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Schroder Real Estate Investment Trust Ltd - activity managed UK-focused real estate investment trust - Disposes of Nottingham offices for GBP13 million, at a 39% premium to December 31's valuation of GBP9.4 million. Reflects a net initial yield of 4.5%. Expects completion on February 28.
Offices bring in net rent of GBP622,210 per annum, with a weighted average unexpired lease term of 1.7 years. Based on price of disposal, offices have generated total ungeared return of 12.1% pa since acquisition, outperforming All Property MSCI Benchmark of 5.4% pa for the same period, and 3.5% MSCI All Offices benchmark.
Fund Manager Nick Montgomery said: "This sale demonstrates our ability to leverage the expertise of sector specialists to generate strong returns for shareholders. Having completed our business plan for this well-located asset, we see attractive opportunities to redeploy the capital which, alongside the company's pipeline of ongoing asset management activity, should support SREIT's ambition to deliver a progressive and sustainable dividend."
Schroder REIT will announce its net asset value as of December 31 in the week which starts February 28.
Current stock price: 54.00 pence, down 1.3% on Friday
12-month change: up 36%
By Elizabeth Winter; elizabethwinter@alliancenews.com
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