Disposal

RNS Number : 9983F

Schroder Real Estate Inv Trst Ld

22 June 2012

 



22 June 2012

Schroder Real Estate Investment Trust Limited

(the 'Company' / 'Group')

DISPOSAL OF LOW YIELDING INDUSTRIAL INVESTMENT AND DEVELOPMENT SITE

Schroder Real Estate Investment Trust Limited announces that it has exchanged contracts to sell the Solent Road Industrial Estate in Havant for an aggregate price of £4.6 million.  This compares to the independent valuation as at 31 March 2012 of £4.5 million.  The aggregate price equates to a net initial yield of 4.6%, reducing to 3.7% after non-recoverable expenditure. 

The property comprises a 3.1 acre development site, currently generating £0.06 million of rental income per annum, which is being sold for £1.43 million and a well let trade counter unit, producing £0.16 million per annum, which is being sold for £3.17 million.  The property will be acquired by one purchaser through two acquisition contracts.

The disposal of the development site is due to complete on 2 July 2012 and the Company has the potential to receive overage payments of up to £0.5 million if the buyer secures more than 20,000 sq ft of retail planning consent within two years of completion.  The trade counter unit is due to complete no later than 29 September 2012 and the Company will continue to receive rental income prior to completion.  The Company is in possession of a 10% deposit against each contract.   

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

"This disposal at a small premium to the latest valuation is consistent with the Company's strategy of selling lower yielding assets, on completion of our asset management plans, to position 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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