Schroder Eur Real Est Inv Trust PLC Acquisition (7661N)
28 October 2016 - 11:00PM
UK Regulatory
TIDMSERE
RNS Number : 7661N
Schroder Eur Real Est Inv Trust PLC
28 October 2016
28 October 2016
ACQUISITION OF AN OFFICE PROPERTY IN PARIS
Following the successful equity placing on 28 October 2016, the
Board of Schroder European Real Estate Investment Trust Plc (the
"Company") announces the exchange of contracts for the purchase of
a EUR30.1 million office property located in Saint Cloud, Paris,
reflecting a net initial yield of 9.5%. The asset is fully income
producing and comprises part of an established office complex in
Saint Cloud, a densely populated mixed use area in the west of
Paris. The new Grand Paris public transport connection will be
completed alongside the building in 2025, which is expected to
provide significantly improved accessibility to this part of
Paris.
The investment is fully in line with the Company's strategy to
acquire income producing assets in winning cities, let off
sustainable rents and in locations that benefit from constrained
supply, multiple competing uses and where there are significant
infrastructure improvements.
Commenting on the acquisition, Sir Julian Berney, Non-Executive
Chairman of the Company commented:
"This is the Company's eighth investment and our second in
Paris, the largest and most liquid commercial real estate market in
Continental Europe. We continue to identify attractive investment
opportunities in our target markets and deploy capital consistent
with strategy. We are pleased to add to our existing office
exposure in Paris and regard this investment as complimentary to
the portfolio, particularly in tenant diversity and at a return
profile that is accretive to income distribution."
The purchase is subject to a waiver of the statutory pre-emption
rights in France and is therefore expected to complete at the end
of December 2016.
Enquiries:
Duncan Owen/Tony Smedley
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
This information is provided by RNS
The company news service from the London Stock Exchange
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