Acquisition

RNS Number : 2375P

Schroder Eur Real Est Inv Trust PLC

16 February 2016

 

16 February 2016

ACQUISITION OF TWO FREEHOLD OFFICE INVESTMENTS LOCATED IN STUTTGART AND HAMBURG, GERMANY

The Board of Schroder European Real Estate Investment Trust Plc (the "Company") announces the Company's third investment since listing on 9 December 2015. Contracts have been exchanged for the purchase of two office buildings located in Germany's leading office markets Stuttgart and Hamburg, for a total of €28.9 million at a blended net initial yield of 6.0%. The assets are fully income producing and multi-let to a combination of governmental and private sector tenants, with an average unexpired lease term of c. 8.5 years.  Both properties have either been constructed or substantially refurbished in the last decade, are located in established office sub-markets and are well connected to public transport.

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

"We are delighted to have committed to acquire these office assets located in key German cities. They add important scale, diversification and long income characteristics to the portfolio. Progress in committing the initial equity has been swift and we look forward to growing the portfolio in due course."

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

"These two office investments reinforce our focus on growth cities and regions in the major economies of Continental Europe. Within the first quarter following launch, the Company has committed to acquire four institutional grade office and retail investments, totalling c. €100m in gross value, demonstrating our capability to originate good quality assets at yields consistent with our objectives."

The purchase is subject to a waiver of the local authority's statutory pre-emption right and standard land registry notification and is therefore expected to complete at the beginning of April 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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