Acquisition

RNS Number : 7010W

Schroder Eur Real Est Inv Trust PLC

28 April 2016

 

28 April 2016

ACQUISITION OF a convenience retail property located in Germany

The Board of Schroder European Real Estate Investment Trust plc (the "Company") announces the Company's fifth investment since listing on 9 December 2015. Contracts have been signed for the purchase of a convenience retail property located in Germany. The asset is a grocery supermarket anchored, multi-let convenience retail centre located in a growing inner urban region of Frankfurt am Main. The asset was built in 2004 and modernised in 2015 and comprises 4,525 sqm of lettable area. The investment is anchored by a 1,600 sqm Lidl supermarket with an initial lease term exceeding 10 years. The combined weighted average unexpired lease term of all leases is approximately 8 years. The investment was acquired for €11.05 million, reflecting a net initial yield of 5.6%. The acquisition is fully in line with the strategy of investing in defensive, income producing assets in major cities with the potential for long term growth.

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

"Acquiring good retail assets in prime German cities is challenging and competitive, hence being able to secure this long let investment within a growing urban area of Germany's financial capital is a credit to our local sourcing capabilities. This investment takes the Company's committed capital deployment to approximately €110 million at a blended net initial yield of approximately 5.9%".

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

"Convenience retail in growth cities is a key target of the Company given its relative resilience in a rapidly changing retail environment. Lidl is the key anchor tenant on this scheme and we have plans to change tenant mix over time to further improve footfall".

The purchase is subject to the standard land registry notification and is therefore expected to complete during June 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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