Further Acquisition in Milton Keynes
For release 27 November 2014
Schroder Real Estate Investment Trust Limited
(the `Company')
FURTHER ACQUISITION IN MILTON KEYNES
The Company announces that it has acquired Heathfield Industrial Estate in
Milton Keynes for £5.06 million. The property produces a rent of £410,883 per
annum, reflecting a net initial yield of 7.7% and a reversionary yield,
assuming all units are let at current market rents, of approximately 8.8%. The
property immediately adjoins the 213,536 sq ft Stacey Bushes Industrial Estate
in Milton Keynes that was acquired by the Company in August 2014.
The freehold property comprises a 28 unit industrial estate totalling 104,200
sq ft that was originally built in the late 1980s, with the majority of the
estate benefiting from a recent refurbishment. The current average rent is £
3.94 per sq ft with an average unexpired lease term, assuming the earlier of
lease expiry or tenant break options, of approximately two years.
The acquisition provides critical mass in an established location with 18 of
the 28 units at Heathfield smaller than those available at the adjoining Stacey
Bushes estate. This is expected to create opportunities to add value through
asset management by relocating tenants across the enlarged estate as their
businesses grow or contract.
Following completion of the acquisition and receipt of the net placing proceeds
of approximately £26.5million, the Company will have cash balances of
approximately £43.7 million.
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 / Ellie Sweeney
D
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