Disposal of Olympic Office Centre, Wembley

For release [16] September 2014

Schroder Real Estate Investment Trust Limited
(the `Company' / `Group')

 

Disposal of Olympic Office Centre, Wembley

The Company announces that it has exchanged unconditional contracts with
Network Stadium Housing Association Limited (`Network') to dispose of the
Olympic Office Centre in Wembley for £15.4 million, reflecting a net initial
yield of 6.7%. The price compares to the independent valuation as at 30 June
2014 of £10.75 million.

Network, a tenant in the building, has paid a 10% deposit and completion is due
on 19 December 2014 to coincide with expiry of its lease. The Company will
continue to receive Network's rent equating to £514,000 per annum during the
period between exchange and completion. Network is a leading provider of
affordable housing to Brent Council and intends to pursue a mixed use office
and residential redevelopment scheme on the site.

The 74,000 sq ft Olympic Office Centre is currently let to three tenants,
including Network, and produces a total rent of £1.09 million per annum. All of
the leases within the building expire on or before 24 February 2015.

Completion of the Network disposal in December will conclude the successful
asset management and disposal strategy at Wembley that involved the Company
securing outline planning consent in September 2013 for 400,000 sq ft of
residential and student accommodation on the two acre car park adjoining the
Olympic Office Centre. In tandem with this the Company also secured detailed
planning consent for additional car parking at the Olympic Office Centre that,
whilst not implemented, preserved future flexibility.

The combined disposal proceeds of the Network disposal and the recent
transactions with The Unite Group plc and Barratt Developments PLC total £38.3
million which compares with the combined independent valuation in June 2013,
immediately prior to securing the planning consents, of £16.5 million. Over
this period the Olympic Office Centre and sites generated a total rent of £1.09
million per annum, meaning that redeploying proceeds into new investments
should enhance earnings.

Since acquisition of the property in July 2004 for £8.4 million the Olympic
Office Centre and sites produced a property level total return of 19.5% per
annum, compared with the Investment Property Databank (`IPD') Benchmark Index
over the same period of 4.1% per annum.

                                    -ENDS-                                     

For further information:

Schroder Property Investment Management Limited:   020 7658 6000               
Duncan Owen / Nick Montgomery                                                  
Northern Trust:                                    01481 745529                
David Sauvarin                                                                 
FTI Consulting:                                    020 3727 1000               
Dido Laurimore / Nina Legge