Real estate investment funds – SEB Immoinvest and DJE real estate
Interesting developement with regard to the last two remaining closed real estate funds, CS Euroreal and SEB Immoinvest:
The price of the fund already jumped this morning:
EDIT: The SEB Immoinvest is not in the DJE Real estate fund
It will be interesting to see how this works out on May 7th. To a certain extend I find it relatively unfair, as this move punishes traditional fund savers, which might not know about this or have not enough time to react.
I am not sure, if the SEB Immoinvest itself would be a good special situation right now. According to the details of the “offer” , they will collect all orders from now on.
If the orders are less or equal existing liquidity (30% of the fund), they will pay out all orders, otherwise they will not pay out anything. So no “odd lot” tendering for the small guys, it is just “all or nothing”.
For me it is extremely difficult to assess how many people will redeem, my assumption is that all institutional ones more or less have to submit orders.
At current prices of 40 EUR, the upside would be some 30% whereas the donside would be the old price of around 34-35 EUR. So one has to assume at least a 50% chance of reopening to make this a positive exected value investment.
DJE Real Estate:
As Perlenfischer pointed out in the comments, there is a con call on MAy 7th with regard to further proceedings from DJE. This should be interesting.