Disposal

RNS Number : 6295C

Schroder Real Estate Inv Trst Ld

03 May 2012

 





3 May 2012

Schroder Real Estate Investment Trust Limited

(the 'Company' / 'Group')

DISPOSAL OF PLANTATION PLACE, LONDON EC3

Schroder Real Estate Investment Trust Limited announces that it has sold its 28.9% stake in One Plantation Place Unit Trust ('OPPUT'), the owner of Plantation Place, London EC3, realising net proceeds of £11.73 million. The disposal of the Company's stake forms part of a larger transaction where 100% of the units in OPPUT have been sold. 

The Company's investment in OPPUT was held at nil in its latest Net Asset Value ('NAV') announcement, made on 25 April 2012, as at that point there was no certainty that the disposal would complete. 

If reflected in the Company's NAV as at 31 March 2012, the net proceeds would generate a 7% uplift, taking it from £167 million, or 46.9 pps ('pence per share'), to £178.7 million, or 50.2 pps.  The proceeds sit outside of the loan security pool and increase total cash held by the Company to £38.7 million.  In addition, the transaction reduces the Company's overall net loan to value ratio from 41% to 38%.

Andrew Sykes, Chairman of the Company, said:

"Realising the investment in Plantation Place was identified as a key initiative to be implemented by Schroders following its appointment as investment manager in January 2012.  As well as being significantly accretive to NAV, the proceeds of the disposal provide the Company with increased operational flexibility to pursue its key strategic objectives of improving dividend cover and achieving balance sheet efficiency."

-ENDS-

For further information:

Schroders Property Investment Management Limited Duncan Owen / Nick Montgomery	020 7658 6000
Northern Trust David Sauvarin	01481 745529
FTI Consulting Dido Laurimore / Daniel O'Donnell	020 7831 3113

 

END

 

 

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