£13m Nottingham Office Disposal

RNS Number : 3639B

Schroder Real Estate Inv Trst Ld

11 February 2022

 

For release 11 February 2022

Schroder Real Estate Investment Trust Limited

("SREIT"/ the "Company" / "Group")

£13M NOTTINGHAM OFFICE DISPOSAL ACHIEVED AT 39% PREMIUM TO VALUATION

Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has exchanged unconditional contracts to sell The Arc, a 44,602 sq ft office in Nottingham. The disposal price represents a 39% premium to the 31 December 2021 independent valuation of £9.35 million and reflects a net initial yield of 4.5%.  Completion is scheduled on 28 February 2022.

Situated on the edge of Nottingham city centre, the Company acquired The Arc in August 2018. The asset produces a net rent of £622,210 per annum with a WAULT of 1.7 years. Based on the disposal price, the asset has generated an ungeared total return of 12.1% per annum since acquisition, compared with the All Property MSCI Benchmark for the same period of 5.4% per annum, and MSCI All Offices for the same period of 3.5% per annum.

SREIT will announce its unaudited Net Asset Value as at 31 December 2021 during the week commencing 28 February 2022.

Nick Montgomery, Fund Manager of SREIT, commented:

"This sale demonstrates our ability to leverage the expertise of sector specialists to generate strong returns for shareholders.  Having completed our business plan for this well located asset, we see attractive opportunities to redeploy the capital which, alongside the Company's pipeline of ongoing asset management activity, should support SREIT's ambition to deliver a progressive and sustainable dividend."

-ENDS-

For further information:

Schroder Real Estate Investment Management Limited: Nick Montgomery / Bradley Biggins / Matthew Riley	020 7658 6000
FTI Consulting: Dido Laurimore / Richard Gotla / Ollie Parsons	020 3727 1000

About Schroder Real Estate Investment Trust

Schroder Real Estate Investment Trust aims to provide shareholders with an attractive level of income together with the potential for income and capital growth as a result of its investments in, and active management of, a diversified portfolio of UK commercial real estate.

The investment policy of the Company is to own a diversified portfolio of UK real estate underpinned by good fundamental characteristics. The Group invests principally in the industrial, office and retail sectors and will also consider other sectors including mixed-use, residential, hotels, healthcare and leisure.

Leveraging the specialist capabilities of Schroders' multi-strategy, 95 strong across the UK team, SREIT employs a hospitality-driven approach to improve the operational performance of its assets, underpinned by a fully integrated ESG strategy, in order to deliver superior shareholder returns.

SREIT is currently paying an annualised dividend of 2.903 pence per share.

 

END

 

 

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