined during Reuters AG’s

midday fixing at 1.30 p.m.

Annual Report as of 31 December 2011 | 35


36 | SEB Global Property Fund

Disclosures on financial instruments

Purchases and sales of financial instruments that were entered into during the reporting period;

all transactions were entered into with affiliated companies.

Disclosures on the measurement policies

Forward exchange transactions were measured at the

forward rate on 31 December 2011.

Bank deposits and time deposits are valued at their nominal

amount plus interest accrued.

Liabilities are recognised at their repayment amount.

Purchases

Market value EUR

from 1 Jan. 2011

to 31 Dec. 2011

Sales

Market value EUR

from 1 Jan. 2011

to 31 Dec. 2011

PLN 5,263,047.59 7,787,594.26

USD 93,307,707.10 102,077,196.30

Total 98,570,754.69 109,864,790.56


Statement of Income and Expenditure

For the period from 1 January 2011 to 31 December 2011 EUR EUR EUR

I. Income

1. Income from properties 13,563,181.62

of which in foreign currency 3,183,443.94

2. Income from equity interests in real estate companies 4,585,321.78

of which in foreign currency 3,825,525.35

3. Interest on liquidity portfolio in Germany 119,999.17

4. Other income 2,266,709.18

of which in foreign currency 39,143.61

Total income 20,535,211.75

II. Expenditure

1. Management costs

1.1 Operating costs 3,806,806.71

of which in foreign currency 724,124.85

1.2 Maintenance costs 1,918,260.28

of which in foreign currency 0.00

1.3 Property management costs 327,521.69

of which in foreign currency 0.00

1.4 Other costs 1,733.89

of which in foreign currency 0.00

2. Foreign taxes 323,252.40

of which in foreign currency 472,580.82

3. Interest on loans 3,372,141.30

of which in foreign currency 0.00

4. Remuneration of Fund management 1,481,288.44

5. Custodian Bank fee 60,021.18

6. Audit and publication costs 151,022.47

7. Other expenditure 460,749.47

of which remuneration of experts 135,435.01

Total expenditure 11,902,797.83

Equalisation paid 0.00

III. Ordinary net income

IV. Disposals

1. Realised gains

plus unrealised changes in values from previous years

8,632,413.92

1.1 on forward exchange transactions in the period under review 1,830,418.00

Changes in value from previous years 2,040,551.46 3,870,969.46

of which in foreign currency 0.00

1.2 Miscellaneous 736,448.63

of which in foreign currency

2. Realised losses

plus unrealised changes in values from previous years

0.00

2.1 Miscellaneous – 767,123.45

of which in foreign currency 0.00

Net gain on disposals 3,840,294.64

V. Net profit for the financial year 12,472,708.56

Total expense ratio 0.64%

Annual Report as of 31 December 2011 | 37


38 | SEB Global Property Fund

Disclosures on the statement of income and expenditure

Income

Income from properties comprises the rental income

from the Fund’s German and foreign properties. A total of

EUR 10.4 million of the income from properties is attributable

to properties in the eurozone (including Germany)

and EUR 3.2 million to properties outside the eurozone.

Income from equity interests in real estate companies

consists of the distributions received by the Fund from real

estate companies in Germany and the USA in the period

under review.

The interest on the liquidity portfolio in Germany comprises

interest income from demand deposits.

The other income item primarily comprises income from

the reversal of provisions (EUR 1.5 million) and interest

income from shareholder loans (EUR 0.7 million).

Expenditure

Management costs primarily comprise operating costs

(EUR 3.8 million), maintenance costs (EUR 1.9 million) and

property management costs that cannot be charged to the

tenants (EUR 0.3 million).

The Fund incurred expenses and recognised provisions

amounting to EUR 0.3 million for the payment of foreign

taxes. This tax expense relates to the USA (EUR 0.3 million)

and Poland (EUR 0.2 million) and is reduced by a tax refund

in Spain (EUR –0.2 million).

As provisions for taxes on deferred capital gains are not

based on concrete intentions to make disposals, they are

taken directly from Fund assets.

Interest on loans resulted from debt finance for property

acquisitions.

The remuneration of Fund management item amounted

to EUR 1.5 million, or 0.49% p.a. of average Fund assets.

In accordance with section 11(3) of the Special Fund Rules

(BVB), the Custodian Bank receives a Custodian Bank fee

of 0.005% of Fund assets at the end of each quarter.

EUR 0.2 million was spent on or added to the provisions

for audit and publication costs for the annual and semiannual

reports.

Other expenditure in accordance with section 11(4) of the

BVB predominantly comprises consultancy costs, external

accounting costs, bank fees and charges, and the costs for

the experts.

The members of the Expert Committees receive remuneration

for the statutory annual valuations. The costs of the

initial valuation opinions are reported as transaction costs

and are therefore not recognised in the statement of income

and expenditure.

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

units are redeemed.

Ordinary net income as of the reporting date amounted to

EUR 8.6 million.

Realised gains on forward exchange transactions represent

the difference between the lower purchase prices and

the prices at sale or maturity. Unrealised changes in the value

of the forward exchange transactions consist of changes up

to the end of the previous year in the market values of the

financial instruments that matured during the financial year.

Deducting the unrealised gains from the previous year results

in the realised gains for the period under review.

The miscellaneous realised gains/losses items are the

result of foreign exchange transactions.

Net profit for the financial year amounted to

EUR 12.5 million as of the reporting date and consisted

of the aggregate of ordinary net income and the net

gain on disposals.

The total expense ratio (TER) shows the impact of costs

on Fund assets. It takes into account management and

Custodian Bank fees, the costs of the Expert Committees

and other costs in accordance with section 11(4) of the BVB,

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.

The method of calculation used is in line with the BVI’s recommended

method. The TER for the SEB Global Property

Fund is 0.64%.

No transaction costs were incurred in the financial year.


Application of Fund Income as of 31 December 2011

I. Calculation of the distribution

Total

in EUR

Per unit

in EUR

1, Carried forward from previous year 9,406,531.38 33.15

2. Net profit for the financial year 12,472,708.56 43.96

II. Amount available for distribution 21,879,239.94 77.11

1. Carried forward to new account – 13,366,589.94 – 47.11

III. Total distribution 1) 8,512,650.00 30.00

1) In accordance with section 7(3), (3a) and (3c) of the Investmentsteuergesetz (InvStG – German Investment Tax Act), the account custodian or the most recent domestic

paying agent is obliged to deduct investment income tax and the solidarity surcharge.

Disclosures on the application of Fund income

The net profit for the financial year in the amount of

EUR 12.5 million can be seen from the statement of

income and expenditure.

EUR 21.9 million is therefore available for distribution.

EUR 13.4 million will be carried forward to new account.

The total distribution in the amount of EUR 8.5 million

(EUR 30.00 per unit) will be made on 2 April 2012.

Annual Report as of 31 December 2011 | 39


40 | SEB Global Property Fund

Auditors’ Report *

To SEB Investment GmbH

SEB Investment GmbH appointed us to audit the Annual

Report of the SEB Global Property Fund for the financial year

from 1 January 2011 to 31 December 2011 in accordance

with section 44(5) of the Investmentgesetz (InvG – German

Investment Act).

Responsibility of the management

The preparation of the Annual Report in compliance with

the provisions of the InvG is the responsibility of the legal

representatives of the investment company.

Responsibility of the auditors

Our responsibility is to express an opinion on the Annual

Report 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 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. The effectiveness

of the internal ac-counting control system and the

evidence supporting the disclosures in 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 and significant estimates

made by the investment company’s legal representatives.

We believe that our audit provides a reasonable basis

for our opinion.

Auditors’ opinion

Our audit has not led to any reservations.

In our opinion, based on the findings of our audit, the

Annual Report complies with the statutory regulations.

Frankfurt am Main, 28 March 2012

Herbert Sahm ppa. Sandra Horst

Auditor Auditor

* Translation of the German auditor’s report on the German annual report prepared by the management of SEB Investment GmbH.


Tax Information for Investors

The distribution for financial year 2011 on 2 April 2012 amounts to EUR 30.00 per investment unit. The following tax treatment

applies to the distribution:

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 30.0000 30.0000 30.0000

of which tax-free 17.0374 17.5461 18.2455

Dividends – 0.5087 1) 1.2081 2)

Reconciliation of Investmentgesetz to Investmentsteuergesetz 3) 17.0374 17.0374 17.0374

of which taxable 12.9626 12.4539 11.7545

Basis of calculation for investment income tax 12.9626

Investment income tax (25%) 4) 3.2406

1) The dividends are from distributions by foreign real estate companies. 60% is taxable in Germany under the Teileinkünfteverfahren (German partial income method).

2) The dividends are from distributions by foreign real estate companies. They are tax-free in Germany subject to section 8b(5), (7) and (8) of the Körperschaftsteuergesetz

(KStG – German Corporation Tax Act).

3) Tax-free/non-taxable difference between the statement of income and expenditure under investment law and the tax accounts.

4) Plus the solidarity surcharge of 5.5% and, if applicable, church tax

General taxation principles

Under German law, real estate funds (hereinafter referred

to as “investment funds”) are exempted from all income

and asset-based taxes. Income is taxed at the level of the

investors.

Investors can only be taxed if income is distributed or

retained or if investment units are redeemed or sold. In

more detail, taxation is based on the provisions of the

Investmentsteuergesetz (InvStG – German Investment Tax

Act) in conjunction with general tax law.

In line with the principle of transparency, investors should

be treated as if they had generated the income produced by

the investment fund directly. However, exceptions apply

to this general principle. For example, negative income

generated by investment funds is offset against positive

income of the same kind at the level of the investment

fund. If the negative income cannot be offset in full, this

cannot be claimed by the investor but must be carried forward

at investment fund level and offset against income

of the same kind in following years.

Thus a distinction needs to be made for tax treatment purposes

between investment fund income attributable to private

investors and that attributable to business investors.

The information on the bases of taxation used to determine

the tax payable by investors is published by the investment

company in the electronic Bundesanzeiger (Federal Gazette;

www.ebanz.de) together with a professional attestation

report in accordance with section 5 of the InvStG (determination

of the information in accordance with the provisions

of German tax law), in addition to being disclosed in the

annual report.

Taxation at private investor level

If the investment units are held as private assets, the income

distributed on investment units and the deemed distributed

income are classified as investment income for tax purposes.

25% tax (plus the solidarity surcharge and, if applicable,

church tax) is withheld on investment income. As the tax

withheld is generally definitive (flat tax), this investment

income does not generally have to be disclosed in the

investor’s income tax return.

The scope of the taxable income, i.e. the tax basis for the

flat tax, was widened significantly as of 2009. In addition to

distributed and deemed distributed investment fund income

and interim profits, investment income includes gains from

the disposal of investment units where these were acquired

after 31 December 2008. 5)

When the tax is withheld, losses incurred are, as a rule, already

offset by the domestic paying agent (units held in custody)

and foreign withholding taxes are taken into account.

5) Gains from the sale of Fund units acquired prior to 1 January 2009 are tax-free as

a rule for private investors (private disposals).

Annual Report as of 31 December 2011 | 41


42 | SEB Global Property Fund

If units of distributing investment funds are not held in a custody

account and coupons are presented to a domestic bank

(self-custody), tax of 25% (plus the solidarity surcharge and,

if applicable, church tax) is withheld.

No tax needs to be withheld if the investor is a German tax

resident and submits an exemption instruction, provided

that the taxable income components do not exceed the

lump-sum savings allowance of EUR 801 for single persons

or EUR 1,602 for married couples filing jointly.

The same applies if a non-assessment certificate is submitted

or if foreign investors furnish proof of their non-resident

status for tax purposes for certain income (for example, nonresidents

for tax purposes are always subject to withholding

tax on domestic rental income and domestic dividends).

The tax withheld is generally definitive. If the investor’s

personal tax rate is lower than the 25% flat tax rate, the

investment income may be disclosed in the income tax

return. The tax office will apply the lower personal tax rate

and count the tax withheld towards the investor’s tax liability

(Günstigerprüfung – most favourable tax treatment).

If no tax has been withheld on investment income, this income

must be disclosed in the investor’s tax return. This investment

income is then also subject to the 25% flat tax rate or to

the lower personal tax rate in the course of the assessment.

Even if tax has been withheld and the investor has a higher

personal tax rate, disclosures on investment income may

have to be made in the investor’s income tax return if, for

example, extraordinary personal expenses or special personal

deductions (e.g. donations) are claimed. However,

income-related expenses (e.g. custody account fees) actually

incurred by the investor cannot be taken into account.

In the case of full profit distribution, investors must pay tax

on the distributed income, while in the case of partial distribution,

investors must pay tax on both the distributed and

the deemed distributed income. Income is taxable or is subject

to withholding tax in the year it accrues.

In particular distributed or retained domestic rental income,

interest and similar income and dividends from real estate

corporations are taxable and subject to 25% withholding tax

(plus solidarity surcharge and, if applicable, church tax). The

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. The tax-free income has no effect on the applic-

able tax rate (no Progressionsvorbehalt – application of the

progression clause) as long as the properties are located in

EU states other than Germany.

Gains from the sale of domestic and foreign real estate not

falling within the 10-year period that are generated at the

investment fund level are always tax-free for private investors.

Gains from the sale of domestic properties within the

10-year period that are generated at investment fund level

are always taxable for the investor and are subject to withholding

tax of 25% (plus the solidarity surcharge and, if

applicable, church tax). This applies regardless of whether

they are distributed or retained. By contrast, gains from the

sale of foreign real estate within the 10-year period in respect

of which Germany has waived taxation in accordance with a

double taxation agreement are not subject to withholding tax.

Gains from the sale of shares, equity-equivalent profit participation

rights and investment units, gains from forward

transactions and income from option premiums generated

at the investment fund level are not recognised at the level

of the investor unless they are distributed. Gains from the

sale of the capital claims listed in section 1(3) sentence 3

number 1 letters a) to f) of the InvStG are also not recognised

at the level of the investor if they are not distributed.

Return of capital distributions (e.g. in the form of development

project interest) are not taxable. A return of capital

distribution occurs where the distribution exceeds the

income for tax purposes generated by the investment

fund. Return of capital distributions that investors receive

during their period of ownership are treated as reducing

the cost from a tax law point of view, i.e. they take effect

on the disposal of the investment units.

Taxation at business investor level

Investors who hold their investment units as business assets

realise business income as a rule.

25% tax (plus the solidarity surcharge) is withheld on this

income. However, the withheld tax is not definitive, so that

tax prepayments made during the course of the year must be

offset against income tax and corporation tax on assessment.

Tax need only not be withheld, or withheld tax can only

be refunded, upon presentation of a corresponding nonassessment

certificate. In other cases, investors receive

a tax certificate documenting the tax withheld.

However, the paying agent will not withhold tax on certain

income (e.g. foreign dividends) if the investor is a corporation

with unlimited tax liability or this investment income

is the business income of a domestic business and a declaration

to this effect is submitted to the paying agent by a

creditor of the investment income in an official form.

Business investors with unlimited tax liability in Germany

who qualify as cash-basis taxpayers must tax the investment

income when it accrues. Where profits are determined using

accrual-basis accounting, investors must recognise distributed

and deemed distributed income when the claim arises.

To this extent general tax accounting law rules are applied.

The 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 tax-


ation agreements. However, investors that are not subject to

the KStG are subject to the progression clause in the case of

income from countries outside the European Union and the

European Economic Area (EEA).

Only 60% of domestic and foreign dividends, including

those paid by real estate corporations 1) , that are distributed

or retained by the investment fund are taxable at the level of

investors subject to income tax (Teileinkünfteverfahren –

partial income method). 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.

Income that is tax-free in accordance with double taxation

agreements and income subject to the partial income method

must be deducted from taxable and accounting profit during

preparation of the income tax and corporation tax returns.

In the case of income subject to the partial income method

accruing to investors subject to income tax, only 40% of the

amount shall be deducted.

In line with section 2(2a) of the InvStG, distributed or re-

tained interest income must be taken into account under the

earnings stripping rule within the meaning of section 4h of

the Einkommensteuergesetz (EStG – German Income Tax Act).

Since 2005, 10% of income-related expenses that cannot

be directly allocated to specific income at the investment

fund level have been non-deductible for business investors

as well. In its decree on 11 January 2008, the Rhineland

Regional Finance Office, in agreement with the German

Federal Ministry of Finance and the Ministry of Finance of

North Rhine-Westphalia, expressed the view that business

investors in investment funds are allowed to create a tax

adjustment item for the non-deductible income-related

expenses in the case of non-distributing and distributing

investment funds. Investors required to prepare accounts

must provide evidence of the amount of the adjustment item.

If the amount of the adjustment item is not evidenced, the

non-deductible income-related expenses must be added back

as off-balance sheet items when determining taxable income.

Investment income tax

The investment company and domestic custodians (e.g.

custodian banks) are generally required to withhold and

remit investment income tax for the investor. The investment

income tax is generally definitive for private investors. However,

investors have an assessment option and in some cases

an assessment obligation. If the investment units are held as

business assets, an assessment obligation generally exists.

Foreign investors can only have investment income tax

that has been remitted for them offset or reimbursed within

the framework of the relevant double taxation agreement

between their state of residence and Germany. The Federal

Central Office of Taxation is responsible for reimbursements.

Solidarity surcharge

A 5.5% solidarity surcharge is levied on the tax withheld and

remitted when the investment fund distributes or retains

income. The solidarity surcharge can be credited towards

income tax and corporation tax.

Church tax

If income tax is already levied via the tax withheld by a German

custodian (withholding agent), the church tax payable on this

is levied as a surcharge to the tax withheld in accordance with

the church tax rate for the religious community/denomination

to which the investor belongs. To this end, persons subject to

church tax must inform the withholding agent in a written

application that they are a member of a particular religion. In

the application, married couples must also declare the proportion

of the spouses’ entire investment income constituted

by the investment income attributable to each spouse, so that

the church tax can be allocated, withheld and remitted on this

basis. If no allocation ratio is indicated then the allocation will

be made on a per capita basis.

The deductibility of church tax as a special personal deduction

is already recognised as reducing the tax burden when

the tax is withheld.

Foreign withholding tax

In some cases, withholding tax is retained on the investment

fund’s foreign income in the countries of origin. Moreover, in

some cases investments were made in countries in which no

withholding tax is actually levied on the income, although

withholding tax can be asserted (notional withholding tax).

Imputable foreign withholding tax is already recognised as

reducing the tax burden when the tax is withheld.

Capital gains at investor level

If investment fund units acquired after 31 December 2008

are disposed of by a private investor, the capital gains are

subject to the flat tax rate of 25%. Provided the investment

units are held in a domestic custody account, the account

custodian will deduct the tax. The withholding of the 25% tax

(plus solidarity surcharge and, if applicable, church tax) can

be avoided by submitting a sufficient exemption instruction or

a non-assessment certificate. Gains and losses incurred can

be offset against other income from the sale of investments

(with the exception of losses from the sale of shares).

No investment income tax needs to be withheld if a nonassessment

certificate is issued or a valid exemption instruction

is submitted. If the investor can prove that it is

non-resident for tax purposes, then the investment income

tax withheld is limited to income from German dividends,

German rental income and disposal gains on properties

located in Germany. 1) This does not apply to dividends in accordance with the REIT-Gesetz

(German REIT Act).

Gains from the sale of investment units acquired after

31 December 2008 are tax-free for private investors

insofar as they relate to income that accrued to the investment

fund during the period of ownership, that has not yet

Annual Report as of 31 December 2011 | 43


44 | SEB Global Property Fund

been recognised at investor level, and that is tax-free for the

investor under double taxation agreements (gains from real

estate for the proportionate period of ownership).

Capital gains realised on investment units acquired prior to

1 January 2009 are tax-free for private investors.

Gains from the sale of investment units held as business

assets are tax-free for business investors insofar as they

consist of foreign rental income that has not yet accrued

or been deemed to have accrued and of realised and unrealised

investment fund gains from foreign real estate, insofar

as Germany has waived taxation (gain from real estate for

the proportionate period of ownership).

Furthermore, gains from the sale of investment units held

as business assets are tax-free for corporations 1) if the gains

consist of dividends that have not yet accrued or been

deemed to have accrued and of realised and unrealised

investment fund gains from domestic and foreign real estate

corporations (gain from shares for the proportionate period

of ownership). Natural persons subject to income tax who

hold investment units as business assets have to tax 60%

of these capital gains.

From a tax law point of view, the redemption of investment

units is treated as a sale, i.e. the investor recognises a disposal

gain or loss.

Custodians located in Germany calculate the capital gain as

the assessment basis for the tax to be withheld for investors.

In this context, a gain or loss is the difference between the

disposal price less any relevant expenses and the original

cost. When calculating the capital gain, the interim income

at the time of acquisition must be deducted from the original

cost, and the interim income at the time of disposal from the

disposal price, so that interim income is not taxed twice. In

addition, retained income that the investor has already

taxed must be deducted from the disposal price so as to

avoid double taxation in this area, too.

Interim profits

Interim profits consist of payments for interest accrued or

deemed to have accrued contained in the sale or redemption

price as well as gains from the sale of capital claims not

listed in section 1(3) sentence 3 number 1 letters a) to f) of

the InvStG that have not yet been distributed or retained by

the investment fund and that were therefore not yet taxable

for the investor (comparable to accrued income on fixedinterest

securities in the case of direct investments). Interest

income and interest claims generated by the investment

fund are subject to income tax and investment income tax in

the case of the redemption or sale of the investment units

by German tax residents. The investment income tax withheld

on interim profits amounts to 25% (plus 5.5% solidarity

surcharge and, if applicable, church tax).

Interim profits paid on the purchase of investment units

can be deducted as negative investment income for income

tax purposes in the year of payment, provided that

the investment fund calculates an equalisation paid item.

They are already recognised as reducing the tax burden at

the custody account level for the purposes of tax withholding.

In addition, no tax is withheld in the case of an exemption

instruction or submission of a non-assessment certificate. In

calculating interim profits, rental and leasing income, and

income from the valuation and disposal of properties are

not taken into account.

Interim profits are calculated every time the unit value is

determined and are published on each valuation date. The

interim profits are calculated by multiplying the respective

interim profits per investment unit by the number of investment

units given in the purchase/sale note. Interim profits

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 apply

both to investors whose investment units are held as

private assets and to investors whose investment units

are held as business assets.

The regulations governing gains from shares apply only to

investors whose investment units are held as business

assets.

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 investment fund, in respect of which Germany

has waived taxation in accordance with a double taxation

agreement. The investment company publishes gains

from real estate as a percentage of the value of the investment

unit on each valuation date.

Gains from shares comprise dividend income that has not

yet accrued or been deemed to have accrued to the investor,

including from real estate investment corporations, and realised

and unrealised gains and losses from equity interests

held by the investment fund, especially in real estate investment

corporations. The investment company publishes the

gains from shares on each valuation date as a percentage of

the value of the investment unit.

On the date of purchase and sale of the investment 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

period of ownership that are relevant for tax purposes.

1) In the case of corporations 5% of the tax-free capital gains are considered to be

non-deductible business expenses and are therefore taxable.


Notice

Further explanations on the tax treatment of investment

fund income can be found in the notice regarding important

tax regulations for investors in the Sales Prospectus.

Tax liability in Austria

Since the introduction of the Immobilien-Investmentfondsgesetz

(ImmoInvFG – Austrian Real Estate Investment Fund

Act), a limited tax liability has been in force in Austria in

respect of the gains generated by non-Austrian resident

investors from Austrian real estate held by the investment

fund. Tax is levied on regular rental income and on the

increases in the value of the Austrian real estate resulting

from 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 in

Austria is 25%. 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. If this limit is exceeded or if

a notice to this effect is issued by the Austrian tax office,

a tax return must be filed in Austria.

• For corporations, the tax rate in Austria is 25%. There is

no statutory allowance as there is for natural persons.

• The income applicable to one investment unit in the SEB

Global Property Fund subject to tax in Austria amounts to

EUR –34.53053 for the 2011 financial year. The amount

of income subject to tax in Austria can be calculated by

multiplying this figure by the number of investment units

held by the respective investor.

• The taxable income for the 2011 financial year is negative.

Losses cannot be carried forward at Fund level.

Losses may only be offset in the current year against

other positive income in Austria (e.g. from other equity

interests in real estate funds holding Austrian property

assets).

• Austrian income is taxable for private investors and investors

who determine their profits on the basis of cash

accounting in the year it accrues (here: 2012). If no distribution

is paid, the deemed distributed income is deemed

to have accrued at the end of four months after the end

of the Fund’s financial year.

• Investors who determine their profits using accrual-basis

accounting must recognise taxable income (distributed

and deemed distributed income) when the claim arises

(= end of the Fund’s financial year; here: 2011).

Annual Report as of 31 December 2011 | 45


46 | SEB Global Property Fund

Documentation of the bases for taxation in accordance with

section 5(1) sentence 1 nos. 1 and 2 of the InvStG

Private assets

Amount per unit

in EUR

1)

2) Business assets

3)

Business assets

(income tax

(corporation

payers)

tax payers)

Amount per unit Amount per unit

in EUR

in EUR

Section 5(1) sentence 1 numbers 1 and 2 of the InvStG letter:

a) Distribution amount (resolution on the distribution dated 27 February 2012) 4) 30.9436846 30.9436846 30.9436846

Memo item: distribution amount paid, including investment income tax withheld 30.0000000 30.0000000 30.0000000

aa) Deemed distributed income from previous years contained in the distribution 5.5811439 5.5811439 5.5811439

bb) Return of capital distributions contained in the distribution 13.0111980 13.0111980 13.0111980

b) Income distributed 12.3513427 12.3513427 12.3513427

Deemed distributed income (amount partially retained) 0.6112553 0.6112553 0.6112553

c) Included in distributed income

bb) Capital gains as defined by section 2(2) sentence 2 of the InvStG in conjunction

with section 8b(2) of the KStG or section 3 no. 40 of the EStG 5) dd) Tax-free capital gains as defined by section 2(3) no. 1 sentence 1 of the InvStG in the

– 0.0000000 0.0000000

version applicable as of 31 Dec. 2008 0.0000000 – –

ee) Income as defined in section 2(3) no. 1 sentence 2 of the InvStG in the version applicable

as of 31 Dec. 2008, insofar as the income is not investment income as defined in section

20 of the EStG 0.0000000 – –

ff) Tax-free capital gains as defined by section 2(3) of the InvStG in the version applicable as

of 1 Jan. 2009

Cumulatively included in the distribution and deemed distributed income

(amount partially retained)

0.0000000 – –

aa) Income as defined in section 2(2) sentence 1 of the InvStG in conjunction with section

8b(1) of the KStG or section 3 no. 40 of the EStG 5) – 1.2716997 1.2716997

cc) Income as defined in section 2(2a) of the InvStG 6) – 2.0412260 2.0412260

gg) Income as defined in section 4(1) of the InvStG 0.0000000 0.0000000 0.0000000

hh) Income contained in letter gg) that is not subject to the progression clause 1.1278133 1.1278133 1.1278133

ii) Income as defined in section 4(2) of the InvStG for which no deduction was made in

accordance with section (4) 7) 0.0000000 0.0000000 0.0000000

jj) Income contained in letter ii) to which section 2(2) of the InvStG in conjunction with section

8b(1) and 8b(2) of the KStG or section 3 no. 40 of the EStG is to be applied 7) – 0.0000000 0.0000000

kk) Income contained in letter ii) as defined in section 4(2) of the InvStG giving rise to an

entitlement to credit tax deemed to have been paid against income or corporation tax

in accordance with an agreement to avoid double taxation 7) 0.0000000 0.0000000 0.0000000

ll) Income contained in letter kk) to which section 2(2) of the InvStG in conjunction with section

8b(1) and 8b(2) of the KStG or section 3 no. 40 of the EStG is to be applied 7) d) Portion of distribution and deemed distributed income warranting the crediting

of investment income tax

– 0.0000000 0.0000000

aa) as defined in section 7(1) and 7(2) of the InvStG 2.3236099 2.3236099 2.3236099

bb) as defined in section 7(3) of the InvStG 10.6389881 10.6389881 10.6389881

cc) as defined in section 7(1) sentence 5 of the InvStG, insofar as included in letter aa) – 0.0000000 0.0000000

e) (repealed) – – –


Private assets

Amount per unit

in EUR

1)

2) Business assets

3)

Business assets

(income tax

(corporation

payers)

tax payers)

Amount per unit Amount per unit

in EUR

in EUR

f) Amount of foreign tax incurred on the income as defined in section 4(2) of the

InvStG that is included in distributed and deemed distributed income and

aa) Creditable in accordance with section 4(2) of the InvStG in conjunction with section

32d(5) or section 34c(1) of the EStG or an agreement to avoid double taxation if no

deduction was made in accordance with section 4(4) of the InvStG 8) bb) Contained in letter aa) and attributable to income to which section 2(2) of the InvStG in

conjunction with section 8b(1) and 8b(2) of the KStG or section 3 no. 40 of the EStG is to

0.0000000 0.0000000 0.0000000

be applied 8) cc) Deductible in accordance with section 4(2) of the InvStG in conjunction with section

34c(3) of the EStG if no deduction was made in accordance with section 4(4) of the

– 0.0000000 0.0000000

InvStG

dd) Contained in letter cc) and attributable to income to which section 2(2) of the InvStG in

conjunction with section 8b(1) and 8b(2) of the KStG or section 3 no. 40 of the EStG is to

0.0000000 0.0000000 0.0000000

be applied 8) – 0.0000000 0.0000000

ee) Deemed to have been paid in accordance with an agreement to avoid double taxation

and creditable in accordance with section 4(2) of the InvStG in conjunction with this

agreement 8) 9) 0.0000000 0.0000000 0.0000000

ff) Contained in letter ee) and attributable to income to which section 2(2) of the InvStG in

conjunction with section 8b(1) and 8b(2) of the KStG or section 3 no. 40 of the EStG is to

be applied 8) – 0.0000000 0.0000000

g) Amount of depreciation or depletion 11.8928866 11.8928866 11.8928866

h) Withholding tax paid in the financial year, reduced by reimbursed withholding

tax for the financial year or earlier financial years 0.9436846 0.9436846 0.9436846

i)

Amount of non-deductible income-related expenses in accordance with section

3(3) sentence 2 no. 2 of the InvStG 0.6112553 0.6112553 0.6112553

1) Investment units that unit holders hold as private assets according to tax law

2) Investment units that unit holders taxed in accordance with the EStG hold

as business assets

3) Investment units that unit holders taxed in accordance with the KStG hold

as business assets

4) Distribution in accordance with section 12 of the Circular from the Federal

Ministry of Finance (BMF) dated 18 August 2009.

5) Income and profits are disclosed in full.

6) Income is disclosed net.

7) Income is disclosed in full.

8) Withholding taxes are disclosed in full in business assets.

9) Not contained in letter f) aa)

Annual Report as of 31 December 2011 | 47


48 | SEB Global Property Fund

Attestation report in accordance with section 5(1) sentence 1 number 3

of the InvStG on the preparation of the tax law information

To the SEB Investment GmbH investment company

(hereinafter referred to as the Company):

The Company has appointed us to determine the abovementioned

tax law information for the SEB Global Property

Fund investment fund in accordance with section 5(1)

sentence 1 numbers 1 and 2 of the Investmentsteuergesetz

(InvStG – German Investment Tax Act), and to submit an

attestation report in accordance with section 5(1) sentence

1 number 3 of the InvStG that the tax law information was

determined in compliance with the provisions of German

tax law.

The financial reporting for the Fund, which serves as the

basis for the determination of the tax law 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.

Our responsibility was to determine the information in

accordance with section 5(1) sentence 1 numbers 1 and 2

of the InvStG for the Fund in accordance with the provisions

of German tax law on the basis of the records and

the Company’s other documents for the Fund. To this end,

the Fund’s income and expenditure were identified as part

of a tax law reconciliation in accordance with German tax

provisions. To the extent that the Company has invested

funds in units of target investment funds, our activities

were limited exclusively to the correct incorporation of the

tax law information made available for these target investment

funds on the basis of certificates supplied to us in

accordance with 5(1) sentence 1 number 3 of the InvStG.

We did not review the corresponding tax law information.

Figures from an equalisation paid item were also included

in the determination of the tax law information.

The scope of our audit did not include an examination of

the completeness and accuracy of the documents and

information presented to us in the same manner as an audit

under German commercial law; to this extent we relied on

the audit opinion issued by the auditor of the annual financial

statements and did not undertake any further audit activities.

In addition, we have assumed that the documents and

information presented to us by the Company are complete

and accurate.

The determination of the tax law information in accordance

with section 5(1) sentence 1 numbers 1 and 2 of the InvStG

is based on the interpretation of the tax laws to be applied.

Insofar as several possible interpretations exist, the decision

on this is the responsibility of the management of the

Company. When preparing the determination, we satisfied

ourselves that the decision reached was justifiably supported

in each case by legal materials, court rulings, relevant

specialist literature, and published opinions of the fiscal

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

interpretation adopted by the Company.

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, 15 March 2012

PwC FS Tax GmbH

Wirtschaftsprüfungsgesellschaft

Steuerberatungsgesellschaft

Markus Hammer Oliver Schachinger

Tax consultant


Bodies

Investment Company

SEB Investment GmbH

Rotfeder-Ring 7, 60327 Frankfurt am Main

P.O. Box 111652, 60051 Frankfurt am Main

Phone: +49 69 27 299-1000

Fax: +49 69 27 299-090

Subscribed and paid-up capital EUR 5.113 million

Liable capital EUR 10.932 million

(as of 31 December 2011)

Frankfurt am Main Commercial Register, HRB 29859

Established: 30 September 1988

Management

Barbara A. Knoflach 1)

Matthias Bart 2)

Choy-Soon Chua

Siegfried A. Cofalka 2)

Alexander Klein

Thomas Körfgen

Axel Kraus

Supervisory Board

Fredrik Boheman

Chairman of the Board of Management of SEB AG,

Frankfurt am Main, Germany

– Chairman –

Anders Johnsson

Head of SEB Wealth Management,

Stockholm, Sweden

– Deputy Chairman –

Peter Kobiela

Frankfurt am Main, Germany

Auditors

PricewaterhouseCoopers Aktiengesellschaft

Wirtschaftsprüfungsgesellschaft,

Frankfurt am Main

1) Also CEO of SEB Asset Management AG, Frankfurt

2) Also a member of the Managing Board of SEB Asset Management AG, Frankfurt

Shareholders

SEB AG, Frankfurt am Main (6 %)

SEB Asset Management AG, Frankfurt am Main (94 %)

Expert Committee A

Ulrich Renner, Dipl.-Kfm.

Publicly certified and sworn expert for the valuation of

developed and undeveloped properties, Wuppertal

Prof. Michael Sohni, Dr.-Ing.

Publicly certified and sworn expert for the valuation of

developed and undeveloped properties, Darmstadt

Klaus Thelen, Dipl.-Ing.

Publicly certified and sworn expert for the valuation of

developed and undeveloped properties, Gladbeck

Expert Committee B

Klaus Peter Keunecke, Dr.-Ing.

Publicly certified and sworn expert for the valuation of rents

and developed and undeveloped properties, Berlin

Günter Schäffler, Dr.-Ing.

Publicly certified and sworn expert for the planning and

control of construction costs, the valuation of developed

and undeveloped properties, and rents for properties and

buildings, Stuttgart

Bernd Fischer-Werth, Dipl.-Ing., Dipl.-Wirtsch.-Ing.

Publicly certified and sworn expert for the valuation of

developed and undeveloped properties, Wiesbaden

Annual Report as of 31 December 2011 | 49


Investment Company:

SEB Investment GmbH

Rotfeder-Ring 7

60327 Frankfurt am Main, Germany

P.O. Box 111652

60051 Frankfurt am Main, Germany

Internet: www.sebassetmanagement.de

Phone: +49 69 27 299 -1000

Fax: +49 69 27 299 - 090 PEFC/04-31-1120 GEAM0103.1112

More magazines by this user
Similar magazines