Schroder Eur Real Est Inv Trust PLC Lease of additional office space in Hamburg (4130B)
October 08 2020 - 1:00AM
UK Regulatory
TIDMSERE
RNS Number : 4130B
Schroder Eur Real Est Inv Trust PLC
08 October 2020
8 October 2020
SCHRODER EUROPEAN REIT LEASES ADDITIONAL OFFICE SPACE IN
HAMBURG
-Latest asset management success follows transformational c.
EUR104 million disposal of Paris office asset-
Schroder European Real Estate Investment Trust plc ("SERE" or
the "Company"), the company investing in European growth cities,
has completed a new five-year lease agreement for a further floor
at Hammerbrookstraße 94, its Hamburg office investment.
BAM Deutschland, the construction specialist, has taken the 8th
floor which totals 646 sqm (c. 10% of the lettable area), on a five
year lease, which will generate an additional EUR104,500 of annual
contracted rent. The building is now 81% let to a diverse range of
tenants, with the Company having leased five of the seven floors
vacated following the agreement of a lease surrender with the
headline tenant, at a combined rent of 19% above business plan and
12% above the ERV. The commencement of the lease will enhance the
income return for the investment by 0.6% and is expected to have a
positive impact on 30 June 2020 valuation of c. 3% /
EUR600,000.
The modern property is located in Hamburg's fast growing City
Sud district. The submarket's appeal has increased in recent years
as a result of new residential and retail development, whilst the
micro location benefits from its proximity to a number of key
arterial routes and Hammerbrook S-Bahn station, which is one stop
for Hamburg Hauptbahnh, the city's main railway station.
Jeff O'Dwyer, Fund Manager, commented: "Despite the near-term
impact of Covid-19 on occupational activity, we continue to see
demand from a range of tenants for well-located office space across
our target Continental European markets. Following on from the
transformational Boulogne-Billancourt transaction announced last
week, it represents the latest successful example of our Winning
Cities strategy, whilst further improving the portfolio
metrics."
On 1 October 2020, SERE announced it had exchanged contracts to
sell its Boulogne-Billancourt office asset in Paris for
approximately EUR104 million. The sale is structured as a forward
funding, with the building being handed over to the purchaser in H1
2022, following completion of a comprehensive refurbishment which
is being undertaken by the Company. The refurbishment and sale
follows the agreement of a new 10-year pre-let contract with
existing tenant Alten in June this year at a rent 39% higher than
the previous rent paid.
The sale delivers a profit of approximately EUR28 million,
representing c.35% profit on cost and the net sale proceeds
strengthen the Company's balance sheet, providing significant
operational and financial flexibility. The funds will primarily be
redeployed into new earnings enhancing initiatives including new
investments.
Enquiries:
Jeff O'Dwyer / Duncan Owen
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
Dido Laurimore/Richard Gotla/Methuselah Tanyanyiwa
FTI Consulting Tel: 020 3727 1000
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCUBAORRSURRAA
(END) Dow Jones Newswires
October 08, 2020 02:00 ET (06:00 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