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Semi-annual Report as of 30 June 2016

SEB Konzept Stiftungsfonds

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 11

Structure of Fund assets 11

Liquidity 11

Investment performance 11

Overview: Returns and Valuation 13

Portfolio Structure 14

Outlook 15

Overview of Assets 16

Statement of Assets, Part I: Property Record 18

Statement of Assets, Part II: Liquidity Portfolio 20

Statement of Assets, Part III: Other Assets, Liabilities and Provisions, Additional Disclosures 21

Notes in Accordance with Section 7 no. 9 of the KARBV 22

Fund Bodies 25

Graphics

Types of use of Fund property 14

Remaining lease terms 14

SEB Konzept Stiftungsfonds – Semi-annual Report as of 30 June 2016 2

SEB Konzept Stiftungsfonds at a Glance as of 30 June 2016

1) The estimated gross rental corresponds to the estimated net rental plus incidental expenses.2) Based on the Fund’s average property assets financed by equity3) Based on the Fund’s average liquid assets 4) Calculated according to the BVI method5) The redemption of unit certificates is subject to a redemption fee of up to 3% of the unit value in accordance with section 9 of the Special Fund Rules (BAB).6) Total costs as a percentage of average Fund assets in a financial year, calculated as of 31 December 2015. The amount of the TER is explained on page 24.

This Semi-annual Report, the Sales Prospectus available separately, as well as the Annual Report as of 31 December 2015, are to be handed to investors in SEB Konzept Stiftungsfonds units until the publication of the Annual Report as of 31 December 2016.

German Securities Code Number: SEB7M9 ISIN: DE000SEB7M96 Fund launch date: 15 July 2013

Fund assets EUR 14.6 million

Total property assets (market values) EUR 18.1 million

thereof held directly EUR 18.1 million

Total Fund properties 1

Changes during the period under review –

Letting rate (estimated gross rental) 1) 100.0%

Letting rate (estimated net rental) 100.0%

Distribution on 15 April 2016 EUR 0.7 million

Distribution per unit EUR 5.50

Total property return 2) for the period 1 January 2016 – 30 June 2016 4.5%

Liquidity return 3) for the period 1 January 2016 – 30 June 2016 0.0%

Investment performance 4) for the period 1 January 2016 – 30 June 2016 3.7%

Unit value / redemption price 5) EUR 114.53

Issuing price EUR 117.97

Total expense ratio (TER) 6) 1.77%

3 SEB Konzept Stiftungsfonds – Semi-annual Report as of 30 June 2016

Siegfried A. Cofalka and Axel Kraus

Editorial

Dear investor,

SEB Konzept Stiftungsfonds generated an annual perform-ance of 8.2% as of 30 June 2016. As a result, the cumulative return since the Fund was launched on 15 July 2013 amounts to an impressive 27.1%.

Investors again benefited from the solid cash flow from leas-ing in financial year 2015. On 15 April 2016, they received a distribution of EUR 5.50 per unit (EUR 702,267.50 in total), as in the previous year.

Effective 1 January 2016, CACEIS Bank Deutschland GmbH, Munich, is the new Depositary for SEB Konzept Stiftungs-fonds. It is the depositary for several open-ended real estate funds. The change was approved by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin – Federal Financial Supervisory Authority). This did not result in any costs for investors.


Concept and Investment Strategy

SEB Konzept Stiftungsfonds is designed as a high-yield fund with stable value investments. This is based on the gradual development of a diversified portfolio of properties with different types of use at various locations in Europe, combined with an active, sustainable fund management approach.

SEB Konzept Stiftungsfonds’ investment focus is on traditional European core markets. Europe benefits from high market liquidity and transparency as well as a robust regulatory frame-work. When selecting investments, the Fund’s management favours high-quality real estate with a broad mixture of highly creditworthy tenants. Sustainable fund management means examining and optimising efficiency, environmental friendliness and maintenance of the properties for tenants throughout the entire holding period.

The main focus of the investment strategy is on European office properties. An essential decision-making criterion when selecting a property is the stable ongoing cash flow it gener-ates. The standard practice of indexing leases allows income to be adjusted regularly in line with inflation. The target size of the individual properties is between EUR 15 million and EUR 40 million. This means that it is possible to diversify the portfolio sufficiently even during the Fund’s launch phase. In order to keep the Fund fungible, the size of the investment is geared towards transaction volumes on the real estate market in question. The average holding period for Fund properties has been set at seven to ten years. The portfolio is rounded off by selected logistics and retail properties. The Fund’s man-agement will also take selective advantage of opportunities to supplement the property portfolio from a strategic perspec-tive, thus enhancing the Fund’s earnings power.

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 (bottom-up approach).

SEB Konzept Stiftungsfonds’ strategic 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.

A target debt ratio (leverage) of up to 30% at Fund level is one of the strategic parameters of the Fund concept. Loans are used primarily for tax optimisation and to hedge currency risks. At the same time, debt finance must be carefully aligned with the cash flows from the individual properties and with the Fund’s financial structure. Fixed interest rate periods and loan maturities are aligned with the income structure and planned holding period of the properties, expected interest rate devel-opments and the Fund’s performance.

The currency risk with property investments in foreign curren-cies 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 management ensures that foreign currency items are hedged in accordance with statu-tory requirements and the product’s risk profile.

Distributions are planned once a year with the aim of paying out all income minus costs to investors. With a low to medium risk profile, the target return for SEB Konzept Stiftungsfonds is between 4% and 5% p. a.


Risk Management

Risk management is a continuous, integral process that cov-ers 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 oppor-tunities. The risk management process employed by Savills Fund Management GmbH (formerly SEB Investment GmbH) consists of a risk strategy and the identification, analysis and assessment, management and monitoring, and commu-nication 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 spe-cific 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 can-not 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 cur-rency risk.

Interest rate risk

The liquidity portfolio is exposed to interest rate risk and influ-ences the Fund return. If market interest rates change in rela-tion to the rate applicable when the investment was made, this will affect prices and yields for the investment and lead to fluctuations.

However, these price movements vary depending on the invest-ment duration. Fixed-interest securities with shorter maturities entail lower price risks than fixed-interest securities with longer maturities. By contrast, fixed-interest securities with shorter maturities generally have lower returns than fixed-interest 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 mini-mise 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. If loans are terminated early, there is a risk of early repayment penalties.

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, repay-ments and proceeds from such investments in the relevant 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 low-risk cur-rency strategy. Thus, in addition to taking out loans in the rele-vant 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:

W In any investment decision, political, economic and legal risks – including those posed by tax law – should be con-sidered, along with how transparent and well developed the real estate market in question is.

W In decisions to invest outside the eurozone, the volatility of the national currency must be taken into consideration as well. Exchange rate fluctuations and the costs of currency hedging have an impact on the property return.

W 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 vacancies.

W Building quality and condition also have a direct impact on the capacity of a property to generate income. The condi-tion 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.

W Risks posed by fire and storm damage as well as natural forces (such as flooding and earthquakes) are covered internationally by insurance if this is possible, reasonable from a financial point of view and objectively necessary.

W Vacancies and expiring leases can mean either earnings potential or risk. For example, properties with vacancies can deliberately be purchased countercyclically 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 time, vacancies result in income shortfalls and increased costs to enhance the attractiveness of the property for rental.

W The creditworthiness of tenants is also a significant risk component. Poor creditworthiness can lead to high out-standings 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.

W Equity interests in real estate companies, i.e. indirect real estate investments, may be exposed to the risk of changes to company or tax law, particularly abroad.

Market risks specific to real estate, such as letting rates, lease expiries and the performance of the real estate portfolio, are regularly monitored. Appropriate departments are responsible for monitoring performance and the major performance com-ponents, and for financial control of the latter (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 per-formance indicators.

Operational risk

The investment company is responsible for ensuring the orderly 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 opera-tional risks include legal and tax risks, for example.

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 in the short term and the required liquidity must first be obtained through the sale of properties or borrowing, for example.

Risks existing during the reporting period are addressed in the individual chapters.


Real Estate Markets – An Overview

Economic environment

The global economy encountered headwinds in the first half of 2016. Factors increasing uncertainty included the Chinese economy and levels of private indebtedness in the country, the slump in commodities prices and the expected tightening of monetary policy in the USA, as well as political topics such as the refugee crisis in Europe, the EU referendum in the United Kingdom and the elections in the USA. All these impacted global economic growth, which was only muted as a result. The economy picked up slightly in Western Europe but eased in the other parts of the world. At the same time, inflation per-sisted at an extremely low level. Against this backdrop, the trend among central banks across the world towards monetary pol-icy easing was unchanged. For the first time in their history, the ECB and the Japanese central bank also resorted to negative key interest rates to supplement quantitative easing.

The British voted in June 2016 to leave the EU (“Brexit”), although it is currently unclear when this will actually happen and to what it extent it will affect future trade relationships. This uncertainty will significantly impact the United Kingdom’s pros-pects and will also affect other countries, depending on how close their links are. As a result, growth forecasts will see another downward revision in the near future.

Therefore, the blip in global growth that has already been fore-cast for 2016 is like to be more pronounced than previously expected. Equally, there are question marks surrounding the slight uptick in the economy in 2017, which depends primarily on the USA and the emerging markets. Inflation is likely to rise marginally on the back of the slight recovery in oil and com-modities prices, although it will remain low overall. Conse-quently, monetary policy in Europe should ease further, while the USA is likely to postpone its forthcoming interest rate increase towards 2017. For the same reasons, Asian countries also have room for further monetary and fiscal policy meas-ures designed to support their economies. Apart from Brexit, there are risks relating to a hard landing in China and a debt crisis in the emerging markets. To these must be added the US presidential elections and Europe's fragile banking system.

Global real estate markets

The situation on the leasing markets continued to improve in the year to date, although momentum was less pronounced as a result of the increased uncertainty. Overall vacancies on the leading property markets declined slightly, while prime rents rose moderately on average, although individual markets were not always in line with this. In keeping with the macroeconomic indi-cators, the largely positive trend is expected to continue on many markets, albeit at a lower level. Depending on their number, corporate relocations associated with Brexit could have a positive effect on some Continental European markets (espe-cially Paris and Frankfurt).

Activity on the global investment market eased in the first half of 2016, although it remained pretty robust. Transaction

volumes in North America rose year-on-year, but declined in Europe and Asia-Pacific. Investors were looking for greater security in view of the challenging environment. However, ini-tial yields for prime properties continued to decline on many markets due to a lack of products. Given the lack of alterna-tives, the reduction in yields also spread to peripheral and regional markets.

Real estate continues to appear attractive worldwide in view of the continued investment pressure being experienced by insti-tutional investors in today’s negative / low interest rate environ-ment and financial market volatility. Since Brexit means that investors will be more cautious for a time, transaction volumes are likely to be down year-on-year at the end of 2016. Conse-quently, there is still downside potential for selected initial yields, even though in some cases they have already reached the lows of 2007. Since both key interest rates and market interest rates are remaining lower for longer than previously anticipated, the trend reversal in initial yields that was expected from 2017 onwards is also likely to be delayed further.

Germany

A moderate but steady economic upturn in Germany was also reflected in growing demand for office space. Vacancies con-tinued to decline in view of the low completion rates. Prime rents increased at almost all top locations, led by Berlin. For 2016 / 2017, economic growth is expected to ease temporarily as a result of Brexit. Nevertheless, the positive trend in office rents is likely to continue provided there is no change in the constellation of limited construction activity and a slight increase in demand.

The German investment market lost momentum in the first six months of 2016. Transaction volumes for all commercial types of use declined, with retail properties seeing the strongest fall. Although domestic institutional investors were the most active group of buyers, foreigners remained the dominant force despite lower sales levels. Prime yields at top locations in Germany continued to decline. Since the German market is attractive, there is scope for a further decline in yields, although this is likely to be increasingly limited in certain submarkets.

United Kingdom

The UK economy grew slightly in the first half of the year, although both the leasing and the investment markets were dominated by the EU referendum. As a result, demand for office space lost momentum in the first six months of this year, although it remained comparatively robust. Prime rents recorded a further rise but eased slightly in parts of London. The vote to leave the EU has led to sharp downward revisions for growth forecasts for the United Kingdom. Both a clear blip in the economy and temporary recessionary tendencies seem possible. The negative impact on the leasing market will be ex acerbated by the fact that the construction cycle has started. In addition, enterprises are discussing relocating some of their operations.


Following a record volume in 2015, activity on the UK investment market in the first half of the year dropped sharply, led by London. While this must be seen in the context of the EU ref-erendum, the drop is considerably smaller than the slump in 2008 / 2009. Overseas investors were the most important buy-ers, both in absolute and in relative terms. Although prime yields both in London and in regional locations remain lower than last year in some cases, the decline has slowed somewhat recently. At present, a slight increase in initial yields can be expected. In the meantime, though, the UK market is becoming more attractive from a US and Asian perspective in particular because of the sharp drop in the value of sterling.

France

The French economy is recovering at a moderate pace. How-ever, this trend is expected to weaken again as a result of Brexit and the terrorist attacks. Office market take-up picked up somewhat thanks to a number of major deals. As a result, prime rents increased marginally on some Parisian submarkets, whereas regional markets saw little movement. Rent trends in France are likely to be muted in 2016 / 2017, led by Paris.

After a record 2015, investment activity in France also decreased markedly in the first half of 2016. Investor focus increasingly shifted back to office properties. The decline in prime yields slowed, with yields at some locations remaining stable.

Benelux

The economy in the Benelux countries picked up further and should also see moderate growth in 2016 / 2017. Leasing demand declined somewhat recently with the exception of Luxembourg. Investor interest is focused on high-quality properties in established locations. Prime rents were largely stable, although a small rise was recorded in parts of Amster-dam. Since the economic upturn is expected to continue unbroken, vacancies will probably decline slightly. However, these are still pretty high in some cases (and especially the Netherlands) despite the continuing trend towards office space conversions; as a result, only established office loca-tions are expected to see (limited) rental growth.

After the Benelux countries recorded record investment mar-ket results in 2015, these also cooled off in the first half of 2016. Nevertheless, the trend in activities remained extremely robust, with demand for office and logistics properties in par-ticular still putting in a lively performance. At the same time, initial yields eased. This trend seems set to continue given the relatively attractive prices.

Italy

Italy has experienced a muted but steady upturn in growth since 2015, and this is set to continue in 2016 / 2017. The office leasing markets have picked up tangibly over the past quarters, helped by the recent rent corrections. However, expectations of rent increases in 2016 / 2017 remain subdued because of the high level of vacancies. The situation for Italy’s

retailers is also improving, even though the forecast increase in sales for the coming years is below the European average. Nevertheless, demand from international chains in particular for high-visibility prime locations – including in some cases in the larger regional cities – remains unchanged.

Italy remains attractive to investors in real estate ahead of a potential recovery and due to the better yields. Following a record result in 2015, transaction volumes in the first half of the year were down only slightly on the prior-year period. Investor interest has shifted from office to retail properties. Nevertheless, prime yields on the leading office markets continued to retreat. However, political and economic risks mean there is a danger that Italy will become less attractive to foreigners.

Northern Europe

The economy in Northern Europe was mixed. Although highly robust in Sweden, it cooled off in Norway as a result of the oil price while only moderate signs of an upswing were discern-ible in Finland for structural reasons. This was also reflected in divergent trends on the leasing markets. In Sweden, prime rents are expected to record a further slight increase whereas, conversely, in Norway they could come under pressure due to a large number of completions. Prime-sector rents in Helsinki should stabilise in view of the record low volume of new space coming onto the market.

Transaction volumes in Northern Europe exceeded 2007 lev-els in 2015 and also remained strong in the first half of the year. The decline in Norway was more than offset by the other countries. Consequently, initial yields continued to fall. There is scope in the short term for a prolonged if limited decline in yields in Northern Europe.

Central / Eastern Europe

Central and Eastern Europe has now regained its position as one of Europe’s fastest-growing regions. Only in Hungary was the upswing dampened by special factors.

The positive environment is reflected in growing demand for office space, although this is being hampered in some cases by substantial additions of new space and the general trend in rents. This applies to Warsaw in particular. Given the recent decline in rents, demand is focusing on new, modern office space. However, since this often entails a switch from “old” space that then becomes vacant, the existing high vacancy rates are in danger of rising further in view of the large number of completions expected. As a result, both prime and average rents in Warsaw are expected to remain under pressure.

Transaction activity in Central and Eastern Europe remains lively. Poland was the main focus in the first half of 2016, while investment activity in the other countries eased. However, ini-tial yields declined across all markets. This trend is likely to continue to a moderate extent throughout the year as a whole.


USA

US economic growth has slowed since mid-2015, and most recently was below the historical average. Since a modest recovery is expected for the second half of the year, growth should be back on trend in 2017.

Rental activity on the office markets cooled off somewhat, but remained robust. Vacancy rates continued to decline and rents increased slightly, led by markets in the Midwest and on the West Coast (San Francisco, Los Angeles). The recovery in rents is likely to slow further due to the low level of growth and increased construction activity. To date, the retail sector has lagged behind the office markets here, primarily for structural reasons (e-commerce). The slight upturn is expected to continue in 2017 given the strong labour market and consumer data.

After 2015 transaction volumes reached their highest level since 2008, investment activity lost steam in the first half of 2016. Only the apartment sector recorded a rise year-on-year. Never-theless, initial yields declined steadily in most markets and sec-tors. Only a few secondary locations bucked the trend. This situation is not expected to change overall, although there is little room for a further decline in yields.

Asia-Pacific

The economy in the Asia-Pacific region recorded a mixed per-formance and has tailed off since mid-2015. Nevertheless, growth is still approximately 3% higher than that seen in the industrialised nations. Although export risks have risen as a result of Brexit’s negative effect on Europe, stable growth is still expected for the region in 2016 / 2017. The economic slowdown in China will be offset by other countries. A moder-ate, yet stable upturn is expected in Japan and Australia. Singapore is expected to experience a blip in growth in 2016 / 2017, due above all to export-related factors.

Despite the gloomy economic environment, the situation on the region’s office markets has improved in most cases and a large number of locations saw a slight rise in office rents. However, these declined in Singapore and certain secondary markets in China that are experiencing an oversupply of office space as a result of increased construction activity. Although sentiment in the Asia-Pacific retail sector has improved some-what overall, leasing demand was uneven and muted overall. The latter situation applies in particular to Singapore, where retail rents also declined against the backdrop of a weaker sales trend and increasing cost pressure. The leasing markets in the Asia-Pacific region will gain momentum in line with eco-nomic growth, although in some cases to a lesser extent than previously supposed. Australia and Japan are expected to remain at the forefront of this trend. Developments in China are expected to be mixed, while rents in Australian locations connected to the raw materials sector will remain under pres-sure. Equally, office and retail rents in Singapore are not expected to stabilise until 2017 / 2018.

Investment market activity in the Asia-Pacific region also tailed off in the first half of the year, following record levels at the end of 2015. Overall, the decline recently covered all types of use, although it was most pronounced in the retail sector. Singapore, Hong Kong, Taiwan and India bucked the trend to record an increase in transaction volumes. This was mostly due to large individual sales in the office sector. In China, development activity – which is dominated by the residential sector – was the main area to see a recovery. Transaction volumes in Japan also declined, although demand from domestic investors was still extremely robust. Initial yields on most property markets in the region fell, albeit less strongly and in a more differen-tiated fashion. This mixed trend is likely to continue in the region in 2017.


Results of the Fund in Detail

Development of SEB Konzept Stiftungsfonds

Structure of Fund assets

SEB Konzept Stiftungsfonds’ Fund assets decreased by EUR 0.2 million in the reporting period from 1 January to 30 June 2016 due to the distribution on 15 April 2016, and amounted to EUR 14.6 million as of the reporting date. The number of units in circulation remained unchanged at 127,685.

Liquidity

The gross liquidity ratio as of the reporting date was 9.42%; all liquid assets were held as demand deposits at the end of the reporting period.

Further information on the liquidity portfolio, loans and provi-sions can be found in the “Disclosures on the Overview of Assets” section on page 16 onwards.

Investment performance

The Fund generated a total performance of 3.7% over the reporting period, or EUR 4.13 per unit.

1) Short financial year from 15 July 2013 to 31 December 2013

Return according to the BVI method

Note: Calculated according to the BVI method (without front-end load; distributions reinvested immediately). Historical performance data are no indication of future performance.

Reporting date 31 Dec. 2013

EUR thousand

1)


EUR thousand


EUR thousand

Reporting date 30 June 2016

EUR thousand

Properties 16,540 17,850 17,975 18,085

Liquidity portfolio 804 1,383 1,638 1,377

Other assets 1,142 1,097 977 937

Less: liabilities and provisions – 5,450 – 5,823 – 5,791 – 5,775

Fund assets 13,036 14,507 14,799 14,624

Number of units in circulation 127,685 127,685 127,685 127,685

Unit value (EUR) 102.09 113.61 115.90 114.53

Distribution per unit (EUR) 0.75 5.50 5.50 –

Date of distribution 30 April 2014 2 April 2015 15 April 2016 –

Unit value as of 30 June 2016 EUR 114.53

Plus distribution on 15 April 2016 EUR 5.50

Minus unit value on 1 January 2016 EUR – 115.90

Investment performance EUR 4.13

Return in %

Return in % p.a.

Current year 3.7

1 year 8.2 8.2

Since launch 27.1 8.3


Overview of loans as of 30 June 2016

Breakdown of loan volumes by fixed interest rate period as of 30 June 2016

Currency

Loan volume (direct) in EUR

in % of property

assets

Fixed interest

rate term

EUR loans (Germany) 4,961,907 27.4 2.4 years

Total 4,961,907 27.4 2.4 years

Fixed interest rate term

EUR loans Loan volume

in EUR

Total loans Loan volume

in EUR

2 – 5 years 4,961,907 4,961,907

Total 4,961,907 4,961,907


Overview: Returns and Valuation

The property generated gross income of 3.9% in the period under review. Management costs reduced this figure by 0.7%. The changes in value of 0.4% comprise the changes in the value of the portfolio property according to the expert opinions.

Income from properties after borrowing costs amounted to 4.5%. The debt ratio amounted to 27.4% (see the “Overview of loans” table on page 12). At Fund level, the total income before Fund costs was 4.0%.

1) The weighted average figures in the first half of the financial year are calculated using seven month-end values (31 December 2015 to 30 June 2016).

2) Based on the Fund’s average property assets in the period under review3) Based on the Fund’s average property assets financed by equity in the period under review4) 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 89.50%.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 10.50%.

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

the valuers. Gross profit in this case equates to the sustainable net basic rent estimated by the valuers.

10) Total changes in market values established by the valuers11) Other changes in value consist of the amortisation of capitalised transaction costs.

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

I. Properties

Gross income 2) 3.9

Management costs 2) – 0.7

Net income 2) 3.2

Changes in value 2) 0.4

Foreign income taxes 2) 0.0

Foreign deferred taxes 2) 0.0

Income before borrowing costs 2) 3.6

Income after borrowing costs 3) 4.5

Exchange rate differences 3) 4) 0.0

Total income in Fund currency 3) 5) 4.5

II. Liquidity 6) 7) 0.0

III. Total Fund income before Fund costs 8) 4.0

Total Fund income after Fund costs (BVI method) 3.7

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

Directly held properties 18,149

of which equity-financed property assets 13,187

Loan volume 4,962

Liquidity 1,547

Fund volume 14,734

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

Portfolio market values (expert opinions) 18,085

Portfolio rental valuations (expert opinions) 9) 1,293

Positive changes in value acc. to expert opinions 10) 110

Other positive changes in value 11) 0

Negative changes in value acc. to expert opinions 10) 0

Other negative changes in value 11) – 45

Total changes in value acc. to expert opinions 10) 110

Total other changes in value 11) – 45

Total changes in value 65


Industrial (warehouses, halls)

Office

Car park

0% 50% 100%

94.3%

4.6%

0.0%

98.2%

1.1%

1.8%

2022

2023

2024

2025

2026 +

indefinite

0% 50% 100%

0.0%

100.0%

0.0%

0.0%

0.0%

0.0%

Hamburg

Frankfurt am Main

Hanover

Munich

WolfsburgBerlin

Germany

Town / city with investment

Portfolio Structure

As of 30 June 2016, the portfolio comprised one directly held property in Germany. The Fund has property assets totalling approximately EUR 18.1 million.

Based on their market values, 100.0% of property assets were invested in Germany as of the reporting date.

100.0% of property assets were invested in a property that was completed in 2013. In terms of types of use, based on the esti-mated net rental for the year, the dominant use for the portfolio is industrial (warehouses, halls), which accounted for 94.3%.

Types of use of Fund property

Basis: By estimated net rental for the year By rental space

Letting

The letting rate for SEB Konzept Stiftungsfonds as of the reporting date was 100.0% of the estimated net rental and 100.0% of the estimated gross rental. The average letting rate during the period under review was 100.0% of the esti-mated net rental and 100.0% of the estimated gross rental.

At present, 100.0% of the leases have a term of more than five years, a fact that safeguards SEB Konzept Stiftungsfonds’ stability and earnings power.

Remaining lease terms

Basis: estimated net rental for the year

Top property

Wolfsburg, Lehmkuhlenfeld 13

Top tenant

Rudolph Automotive Logistik GmbH, Wolfsburg, Lehmkuhlenfeld 13

Allocation of Fund properties by value class

EUR 10 – 25 million 100.0%

Basis: market value

Economic age distribution of Fund property

up to 5 years 100.0%

Basis: market value

Geographical distribution of Fund properties

Germany 100.0%

Basis: market value

Tenant structure by sector

Automotive and transport 100.0%

Basis: by rental space and by total estimated net rental


Outlook

Savills Fund Management GmbH has been part of the Savills Investment Management Group since 1 September 2015. The combined company operates under the Savills Investment Management name. The new ownership structure has led to a strategic change of direction. Since Savills Investment Man-agement focuses on institutional clients and the special funds segment, it has been decided not to continue with SEB Konzept Stiftungsfonds. Initial steps towards marketing the Fund’s only property have been taken.

The logistics property in Wolfsburg was constructed at the end of 2013 and is full leased for the long term to a highly credit-worthy contract logistics provider to the automotive and supplier industry. It is well situated and has been awarded a silver DGNB certificate by the German Sustainable Building Council (DGNB) for its high quality. The property’s market value has already risen sustainably during its short life.

The aim is to use the liquidity generated from the sale to pay out the proceeds to investors, after adjustment for the neces-sary reserves for the fund’s dissolution.

We offer you our warmest thanks for the confidence you have shown in us.

Savills Fund Management GmbH

Cofalka Kraus

Frankfurt am Main, August 2016


Overview of Assets as of 30 June 2016

Disclosures on the Overview of Assets

Fund assets decreased by EUR 0.2 million to EUR 14.6 mil-lion in the first half of the financial year from 1 January to 30 June 2016.

A. Overview of assets

I. Properties

The commercial property is included in the Fund assets at the market value calculated by the external valuers.

II. Liquidity portfolio

The bank deposits reported under the liquidity portfolio item serve to meet ongoing payment obligations in connection with the management of the property.

III. Other assets

Receivables from real estate management comprise expenditures relating to service charges that are allocable to tenants.

Transaction costs comprise the ancillary costs relating to the acquisition of the property. The item consists of those ancillary costs that had not yet been amortised at the reporting date.

EUR EUR EUR

% of Fund

assetsGermany

EUR

A. Overview of assets

I. Properties

(see Statement of Assets Part I, page 18f.)

1. Commercial properties 18,085,000.00 18,085,000.00

of which in foreign currency 0.00

Total properties 18,085,000.00 123.66 18,085,000.00

Total in foreign currency 0.00

II. Liquidity portfolio

(see Statement of Assets Part II, page 20)

1. Bank deposits 1,377,475.58 1,377,475.58


Total liquidity portfolio 1,377,475.58 9.42 1,377,475.58


III. Other assets

(see Statement of Assets Part III, page 21)

1. Receivables from real estate management 130,002.52 130,002.52


2. Transaction costs

for properties 806,940.35 806,940.35


3. Miscellaneous 412.49 412.49


Total other assets 937,355.36 6.41 937,355.36


Total assets 20,399,830.94 139.49 20,399,830.94



Transaction costs include property purchase tax, costs of legal advice, court costs and notary fees, property agent fees and due diligence costs, as well as valuer fees and construction and purchase fees. They are amortised in equal annual amounts over ten years.

B. Liabilities

I. Liabilities

Liabilities from loans refer to a loan of EUR 5.0 million taken out to acquire the property. Please see the tables on page 12 for further information on the loan term and the fixed interest rate period.

Liabilities from land purchases and construction projects are the result of outstanding payment obligations relating to

the acquisition of the property in the amount of EUR 34.6 thousand.

The miscellaneous item mainly includes EUR 41.1 thousand in sales tax liabilities to the fiscal authorities and EUR 12.3 thousand in liabilities from management and depositary fees.

II. Provisions

Provisions were recognised for construction services and main-tenance (EUR 409.5 thousand), for non-allocable operating costs (EUR 254.8 thousand) that have not yet been invoiced and for costs associated with the preparation of the annual and semi-annual reports (EUR 61.2 thousand).

EUR EUR EUR

% of Fund

assetsGermany

EUR

B. Liabilities

I. Liabilities from

(see Statement of Assets Part III, page 21)

1. Loans 4,961,907.00 4,961,907.00


2. Land purchases and construction projects 34,650.00 34,650.00


3. Miscellaneous 53,449.49 53,449.49


Total liabilities 5,050,006.49 34.53 5,050,006.49


II. Provisions 725,540.24 4.96 725,540.24


Total liabilities 5,775,546.73 39.49 5,775,546.73


C. Fund assets 14,624,284.21 100.00 14,624,284.21


Unit value (EUR) 114.53

Units in circulation 127,685


Type of property:C = Commercial property

Project / portfoliodevelopment measures:Po = Portfolio development measurePr = Project development measure

Features:D = District heatingA = Air conditioning / auxiliary coolingG = Goods lift

P = Passenger liftS = Sprinkler systemH = Hot water (central / decentralised)C = Central heating

Statement of Assets as of 30 June 2016, Part I: Property Record

Location of property Type of use (as a % of estimated net rental)

Area in m2 Property data Letting Property performance Results of 1st and 2nd valuers

Typ

e o

f p

rop

erty

Pro

ject

/ po

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lio

dev

elo

pm

ent

mea

sure

s

Off

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Ret

ail /

cat

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g

Ind

ustr

ial (

war

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uses

, hal

ls)

Ho

tel

Res

iden

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ure

Car

par

k

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er

Acq

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tion

dat

e

Year

bui

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vate

d

Site

are

a in

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Co

mm

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al

Res

iden

tial

Num

ber

of

par

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sp

aces

Fea

ture

s

Pro

per

ty q

ualit

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tion

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go

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Num

ber

of

tena

nts

Ave

rag

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le

ase

term

s in

yea

rs

Rem

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s ex

pir

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in

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nex

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in %

Vaca

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rate

in %

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ated

gro

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l

1. and 2. Valuers: Market value / purchase price (at the reporting date) in EUR

3. Amount recognised in accordance with section 249 of the KAGB (at the reporting date) in EUR Tr

ansa

ctio

n co

sts

in E

UR

of

whi

ch f

ees

and

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in E

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whi

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in E

UR

Tota

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cost

s in

%

of

pur

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rice

Tran

sact

ion

cost

s am

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ised

in

the

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f o

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ear

in E

UR

Tran

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cost

s st

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in E

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Exp

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d r

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ion

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ears

Deb

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% o

f am

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t

reco

gni

sed

in a

cco

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ith

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249

of

the

KA

GB

Gro

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rofit

in E

UR

Rem

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yea

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I. Directly held properties in eurozone countries

Germany

38444 Wolfsburg 1. 18,070,000 1. 1,293,413 47.75

Lehmkuhlenfeld 13 2. 18,100,000 2. 1,293,413 47.75

C – 5 0 94 0 0 0 1 0 11 / 2013 2013 60,729 31,599 0 63 A, S, H, C 3 G 1 – – 0.0 3. 18,085,000 1,092,271 744,286 347,985 6.6 54,434 806,940 7.4 27.4 – –

Total properties 18,085,000 54,434 806,940

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

Type of use

Part of building Skeleton construction / timbering / frame

Solid construction Windows Roofs Sanitary installations Interior wall finishing of wetrooms

Floor coverings Interior doors Heating Electrical fittings Installations and other fittings

Office simple Simple walls, wooden / sheet metal / fibre cement siding

Brickwork with plaster or combined bedding and pointing and paint

Wood, single glazing Corrugated fibre cement / sheet metal roofing, bitumen / plastic film seal

Small number of basic toilet facilities, surface-mounted fittings

Oil-based paintwork Wooden floorboards, needle felt, linoleum, PVC, wetrooms: PVC

Panel framed doors, painted leaves and frames

Individual stoves, electric stor-age heating, boilers for hot water

One lighting outlet and 1–2 surface-mounted sockets per room

n.a.

medium Lightweight concrete walls with thermal insulation, con-crete sandwich elements, 12 – 25 cm infill

Thermal insulation plaster / composite system, exposed brickwork with combined bedding and pointing and paint, medium thermal insulation standard

Wood, plastic, insulation glazing

Concrete roof tiles, medium ther-mal insulation standard

Adequate number of toilet facilities, flush-mounted fittings

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

Plastic / wooden leaves, steel frames

Central heating with radiators (gravity hot water system)

1–2 lighting outlets and 2–3 sockets per room, IT facili-ties, surface-mounted fittings

n.a.

high High-density concrete plates, faced brickwork, clinker, up to 30 cm infill

Faced brickwork, metal siding, curtain facade, high thermal standard

Aluminium, shutters, solar shading system, thermal protection glazing

Clay roof tiles, slate / metal covering, high thermal insulation standard

Good quality toilet fittings Floor-to-ceiling tiles Large tiles, parquet, cast stone, wetrooms: large tiles, special coated tiles

Leaves with high-quality wood veneer, glass doors, wooden frames

Central heating / pumped heating system with flat radia-tors, central water heating

Several lighting outlets and sockets per room, sill trunking with IT cabling

n.a.

very high Glass siding, over 30 cm infill Natural stone Floor-to-ceiling glazing, large sliding panels, electric shutters, sound-proof glazing

Large number of skylights, elabo-rate roof extensions and roof heightening, glass roof cut-outs

Generous toilet facilities with sanitary facilities, high standard

Natural stone, elaborately laid

Natural stone, elaborately laid, wetrooms: natural stone

Solid construction, intruder pro-tection, wheelchair-enabled, automatic doors

Underfloor heating, air conditioning and other HVAC systems

Elaborate fittings, security facilities

n.a.

Retail simple Simple walls, wooden / sheet metal / fibre cement siding


Wood, steel, single glazing Corrugated fibre cement / sheet metal roofing, bitumen / plastic film seal


Oil-based paintwork Wooden floorboards, linoleum, PVC, wetrooms: PVC

n.a. Individual stoves, electric storage heating, boilers for hot water

Basic surface-mounted fittings n.a.




Concrete roof tiles, medium thermal insulation standard


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

n.a. Warm air heating units, warm air heating units connected to central boiler system, district heating

Adequate flush-mounted fittings n.a.




Clay roof tiles, slate / metal cover-ing, prefabricated glass concrete elements, web concrete planks, high thermal insulation standard

Generous toilet facilities with good-quality fittings

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

n.a. Central heating / pumped heating system with flat radia-tors, central water heating


n.a.

Logistics simple Simple walls, wooden / sheet metal / fibre cement siding



Basic toilet facilities, small number of showers, surface-mounted fittings

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 facili-ties, sink





Adequate toilet facilities, several showers, some surface-mounted fittings

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


Location category:A = Central business district (CBD)B = Other city centre locationsC = Local office centreD = Commercial estateE = City centre (1a)

F = Solo location (shopping centre)G = Established logistics locationH = Other locationsI = Urban district centre

Property quality:1 = Very high2 = High3 = Medium4 = Simple

Location of property Type of use (as a % of estimated net rental)

Area in m2 Property data Letting Property performance Results of 1st and 2nd valuers

Typ

e o

f p

rop

erty

Pro

ject

/ po

rtfo

lio

dev

elo

pm

ent

mea

sure

s

Off

ice

Ret

ail /

cat

erin

g

Ind

ustr

ial (

war

eho

uses

, hal

ls)

Ho

tel

Res

iden

tial

Leis

ure

Car

par

k

Oth

er

Acq

uisi

tion

dat

e

Year

bui

lt / r

eno

vate

d

Site

are

a in

m2

Co

mm

erci

al

Res

iden

tial

Num

ber

of

par

king

sp

aces

Fea

ture

s

Pro

per

ty q

ualit

y

Loca

tion

cate

go

ry

Num

ber

of

tena

nts

Ave

rag

e re

mai

ning

le

ase

term

s in

yea

rs

Rem

aini

ng le

ase

term

s ex

pir

ing

in

the

nex

t 12

mo

nths

in %

Vaca

ncy

rate

in %

of

estim

ated

gro

ss r

enta

l

1. and 2. Valuers: Market value / purchase price (at the reporting date) in EUR

3. Amount recognised in accordance with section 249 of the KAGB (at the reporting date) in EUR Tr

ansa

ctio

n co

sts

in E

UR

of

whi

ch f

ees

and

ta

xes

in E

UR

of

whi

ch o

ther

co

sts

in E

UR

Tota

l tra

nsac

tion

cost

s in

%

of

pur

chas

e p

rice

Tran

sact

ion

cost

s am

ort

ised

in

the

first

hal

f o

f th

e fin

anci

al y

ear

in E

UR

Tran

sact

ion

cost

s st

ill t

o b

e am

ort

ised

in E

UR

Exp

ecte

d r

emai

ning

am

ort

isat

ion

per

iod

in y

ears

Deb

t ra

tio in

% o

f am

oun

t

reco

gni

sed

in a

cco

rdan

ce w

ith

sect

ion

249

of

the

KA

GB

Gro

ss p

rofit

in E

UR

Rem

aini

ng u

sefu

l lif

e in

yea

rs

I. Directly held properties in eurozone countries

Germany

38444 Wolfsburg 1. 18,070,000 1. 1,293,413 47.75

Lehmkuhlenfeld 13 2. 18,100,000 2. 1,293,413 47.75

C – 5 0 94 0 0 0 1 0 11 / 2013 2013 60,729 31,599 0 63 A, S, H, C 3 G 1 – – 0.0 3. 18,085,000 1,092,271 744,286 347,985 6.6 54,434 806,940 7.4 27.4 – –

Total properties 18,085,000 54,434 806,940

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

Type of use

Part of building Skeleton construction / timbering / frame

Solid construction Windows Roofs Sanitary installations Interior wall finishing of wetrooms

Floor coverings Interior doors Heating Electrical fittings Installations and other fittings

Office simple Simple walls, wooden / sheet metal / fibre cement siding




Oil-based paintwork Wooden floorboards, needle felt, linoleum, PVC, wetrooms: PVC

Panel framed doors, painted leaves and frames

Individual stoves, electric stor-age heating, boilers for hot water

One lighting outlet and 1–2 surface-mounted sockets per room

n.a.




Concrete roof tiles, medium ther-mal insulation standard


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

Plastic / wooden leaves, steel frames

Central heating with radiators (gravity hot water system)

1–2 lighting outlets and 2–3 sockets per room, IT facili-ties, surface-mounted fittings

n.a.




Clay roof tiles, slate / metal covering, high thermal insulation standard

Good quality toilet fittings Floor-to-ceiling tiles Large tiles, parquet, cast stone, wetrooms: large tiles, special coated tiles

Leaves with high-quality wood veneer, glass doors, wooden frames

Central heating / pumped heating system with flat radia-tors, central water heating

Several lighting outlets and sockets per room, sill trunking with IT cabling

n.a.

very high Glass siding, over 30 cm infill Natural stone Floor-to-ceiling glazing, large sliding panels, electric shutters, sound-proof glazing

Large number of skylights, elabo-rate roof extensions and roof heightening, glass roof cut-outs

Generous toilet facilities with sanitary facilities, high standard

Natural stone, elaborately laid

Natural stone, elaborately laid, wetrooms: natural stone

Solid construction, intruder pro-tection, wheelchair-enabled, automatic doors

Underfloor heating, air conditioning and other HVAC systems


n.a.

Retail simple Simple walls, wooden / sheet metal / fibre cement siding


Wood, steel, single glazing Corrugated fibre cement / sheet metal roofing, bitumen / plastic film seal


Oil-based paintwork Wooden floorboards, linoleum, PVC, wetrooms: PVC

n.a. Individual stoves, electric storage heating, boilers for hot water

Basic surface-mounted fittings n.a.






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

n.a. Warm air heating units, warm air heating units connected to central boiler system, district heating

Adequate flush-mounted fittings n.a.




Clay roof tiles, slate / metal cover-ing, prefabricated glass concrete elements, web concrete planks, high thermal insulation standard

Generous toilet facilities with good-quality fittings

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

n.a. Central heating / pumped heating system with flat radia-tors, central water heating


n.a.

Logistics simple Simple walls, wooden / sheet metal / fibre cement siding



Basic toilet facilities, small number of showers, surface-mounted fittings

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 facili-ties, sink





Adequate toilet facilities, several showers, some surface-mounted fittings

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


Disclosures on the Property Record

The property record on the preceding pages contains information on the property requiring further explanation.

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 business in accordance with the legal situation and actual characteristics, the other attributes and the location of the property, disre-garding unusual or personal factors. The valuation procedure

is based on the German income approach (Ertragswertver-fahren), 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 once a quarter by external, pub-licly certified and sworn valuers.

The long-term gross profit corresponds to the rental valuations determined by the external valuers 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 rep-resents 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 opin-ion may differ from the actual estimated position. Rather, it provides a current estimate of a property’s long-term earnings power.

Statement of Assets as of 30 June 2016, Part II: Liquidity Portfolio

Market value EUR

% of Fund assets

Bank deposits

Germany 1,377,475.58

Total liquidity portfolio 1,377,475.58 9.42


Statement of Assets as of 30 June 2016, Part III: Other Assets, Liabilities and Provisions, Additional Disclosures

EUR EUR EUR % of Fund

assets

I. Other assets

1. Receivables from real estate management 130,002.52


of which advance payments for operating costs 130,002.52

2. Transaction costs

for properties 806,940.35


3. Miscellaneous 412.49


Total other assets 937,355.36 6.41


II. Liabilities from

1. Loans 4,961,907.00


of which short-term loans (section 199 of the KAGB) 0.00

2. Land purchases and construction projects 34,650.00


3. Miscellaneous 53,449.49


Total liabilities 5,050,006.49 34.53


III. Provisions 725,540.24 4.96


Total Fund assets 14,624,284.21 100.00


Unit value (EUR) 114.53

Units in circulation 127,685


Notes in Accordance with Section 7 no. 9 of the Kapitalanlage-Rechnungslegungs- und Bewertungsverordnung (KARBV – German Investment Accounting and Valuation Regulation)

Other information

Unit value as of 30 June 2016: EUR 114.53 Units in circulation as of 30 June 2016: 127,685

Information on the asset valuation procedure

Real estate

General principles of property valuation The company appoints sufficient numbers of external valuers (“valuers”) to appraise properties, land rights and similar rights governed by the law of other countries (“properties”), or prop-erties that were acquired for the account of the fund.

The valuers must take into account the provisions of national law and the fund rules for the fund in question, and must per-form the scheduled valuations. The valuers are required to value in particular:

W the properties to be purchased for funds or for real estate companies in which the company holds an interest for the account of funds;

W the properties held by the fund or by real estate companies in which the company holds an interest for the account of funds;

W the properties to be sold by funds or by real estate compa-nies in which the company holds an interest for the account of funds.

To the extent that the company does not commission an earlier valuation, the valuations are performed by the valuers who were assigned responsibility for this at the least in accordance with the regular cycle specified in the fund rules for the funds in question.

Properties are recognised at their purchase price at the time of transfer of ownership / of the risks and rewards of owner-ship. Further details on valuation are contained in the provisions of the Kapitalanlagegesetzbuch (KAGB – German Investment Code) and the KARBV, and, where applicable, in other national provisions.

Value concept and valuation methods The market value of a property is the price that would be obtained at the time the calculation is made, in the normal course of business, in accordance with the legal situation and actual characteristics, the other attributes and the location of the property, disregarding unusual or personal factors.

As a rule, to calculate the market value / fair value, the valuer must determine the net income value of the property using a procedure that is recognised on the real estate market in question. Other valuation methods that are recognised on the real estate investment market in question may additionally be used to review the reasonableness of the valuation if the valuer regards this as necessary and / or appropriate to ensure the

proper valuation of the property. In this case, the valuer must state the results of the other valuation method and give his or her reasons for using it in a clear and comprehensible manner in the valuation report.

In general, the market value of a property is calculated by deter-mining the net income value of the property using the allge-meine Ertragswertverfahren (general net income value method) in accordance with the Immobilienwertermittlungsverordnung (German Real Estate Valuation Regulation). This method involves determining the attainable market rental income and adjusting it downwards for management costs, including maintenance and administration costs, and a notional figure representing the risk of lost rental income. The net income value corresponds to the net rental income computed in this way, multiplied by a factor (present value factor) that reflects the typical market rate of interest for the property being valued, taking into account the location, the condition of the building and its remaining useful life. Any special factors affecting the value of a property can be taken into account by means of appropriate premiums or discounts.

A market value / fair value must also be determined as a gen-eral rule for properties under construction during the construc-tion phase. Construction services are recognised at book value to the extent that they have not been accounted for in the property valuation. On completion, the appraised market value must be used.

In the appraisal, the valuer must give an opinion on the quality of the property and the location, the regional real estate mar-ket, the legal and physical characteristics of the property, and its usability and lettability. The appraisal must specify whether there is a large enough pool of potential buyers and users for the appraised property and whether the property’s earnings power can be guaranteed in the long term due to its adequate third-party usability and versatility. Expected income shortfalls and investments in modernisation measures that are fore-seeable or necessary at the time of valuation to secure the esti-mated income must be taken into account in an appropriate manner. If the valuer does not include a discount for mainte-nance backlogs or renovation because of provisions that have already or will be recognised in the Fund, the valuation report must provide a factual justification as to why no such discount was charged. The key valuation inputs – and in particular the capitalisation rate derived from the current market environment and the current attainable market rents for the property – must be clearly stated and explained.

Pre-purchase valuations and regular valuations The pre-purchase valuation is performed by valuers in line with the fund rules for the fund in question. As a rule, the date of this valuation should not be more than three months before the notarisation date for the purchase.

The regular valuation and unscheduled valuations of assets as defined by sections 231(1) and 234 of the KAGB were per-formed by valuers in line with the rules for the fund in question.


If the valuations in line with the rules for the fund in question are performed by two valuers who are independent of each other and arrive at differing market values, the arithmetic mean of the two figures shall be recognised as the value of the asset.

The value of the assets as defined by sections 231(1) and 234 of the KAGB must be determined within the period specified in the rules for the fund in question. The first regular valuation must be performed within the appropriate deadlines, starting from the date of transfer of the risks and rewards of ownership or the completion of the construction project.

Valuations are generally spread evenly over the fund’s valuation cycle unless local GAAP or the fund rules for the fund in ques-tion require a valuation as of the end of the financial year.

Unscheduled revaluations The value of the properties must always be recalculated and the new amount recognised if the company believes that the most recently determined value is no longer appropriate due to changes in material valuation factors. The following are exam-ples of possible material valuation factors:

W the effects of natural disasters such as floods, fires, volcanic eruptions, hurricanes, earthquakes, or landslides;

W land contamination that is discovered after acquisition;

W legal issues, such as the loss of rights due to expropriation in accordance with section 95(1) sentence 1 of the Bauge-setzbuch (BauGB – German Building Code), the signing, extension, or termination of leases, or tenant insolvencies;

W other factors such as changes in the market environment or damage to the property / extraordinary investments.

Valuation dates and frequency of valuations The value of each property is determined in line with SEB Konzept Stiftungsfonds’ rules. As far as possible, valua-tions are spread out evenly over the year to avoid a cluster of valuations on certain dates. If changes in material valuation factors occur for a particular property, a revaluation may be con-ducted ahead of schedule. If a heritable building right has been created in respect of a property, the valuers must re assess the property within two months.

Other assets, liabilities and provisions

Bank deposits Bank deposits are valued at their nominal amount plus accrued interest.

Receivables Receivables from property management and other receiv-ables are included at their nominal amount. The recoverability of receivables is reviewed on a regular basis. Default risk is accounted for using valuation allowances and writedowns.

Transaction costs Transaction costs incurred by the Fund when acquiring a prop-erty or equity interest are amortised in equal annual amounts over the expected holding period of the property, but at the longest over a period of ten years. The amortisation charged reduces the Fund’s capital and is not recognised in profit or loss. If the property is resold within the amortisation period given in sentence 1, the transaction costs must be written off in full.

Transaction costs are also capitalised in the case of transac-tions where the buyer or a third party completes the property on their own responsibility and at their own risk and the Fund therefore does not incur typical developer risks.

In order to ensure the equal treatment of direct and indirect property acquisitions, the capitalisation and amortisation of transaction costs in the statements of assets of real estate companies under investment law should, as a rule, be carried out in the same way as prescribed by law at the Fund level (explanatory memorandum for section 10 of the KARBV).

In the case of directly held properties and equity interests, transaction costs still to be amortised are included as a notional figure in the statement of assets and thus in the Fund assets.

Transaction costs not yet amortised remain as a notional figure in the real estate company where they were incurred. They are then recognised during the valuation of the equity interest in this real estate company and do not constitute a separate item of the Fund’s statement of assets. Any necessary adjustments of the amortisation charged to the amounts already recog-nised in the local GAAP financial statements for the real estate company concerned are also recognised in the statement of assets as part of the reconciliation process.

In more detail, the treatment of transaction costs is based on section 30(2) no. 1 of the KARBV.

Liabilities Liabilities are recognised at their repayment amounts. Key liabilities include loans from third parties, liabilities from land purchases and construction projects, and liabilities from real estate management.

Recognition and measurement of provisions Provisions are recognised and measured in accordance with prudent business judgement.

They may not be discounted. They must be reversed when the reason why they were recognised no longer exists.

Provisions can also be established in the context of planned measures / budgeting (e. g. for maintenance measures, man-agement costs, litigation and services utilised).


Information on transparency and the total expense ratio

The total expense ratio is calculated annually. The figure for the period from 1 January 2015 to 31 December 2015 was 1.77% of the average net asset value of the Fund. It repre-sents the ratio of Fund management costs such as the Fund management fee, the Depositary fee, external valuer costs and other expenses in accordance with section 11 of the Special Fund Rules (BAB) to average net Fund assets in the reporting period. Transaction costs are not taken into account in the calculation.

No performance-based remuneration was paid.

In the reporting period, a management fee of EUR 65,941.04 was paid to the investment company and a Depositary fee of EUR 1,480.99 was paid to the Depositary.

The investment company does not receive any reimburse-ments of the fees and expenses paid to the Depositary and third parties from the Fund assets.

The investment company pays trailer fees to brokers from the fees paid to it by the Fund.

Information on material changes in accordance with section 101(3) no. 3 of the KAGB

No new rules governing liquidity management were introduced during the reporting period.

Additional Information

The information on leverage presented here was determined in accordance with Article 7 of Regulation (EU) No 231 / 2013 in conjunction with Article 19 of Directive 2011 / 61 / EU and is based on the net asset value of the Fund.

Leverage according to the gross method expressed in relation to the original maximum ratio of 3.0 amounted to 1.30 as of the reporting date. Leverage according to the commitment method expressed in relation to the original maximum ratio of 3.0 amounted to 1.39 as of the reporting date.

However, the leverage can fluctuate depending on market conditions, meaning it may exceed the maximum amount set by the company despite being monitored on a continuous basis.

The leverage ratio of 27.4% reported in the “Overview of loans” table on page 12 expresses the ratio of loans taken out to property assets.

For information on the fund’s risk profile, please see the “Risk Management” section of the Fund Management Report on page 6 onwards.

No less-liquid assets were ascertained in the Fund.


Fund Bodies

Investment Company

Savills Fund Management GmbH Rotfeder-Ring 7, 60327 Frankfurt am Main, Germany Phone: +49 69 2 72 99 - 1000 Fax: +49 69 2 72 99 - 090 Subscribed and paid-up capital EUR 5.113 million Liable capital EUR 8.691 million (as of 30 June 2016) Frankfurt am Main Commercial Register, HRB 29859 Established: 30 September 1988

Management

Siegfried A. Cofalka Axel Kraus

Supervisory Board

Luke Justin O’Connor Chief Executive Officer, Savills Investment Management LLP, Stockholm, Sweden – Chairman –

Dr. Anton Heinrich Wiegers Winterbach, Germany – Deputy Chairman –

Dr. Stefan Frank Zeranski Professor of Financial Services and Financial Management, Bergisch Gladbach, Germany

Auditors

PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Frankfurt am Main

Shareholders

TOMASO Verwaltung GmbH (6%) Savills Fund Management Holding AG (94%)

Depositary

CACEIS Bank Deutschland GmbH Lilienthalallee 34 –36 80939 Munich (since 1 January 2016)

External Valuers

Bernd Fischer-Werth, Dipl.-Ing., Dipl.-Wirtsch.-Ing. Publicly certified and sworn expert for the valuation of developed and undeveloped properties, Wiesbaden

Klaus Peter Keunecke, Dr.-Ing. Publicly certified and sworn expert for the valuation of rents and developed and undeveloped properties, Berlin

Ulrich Renner, Dipl.-Kfm. Publicly certified and sworn expert for the valuation of developed and undeveloped properties, Wuppertal

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

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


savillsim.com

Investment Company:Savills Fund Management GmbHRotfeder-Ring 760327 Frankfurt am Main, GermanyPhone: +49 69 2 72 99 - 1000Fax: +49 69 2 72 99 - 090

Sales: Savills Fund Management GmbHRotfeder-Ring 760327 Frankfurt am Main, Germany

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