SEB German property OEF re-opening may spark others

Several German open-end property funds may re-open in the next few weeks after reviewing the flow of capital since January when they extended their halt to redemptions, nominally until October. SEB Asset Management, a subsidiary of the Swedish banking group and the largest private property OEF manager, is likely to become the lead and the test case. SEB AM said in January it would check capital flows during the second quarter with intention to re-open its main SEB ImmoInvest. "Assuming the positive signals coming from the market continue .. management does not intend to utilise the full statutory suspension period of nine months, but aims to resume redemption in the second quarter of 2009," it said. CEO Barbara Knoflach told media recently that this remains the target. SEB AM has assets under management in mutual real estate funds of e9.2bn, while it also has e2.5bn in institutional funds - mainly Special Fund vehicles - making it the largest private-sector fund manager.