Disposal of Olympic Office Centre, Wembley

For release [16] September 2014 Schroder Real Estate Investment Trust Limited (the `Company' / `Group') Disposal of Olympic Office Centre, Wembley The Company announces that it has exchanged unconditional contracts with Network Stadium Housing Association Limited (`Network') to dispose of the Olympic Office Centre in Wembley for £15.4 million, reflecting a net initial yield of 6.7%. The price compares to the independent valuation as at 30 June 2014 of £10.75 million. Network, a tenant in the building, has paid a 10% deposit and completion is due on 19 December 2014 to coincide with expiry of its lease. The Company will continue to receive Network's rent equating to £514,000 per annum during the period between exchange and completion. Network is a leading provider of affordable housing to Brent Council and intends to pursue a mixed use office and residential redevelopment scheme on the site. The 74,000 sq ft Olympic Office Centre is currently let to three tenants, including Network, and produces a total rent of £1.09 million per annum. All of the leases within the building expire on or before 24 February 2015. Completion of the Network disposal in December will conclude the successful asset management and disposal strategy at Wembley that involved the Company securing outline planning consent in September 2013 for 400,000 sq ft of residential and student accommodation on the two acre car park adjoining the Olympic Office Centre. In tandem with this the Company also secured detailed planning consent for additional car parking at the Olympic Office Centre that, whilst not implemented, preserved future flexibility. The combined disposal proceeds of the Network disposal and the recent transactions with The Unite Group plc and Barratt Developments PLC total £38.3 million which compares with the combined independent valuation in June 2013, immediately prior to securing the planning consents, of £16.5 million. Over this period the Olympic Office Centre and sites generated a total rent of £1.09 million per annum, meaning that redeploying proceeds into new investments should enhance earnings. Since acquisition of the property in July 2004 for £8.4 million the Olympic Office Centre and sites produced a property level total return of 19.5% per annum, compared with the Investment Property Databank (`IPD') Benchmark Index over the same period of 4.1% per annum. -ENDS- For further information: Schroder Property Investment Management Limited: 020 7658 6000 Duncan Owen / Nick Montgomery Northern Trust: 01481 745529 David Sauvarin FTI Consulting: 020 3727 1000 Dido Laurimore / Nina Legge
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