Our investment decisions focus on risk awareness and sustainable income.
Our investment process focuses on a combined top-down/bottom-up approach. We assess the economic and location-specific opportunities and risks presented by potential investment locations together with the market outlook for the individual real estate sub-markets (top-down). Evaluations of individual investment properties focus in particular on their micro location, immediate environment, appointments, tenants and tenant credit quality (bottom-up).
Real estate investment requires a thorough macroeconomic evaluation of the economic environment, as the global property markets are not entirely transparent and do not function in a uniform way. Our long standing investment experience spanning different real estate cycles, sub-markets, locations and types of use allows us to assess changes occurring on the real estate markets and to exploit them in our long-term, value-driven investment process. Knowledge of different legal systems and the difficulties posed by investment restrictions also makes it possible to accurately assess long-term potential returns.
Market scoring model
We use a market scoring model that compares sub-markets and types of use to analyse global macroeconomic trends. The model filters and assesses all the markets examined using socio-economic and real estate market factors, identifying a working universe of markets in which investments could be attractive in the near future. In addition, a monitoring list is produced, comprising markets that are under observation but where no investments are actively planned in the short term.
Based on the fund-specific target list, our international investment team then identifies investment opportunities that match the individual requirements of the various SEB Asset Management real estate portfolios. Before making concrete investment decisions, the management examines the microlocation and building quality, determines the income and cost situation, and assesses the potential uses of the property. In addition to high current rental income and potential property appreciation gains, resale prospects also play a key role in property selection.
General investment decisions are made by the investment committee, which comprises the Management Board and various experts from the fields of fund management, investment, commercial asset management, technical asset management and risk management. Pooling our real estate expertise allows us to take an interdisciplinary approach to each property and achieve an optimal allocation in our real estate funds.
Once the acquisition is successfully completed, the property-specific documentation is passed on to the commercial asset management team, which is responsible for the ongoing management of the properties until their sale.
We apply the same specialised investment process to selling properties as we do to their acquisition. Our real estate portfolio is regularly reviewed to determine whether the economic and location-specific opportunities and risks, or portfolio factors, suggest it is an opportune time to sell.
Irrespective of this, the fund manager concerned always keeps in mind the individual needs of investors arising from their accounting and supervisory environments.