SEB Asset Management has acquired an office building in Lodz, Poland, for its SEB ImmoPortfolio Target Return Fund mutual fund (ISIN: DE0009802314). The seller is Philips Polska Sp. Z o.o., a subsidiary of Royal Philips Electronics. The parties agreed not to disclose the purchase price. The Philips Building constructed in 2006 has total rental space of 6,534 m². Originally planned by Philips as its European Service Center, today the class-A property is used by Infosys Technologies Ltd. It has been let to the business IT services provider, whose clients include Philips, until at least 2012.

The property’s address – Aleja Pilsudskiego 22 – is centrally located and has good transport connections, with tram and bus stops in the immediate vicinity. Lodz’s main railway station is 1,000 meters away, and it is 6 kilometers to the airport. The Galeria Lodzka shopping center is located directly opposite the property, and a pedestrian zone with shops, cafés and restaurants can be reached on foot.

Despite the varied types of use, the neighbourhood of Aleja Pilsudskiego is dominated by office buildings. The area looks set to remain a strong office location in the future.

With a population of almost 40 million, Poland was by far the largest country to join the EU in 2004. Its economy is booming: in 2007 Poland increased its gross domestic product (GDP) by 6.4%, and GDP growth of 5.5% is expected for 2008. Market observers also expect stimuli from the European Football Championship, which will be hosted by Poland and the Ukraine in 2012. History has shown that UEFA competitions boost the hosts’ economy by 0.3% to 0.5% during the year of the tournament.

Lodz – the second-largest city in Poland – was once the hub of the textile industry. Over the years, the "Manchester of Poland” has become the region’s cultural, scientific and economic center. In 1997 a special economic zone was established, attracting numerous international investors including Philips, IBM, AMG, Bosch, Gillette, Dell, Accenture, Microsoft, GE and Coca-Cola. As a result, modern office buildings are in high demand.

Lodz is the second acquisition in Poland for SEB ImmoPortfolio Target Return Fund. This latest transaction means that the portfolio now comprises 30 properties in ten countries with real estate assets of around €637 million. SEB Asset Management has been investing in Poland for its open-ended real estate fund since 2005, and will shortly be further increasing its exposure there.