Schroder Eur Real Est Inv Trust PLC Acquisition of Netherlands data centre (4354F)
February 21 2018 - 1:00AM
UK Regulatory
TIDMSERE
RNS Number : 4354F
Schroder Eur Real Est Inv Trust PLC
21 February 2018
21 February 2018
SCHRODER EUROPEAN REIT ACQUIRES NETHERLANDS DATA CENTRE FOR C.
EUR20MN
Schroder European Real Estate Investment Trust plc ("SERE"), the
company investing in European growth cities, has completed the
acquisition of a data centre in Apeldoorn, the Netherlands, for
approximately EUR20 million. The acquisition reflects an attractive
net initial income yield of 10%. SERE has now fully deployed all of
its capital currently available for investment in a ten asset
portfolio, located in growth cities and regions that are benefiting
from the favourable Eurozone economic outlook.
The 23,700 sqm mixed use building's primary usage is a data
centre, with additional office and storage space. The building was
extensively refurbished in 2006 and 2015 and includes 495 parking
spaces. It is let to a strong covenant, KPN NV, a leading Dutch
telecom and IT service provider, with an initial term expiring 31
December 2026 and subject to annual indexation.
Apeldoorn is strategically located in the centre of the
Netherlands, at the intersection of the North-South and East-West
motorway axis. Just 75km from Amsterdam, it is expected to be a
beneficiary of the growing trend of back-office relocation by
information and communications technology businesses (ICT), with
rents currently 30% of those in Amsterdam and a deep IT related
employment pool.
Supporting SERE's growth cities strategy, GDP for the Apeldoorn
region is forecast to grow at 1.6% over the next four years(1) ,
ahead of domestic GDP growth. Its population growth has seen a
steady upward trend since the 1960s, outperforming a number of
other similarly sized cities over the same period.
Apeldoorn represents the tenth acquisition by SERE, which has
now invested approximately EUR235 million at a blended net initial
yield of approximately 6.5%, in established Western European growth
cities.
Jeff O'Dwyer, Fund Manager at Schroder REIM, commented:
"This acquisition demonstrates our ability to leverage
Schroders' in-country investment expertise and identify assets that
fit with our investment strategy, being accretive to income and
offering a number of value-enhancing asset management initiatives,
in fast-growing European cities and growth industries.
"Following the announcement that Casino Group has exercised an
option to buy back two of our low yielding retail assets at a 10%
premium to valuation, we are now working on opportunities to
redeploy this capital when the sale completes in July 2018. With a
robust pipeline in place and a favourable market backdrop, we look
forward to the rest of 2018 with confidence."
Enquiries:
Duncan Owen/Jeff O'Dwyer
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
FTI Consulting
Dido Laurimore/Richard Gotla/ Ellie Sweeney Tel: 020 3727
1575
(1) Source: Oxford Economics, December 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
STRBUGDDIXDBGIG
(END) Dow Jones Newswires
February 21, 2018 02:00 ET (07:00 GMT)
Schroder European Real E... (LSE:SERE)
Historical Stock Chart
From Apr 2024 to May 2024
Schroder European Real E... (LSE:SERE)
Historical Stock Chart
From May 2023 to May 2024