Acquisition

RNS Number : 7875J

Schroder Eur Real Est Inv Trust PLC

22 December 2015

 



22 December 2015

ACQUISITION OF freehold office property located

 in Boulogne-Billancourt (Paris), France

The Board of Schroder European Real Estate Investment Trust Plc (the "Group") is pleased to announce exchange of contracts for the purchase of a €37.5 million freehold office property located in Boulogne-Billancourt (Paris), France at a net initial yield of 5.7%. The asset is fully income producing and has a prominent location in Boulogne-Billancourt, a densely populated and established office area in western Paris. The acquisition is fully in line with the strategy to acquire institutional grade, income producing assets in major cities let off sustainable rents and in supply constrained locations.

Commenting on the acquisition, Sir Julian Berney, Non-Executive Chairman of the Group commented:

"We have secured the Group's first investment soon after launch. The acquisition is fully in line with the strategy to own institutional grade, income producing assets in major cities".

Tony Smedley, Head of Continental European Investment at Schroder REIM commented:

"Paris is the largest and most liquid commercial real estate market in Continental Europe and a key target market of the Group. This is a strong start to the deployment of initial equity and consistent with our strategic objective to acquire assets with growth potential, let off sustainable rents and in supply constrained locations".

The purchase is subject to a waiver of statutory pre-emption rights in the French market and is therefore expected to complete at the end of the March 2016.

Enquiries:

Duncan Owen/Tony Smedley

Schroder Real Estate Investment Management Limited                    Tel: [phone]

Ria Vavakis

Schroder Investment Management Limited                                        Tel: [phone]

 

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