Sale of interest in French retail assets

RNS Number : 6651D

Schroder Eur Real Est Inv Trust PLC

01 February 2018

 

1 February 2018

 SALE OF INTEREST IN FRENCH RETAIL ASSETS

Schroder European Real Estate Investment Trust Plc ("SERE" or the "Company"), the company investing in European growth cities, announces that the Casino Group, the French retailer, has exercised a buy-back option on SERE's 70% share in two retail assets in France. The sale price reflects a 10% premium to current valuation.

SERE acquired the grocery retail assets, in Biarritz and Anglet, in June 2016 by way of a joint venture, acquiring 70% of the investments and the vendor Mercialys, a subsidiary of Casino Group, retaining a 30% interest. The sale price of SERE's 70% interest equates to €44.8 million. Under the option, the re-purchase will exercise on 31 July 2018.  The Casino Group will take over SERE's share of the existing debt facility on the assets which amounts to €18.2 million and hence the net equity proceeds to SERE from the sale are approximately €26.6 million.

Following the disposal, SERE will have a combined equity and debt investment capacity of approximately €70 million and as stated at the Full Year Results, SERE continues to advance discussions on a number of acquisitions within its identified pipeline and remains confident of achieving full deployment in the short term.

Enquiries:

Duncan Owen/Jeff O'Dwyer

Schroder Real Estate Investment Management Limited                 Tel: [phone]

Louise Richard

Schroder Investment Management Limited                                   Tel: [phone]

Dido Laurimore/Richard Gotla/Ellie Sweeney                                Tel: [phone]

FTI Consulting   

 

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