Schroder Eur Real Est Inv Trust PLC French logistics acquisition (5189U)
01 April 2019 - 5:00PM
UK Regulatory
TIDMSERE
RNS Number : 5189U
Schroder Eur Real Est Inv Trust PLC
01 April 2019
1 April 2019
SCHRODER EUROPEAN REIT PLC INCREASES LOGISTICS EXPOSURE WITH
EUR17.3 MILLION FRENCH ACQUISITION
Schroder European Real Estate Investment Trust plc ("SERE"), the
company investing in European growth cities, has completed the
acquisition of two logistics warehouses near Rennes, in Brittany,
France, for EUR17.3 million, reflecting a net initial yield of
5.9%.
The acquisition was part funded with a new loan facility
totalling EUR8.6 million, which has been secured against the Rennes
property.
Providing 23,852 sqm of institutional quality space across two
adjacent buildings, the property is let on a 12 year lease to
C-Log, the logistics subsidiary of Groupe Beaumanoir, the
international fashion retailer, which has invested significant
capex in equipping the building with automated technology.
The property is located at the junction of two major arterial
routes and benefits from excellent sea, high speed rail and air
connectivity. In line with Schroders' Winning Cities strategy,
Brittany is one of France's fastest growing regions in terms of GDP
and population growth.
Jeff O'Dwyer, of Schroder REIM, commented: "The 12 year lease on
this asset to a strong covenant in a fast growing region of France
makes this another excellent addition to our already high-quality
portfolio of assets. We have now deployed all of the proceeds from
last year's sale of low yielding retail assets into five warehouse
investments, with a blended net income yield of approximately 6.4%,
further diversifying the portfolio and increasing its allocation to
the high growth industrial and logistics sector."
Following this acquisition, the SERE portfolio comprises 13
properties with a value of approximately EUR240 million and a
blended net initial yield of 6.2%. The portfolio's sector
allocation is 46% office, 27% retail, 19% industrial and 8% mixed
use.
Debt facilities
Totalling EUR8.6 million, the new loan facility has been agreed
with Franco-German regional bank SaarLB. It represents a blended
loan to value of approximately 50% against the Rennes property.
The loan has a term of 5.0 years and a margin of 1.4% above 3
month Euribor. The Group has acquired an interest rate cap to limit
future potential interest costs, with a strike rate of 1.0%
p.a.
SERE now has total third party loans of EUR73.0 million,
representing an overall loan to value across the Group of 29%
against the gross asset value, at an average weighted interest rate
of 1.4%. The average unexpired loan term is 5.5 years.
Enquiries:
Duncan Owen/Jeff O'Dwyer
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
Dido Laurimore/Richard Gotla Tel: 020 3727 1000
FTI Consulting
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END
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