Disposal of Cedar House, Fleet

RNS Number : 1499G

Schroder Real Estate Inv Trst Ld

26 June 2012

 



26 June 2012

Schroder Real Estate Investment Trust Limited

(the 'Company' / 'Group')

FURTHER DISPOSAL OF LOW YIELDING OFFICE INVESTMENT

Schroder Real Estate Investment Trust Limited announces that it has simultaneously exchanged and completed contracts to sell Cedar House on Ancells Business Park in Fleet to an owner occupier.  The sale price of £1 million compares to the independent valuation as at 31 March 2012 of £0.8 million. 

The property comprises 13,343 sq ft of which 7,609 sq ft is let to Design IT Solutions Limited, with the remainder vacant. The tenant's lease expires in June 2016, with a break option in June 2014, and is currently subject to a rent free expiring December 2012, when the rent increases from nil to £66,415 per annum. 

The price reflects a yield, on expiry of the rent free period, of 6.3%, reducing to approximately 3.4% after non-recoverable expenditure associated with the vacant space.

Commenting, Nick Montgomery of Schroder Property Investment Management Limited said:

"This transaction represents a further disposal of a low yielding asset and closely follows last week's announcement regarding the sale of a low yielding industrial estate in Havant for £4.6 million.  These disposals are consistent with the Company's strategy of selling lower yielding assets, on completion of our asset management plans, to strengthen its balance sheet in anticipation of the loan re-financing event in July 2014."

-ENDS-

For further information:

Schroder Property Investment Management Limited Duncan Owen / Nick Montgomery	020 7658 6000
FTI Consulting Dido Laurimore / Daniel O'Donnell	020 7831 3113

 

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