Tag Archives: CS Euroreal

CS Euroreal closed as well

Posted on by 3 comments

Already yesterday’s news but here ist the link (German).

So not really a surprise, the price chart showed already clearly the outcome:

In the wake of this process, also the other funds lost further, which kind of makes sense as now even more real estate is hitting the market:

For instance the Axa fund lost even more:

As I have mentioned before, I think at some point in time, the funds could become interesting again, but there is no need to hurry now.

Edit: According to this article, business for the remaining open funds seems to be really good. So at some point in time we might see some selling activity from the closed funds.

Update DJE Real Estate, SEB and CS Euroreal

Posted on by One comment

DJE Real Estate

Thanks to a friend a received the link to the recording including the slides.

Most important points:

– cash payment of ~17-20% of NAV in Juli (1.30-1.50 EUR)
– however overall cash flow to fund holders much slower than initially thought

In the original post I wrote the following

A) around 2/3 of the fund’s investments (based on NAV) are relatively liquid. It should be no big problem for DJE to return 5 EUR or more within the next 12 months or so. This would mean that at current prices, the investment itself should flow back pretty soon and the discount to intrinsic value could decrease equally soon

This seems to be have been overly optimistic. As far as I understood, a couple of funds have extension options from the side of the fund and some of the still open funds need at least 12 months notice to get the money.

According to management, the secondary market for those funds seem to be very illiquid with large discounts.

So for the portfolio, I will start selling the fund from today on, as my investment case which implied signifcant cash flows in the next 12 months does not really hold.

SEB & CS Euroreal

As now already widely known, the SEB has closed for good beginning of last week.

The CS Eurreal is trying its luck now with Monday, May 21st as the last day where investors can ask for redemptions.

Current price action and price to NAV for the CS indicates a very low propability of reopening:

So potential real estate buyers will see a large pipeline of real estate offers from all those funds with sometimes quite similar objects.

One thing which is interesting is that as far as I know, the funds do not really have to sell all obejcts within the communicated timeframe (i.e. SEB 5 years, AXA 3 years). If they don’t manage to sell, the deposit bank has to take over.

As the deposit banks most likely will not want to be involved in those cases (there will be a wall of law suits along the way) they most likely will directly auction off the properties.

So the end could be quite ugly in the worst case. On the other hand, if prices fall further, the run off funds could become interesting again.

Real estate investment funds – SEB Immoinvest and DJE real estate

Posted on by 11 comments

Interesting developement with regard to the last two remaining closed real estate funds, CS Euroreal and SEB Immoinvest:

SEB wants to save itself by opening just for one single day on May 7th.

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.