Schroder Eur Real Est Inv Trust PLC Rent collection and property valuation update (9285C)
October 22 2020 - 4:45AM
UK Regulatory
TIDMSERE
RNS Number : 9285C
Schroder Eur Real Est Inv Trust PLC
22 October 2020
22 October 2020
RENT COLLECTION AND PROPERTY PORTFOLIO VALUATION UPDATE
Schroder European Real Estate Investment Trust plc ("SERE" or
the "Company"), the company investing in European growth cities,
today provides an update on rent collection, alongside a quarterly
independent valuation of the property portfolio as at 30 September
2020.
- Approximately 88% of rent due as at 21 October 2020 has been
collected, which is ahead of the amount collected in the previous
two quarters.
- As at 30 September 2020, the property portfolio was
independently valued at EUR268.6 million, an increase of 9.8%, or
EUR23.9 million, on the 30 June 2020 valuation of EUR244.7
million.
- The valuation increase during the quarter was driven by a
number of successful asset management initiatives across the
portfolio which included:
o 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. As at 30
September, the property is held at a valuation of EUR65.2 million,
which reflects the sale price, less an adjustment for the costs,
risk and process of the refurbishment. The asset was valued at
EUR41.6 million as at 30 June 2020.
o A new five-year lease agreement for a further floor at its
Hamburg office investment, representing c. 10% of the lettable
area. This resulted in a valuation increase of EUR0.6 million.
o SERE's 50% interest in the Seville shopping centre witnessed a
valuation decline of EUR350,000 or 1.6% over the quarter, resulting
in a total valuation decline of 8.6% since the 30 December 2019
valuation (the last quarter not impacted by Covid-19). Recent
successful asset management initiatives, including the expansion of
the supermarket has helped defend further valuation declines.
- The Company remains prudently geared with a loan to value, net
of cash, of approximately 25% as at 30 September 2020, with no debt
maturity before 2023.
In line with previous years, the 30 September 2020 NAV will be
included in SERE's full year results for the year ending 30
September 2020, which will be announced on 9 December 2020. There
will be a live webcast presentation for analysts and investors on
the morning of the results.
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
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