Schroder Eur Real Est Inv Trust PLC Acquisition of three industrial properties (3389Y)
August 21 2018 - 2:00AM
UK Regulatory
TIDMSERE
RNS Number : 3389Y
Schroder Eur Real Est Inv Trust PLC
21 August 2018
21 August 2018
ACQUISITION OF THREE NETHERLANDS INDUSTRIAL PROPERTIES FOR EUR20
MILLION
Schroder European Real Estate Investment Trust plc ("SERE" or
the "Company"), the company investing in European growth cities,
announces that it has exchanged contracts to purchase three
industrial assets in the Netherlands for a total purchase price of
EUR19.8 million, reflecting a combined net initial yield of 6.5%,
with a weighted unexpired lease term of approximately 9 years.
-- In Venray, the Netherlands, SERE has acquired a freehold
15,290 sqm warehouse, fully let to logistics specialist De Klok
Logistics, on a new 10 year lease. The Venray / Venlo region sits
next to the German border and the Ruhr region. It is regarded as
one of the premier logistic locations in Europe, providing both
domestic and European distribution capabilities via its excellent
road, rail and ports connectivity.
-- In Houten, in the Utrecht province, SERE has acquired a
modern freehold 9,149 sqm warehouse which is 100% let to Inventum,
a specialist in water heating and boilers, with an unexpired lease
term of 8 years. The property is located in the established de
Meerpaal Business Park, home to more than 100 occupiers from a
cross section of industries. Utrecht is one of the fastest growing
regions in the Netherlands; with both GDP and population expected
exceed national averages[1] and benefits from its central location,
favourable road, rail and port accessibility, education facilities
and position as a major employment hub.
-- SERE has also acquired a modern, 2,500 sqm mixed use building
in Utrecht, fully let on a multi tenanted basis, with an unexpired
lease term of approximately 8 years. The property is located in the
established De Wetering business park, fronting the A-2
motorway.
On completion of the acquisitions, the portfolio will comprise
12 properties with a value of approximately EUR222 million. The
portfolio will generate contracted rents of EUR16.1 million with an
average unexpired lease term to first break and expiry of 5.1 years
and 6.7 years (per end of June 2018). The acquisitions provide
further sector diversification, with the portfolio having the
following allocations; 49% office, 29% retail, 13% industrial and
9% mixed use.
The Company has now redeployed the majority of net proceeds
raised from the July sale of two low yielding Casino supermarkets,
part of the Company's investment strategy to actively manage the
portfolio to grow income and total returns. Along with the Rumilly
logistics acquisition announced in July, the Company has already
replaced 90% of foregone Casino income and has a remaining
investment capacity of approximately EUR15 million.
Completion of the transactions will occur towards the end of
August (Houten) and September (Venray and Utrecht).
Jeff O'Dwyer, at Schroder REIM, commented:
"We have been actively looking to further diversify the
portfolio and increase the Company's allocation to the high growth
industrial and logistics sector. These assets are in established
industrial locations and offer a stable income profile with growth
upside from broader improving city and regional fundamentals. With
prime Dutch logistic yields breaking 4.5% we see value in smaller
lot sizes, particularly in locations where investment and occupier
demand is strong.
"These acquisitions demonstrate our ability to leverage
Schroders' European investment expertise to identify new investment
opportunities and quickly recycle proceeds from disposals,
capitalising on opportunities to realise profit and deliver share
holder value."
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
Dido Laurimore/Richard Gotla Tel: 020 3727 1000
FTI Consulting
[1] Source: Oxford Economics, March 2018
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END
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