The winding-up process affects LLB Semper Real Estate, an open-end retail fund as defined in the Austrian Real Estate Investment Funds Act [Immobilieninvestmentfondsgesetz/ImmoInvG] in conjunction with the Austrian Alternative Investment Funds Managers Act [Alternative Investmentfonds Manager-Gesetz/AIFMG]. The ISIN numbers affected thereby are: 

• AT0000622980 
• AT0000615158 
• AT0000A0B5Z9 
• AT0000A1Z189 
• AT0000A1Z197 
• AT0000A1Z1A2

In October 2023, LLB Immo KAG was forced to suspend payment of the redemption price of fund units due to the high decline in liquid funds as a result of unit certificate redemptions in the previous months and the current generally challenging environment on the property markets in order to ensure the proper ongoing management of the fund in the interests of investors. In accordance with the statutory requirements the suspension may last for a maximum of 24 months. Despite strong efforts on the part of LLB Immo KAG and the conclusion of 15 sales transactions since the suspension, it has not been possible to achieve sufficient liquidity for fulfilling the orders at hand while, at the same time, observing the statutory minimum liquidity of the fund. After investigating all possibilities and approval from the Austrian Financial Market Authority (FMA) LLB Immo KAG has thus decided to terminate the management of LLB Semper Real Estate on 23 April 2025 by giving six (6) months' notice, thus effective as of 23 October 2025. Winding up of the fund will commence on 24 October 2025 and will be published separately.

This step is being taken to ensure equal treatment of investors, as resuming payment of the redemption price cannot be warranted due to the liquidity situation of the fund.

According to the provisions of the Austrian Real Estate Investment Funds Act winding up must be done as quickly as possible, taking into account the interests of the investors. The complete liquidation is expected to take five years, whereby regular partial distributions will be made based on real estate sales proceeds. For unit certificate holders, this means that they will not be able to receive the full amount invested in the short term.

As part of the winding-up process, LLB Immo KAG will be entrusted with realisation of the fund properties. To that end, LLB Immo KAG will continue to regularly obtain appraisal reports on the remaining real estate from experts in order to ensure realisation on the market at reasonable prices in the coming years.

Realisation of the real estate assets will be done in the coming months and/or years depending on the market situation. The first realisation steps have already been successfully taken in the previous months. The first partial payment is thus expected to be made in Q4/2025. The plan is to regularly distribute the liquidity generated from property sales to the unit certificate holders.

According to the Austrian Real Estate Investment Funds Act the fund must be wound up as quickly as possible, while safeguarding the interests of investors.  The complete winding-up process is expected to take several years, with regular partial distributions being made on the basis of proceeds from real estate sales. For unit certificate holders this means that they will not be able to receive the full amount invested in the short term.

No difference is made between the individual unit certificate classes in terms of payment. Payment and settlement will be carried out independent of the amount of capital invested.

LLB Semper Real Estate is listed on several German stock exchanges. That stock exchange trading is purely a secondary market without the involvement of LLB Immo KAG. LLB Immo KAG has no influence on the quotation on that market.

The ongoing appraisals of real estate will continue as required by law and will be undertaken by independent experts. Sale of the real estate will be completed as quickly as possible in the interests of the unit holders in accordance with the statutory requirements. Losses in value on the sale of the real estate within the framework provided for by law cannot be ruled out in the course of the winding-up process.

In order to ensure proper ongoing management, payment of the redemption price for units of LLB Semper Real Estate has been suspended since 23 October 2023.

In the past two years, numerous real estate sales were initiated to achieve liquidity in LLB Semper Real Estate. As a result 15, properties were successfully sold. However, the sales proceeds were not sufficient for the limited period of time to warrant resuming payment of the redemption price.

Due to the very low demand and a sharp drop in transaction volumes on the property market, fewer property transactions than necessary were concluded. In addition, the restricted lending of the banks to potential buyers had a negative impact on the conclusion of transactions. The properties of LLB Semper Real Estate are primarily commercial properties, which, in the current difficult market environment for real estate with additionally challenging economic framework conditions for companies in Austria and Germany, are even less marketable than residential properties.

The sales orders accumulated and expected to date and the forecast real estate sales until October 2025 indicated that it will not be possible to fulfil all sales orders received until then. LLB Immo KAG thus felt obliged to terminate the management of LLB Semper Real Estate and to wind it up in an orderly manner in order to ensure equal treatment of investors. This enables LLB Immo KAG to sell fund properties in the best interests of the investors.

Investors do not need to take any active steps. Regular partial payments are planned to cover the unit price as part of the winding-up process. It is not necessary to place a sell order to receive these partial payments.

Sell orders that have already been placed will remain in place until the start of the winding-up process in October 2025.

While it is still possible to place sell orders, there will be no execution; partial payments will be made to all investors as part of the winding-up process instead.

No, you do not have to place sell orders. Regular partial payments are planned to cover the unit price as part of the winding-up process. It is not necessary to place a sell order to receive these partial payments.

As part of the sharp rise in real estate returns, real estate values were adjusted to the new market level in the course of regular or special appraisals. The negative appraisal result could only partially be compensated for by the positive management and liquidity result, meaning that the overall fund performance was negative.

Development of performance depends on the ongoing management and sale of properties. Sales are settled on reasonable terms, i.e. properties may also be sold below their appraised value within the regulatory framework. Unfortunately, a prognosis is not possible.

Upon each real property sale the loans attributable to the property will be repaid on a pro-rata basis. The remaining liquidity will be distributed to investors via partial payments.

Due to the very low demand and a sharp drop in transaction volumes on the property market, fewer property transactions than necessary were concluded. In addition, the restricted lending of the banks to potential buyers had a negative impact on the conclusion of transactions. The properties of LLB Semper Real Estate are primarily commercial properties, which, in the current difficult market environment for real estate with additionally challenging economic framework conditions for companies in Austria and Germany, are even less marketable than residential properties. The LLB Semper Real Estate portfolio is well positioned on the basis of key indicators such as occupancy rate and remaining lease terms of the real estate listed in the fund.

It is planned to continue to calculate the fund price (NAV) on every trading day.

The open-end retail fund LLB Semper Real Estate has been investing primarily in commercial properties in Germany and Austria since 2004.

The exact number of investors is not known.

As at 31 March 2025, the fund's volume amounted to EUR 615 million.

Upon publication of the termination, distribution partners were informed of the necessary step and will take over communication with investors.

As at 30 December 2024, LLB Semper Real Estate held 44 properties, of which 28 were in Germany and 16 in Austria.

LLB Immo KAG has set up the email address sre@llb.at and a hotline that can be reached on +43 1 2675210, which affected investors can contact if they have any questions.