For release
7 March 2019
Schroder Real
Estate Investment Trust Limited
("SREIT"/ the "Company" / "Group")
DISPOSAL OF WICKES
RETAIL WAREHOUSE IN BASINGSTOKE
Schroder Real Estate Investment Trust, the actively managed
UK-focused REIT, announces that it has exchanged unconditional
contracts to sell the Wickes retail warehouse in Basingstoke for
£12 million. The price compares to the independent valuation as at
31 December 2018 of £12.5 million and
reflects a net initial yield of 5.4%. The disposal is scheduled to
complete on 29 March 2019.
The property comprises a modern retail warehouse unit totalling
35,290 sq ft let to Wickes Building Supplies Limited for a further
fourteen years at £692,250 per annum or £19.50 per sq ft. The lease
has upwards only open market rent reviews. Wickes are currently
SREIT’s third largest tenant overall and its largest retail tenant.
Following the disposal of the subject property, it will become the
Company’s fourteenth largest tenant overall with a retail warehouse
in Chester let for 14 years at £400,000 per annum.
Based on the disposal price, the asset has generated an ungeared
total return of 7.5% per annum since acquisition in 2007 compared
with the MSCI Benchmark for the same period of 4% per annum.
The disposal is consistent with SREIT’s strategy to sell lower
yielding retail assets that offer limited upside from asset
management. Following completion of the disposal, and based on the
independent portfolio valuation as at 31
December 2018, SREIT’s consolidated net loan to value falls
from 29% to 27%.
The additional cash, reduced loan to value and undrawn revolving
credit facility provides SREIT with operational flexibility to
monitor the market and consider opportunistic new investments in
the future.
-ENDS-
For further information:
Schroder Real Estate
Investment Management Limited:
Duncan Owen / Nick Montgomery / Frank Sanderson |
020 7658 6000 |
Northern
Trust:
Sean Walsh / James Machon |
01481 745529 |
FTI
Consulting:
Dido Laurimore / Richard Gotla |
020 3727 1000 |