Acquisition

RNS Number : 5390N

Schroder Eur Real Est Inv Trust PLC

01 February 2016

 

1 February 2016

ACQUISITION OF A FREEHOLD RETAIL WAREHOUSE PROPERTY LOCATED

IN BERLIN, GERMANY

Following the listing on 9 December 2015 and the recent exchange of contracts for the acquisition of the Boulogne-Billancourt (Paris) office investment, the Board of Schroder European Real Estate Investment Trust Plc (the "Company") announces the Company's second exchange of contracts for the purchase of a €24.25 million freehold retail warehouse property located in Germany's capital, Berlin, at a net initial yield of 6.2%. The asset is fully income producing and let to a leading DIY specialist, on a triple net basis with an unexpired lease term of c. 10 years. The site is in excess of 4 hectares in an established and growing southern suburb of Berlin. The micro location benefits from a broad range of uses including residential, business, industrial and retail trade.

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

"We are delighted to have secured the Company's second investment soon after launch. The acquisition is fully in line with the strategy to deliver long term sustainable income in major cities with a strong bias to France and Germany".

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

"Across our business we have been active investors in Berlin, driven by our conviction of its growth potential relative to the domestic economy. The addition of this retail warehouse in such a dynamic city to our first investment in Paris could not be a better start for the Company in building a high quality, diversified portfolio in growth markets".

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 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]

 

END

 

 

ACQEAPFNAFLKEFF