Schroder Real Estate Disposal of Wickes Retail Warehouse in Basingstone
07 March 2019 - 6:00PM
UK Regulatory
TIDMSREI
For release 7 March 2019
Schroder Real Estate Investment Trust Limited
("SREIT"/ the "Company" / "Group")
DISPOSAL OF WICKES RETAIL WAREHOUSE IN BASINGSTOKE
Schroder Real Estate Investment Trust, the actively managed UK-focused REIT,
announces that it has exchanged unconditional contracts to sell the Wickes
retail warehouse in Basingstoke for GBP12 million. The price compares to the
independent valuation as at 31 December 2018 of GBP12.5 million and reflects a
net initial yield of 5.4%. The disposal is scheduled to complete on 29 March
2019.
The property comprises a modern retail warehouse unit totalling 35,290 sq ft
let to Wickes Building Supplies Limited for a further fourteen years at GBP
692,250 per annum or GBP19.50 per sq ft. The lease has upwards only open market
rent reviews. Wickes are currently SREIT's third largest tenant overall and its
largest retail tenant. Following the disposal of the subject property, it will
become the Company's fourteenth largest tenant overall with a retail warehouse
in Chester let for 14 years at GBP400,000 per annum.
Based on the disposal price, the asset has generated an ungeared total return
of 7.5% per annum since acquisition in 2007 compared with the MSCI Benchmark
for the same period of 4% per annum.
The disposal is consistent with SREIT's strategy to sell lower yielding retail
assets that offer limited upside from asset management. Following completion of
the disposal, and based on the independent portfolio valuation as at 31
December 2018, SREIT's consolidated net loan to value falls from 29% to 27%.
The additional cash, reduced loan to value and undrawn revolving credit
facility provides SREIT with operational flexibility to monitor the market and
consider opportunistic new investments in the future.
-ENDS-
For further information:
Schroder Real Estate Investment Management 020 7658 6000
Limited:
Duncan Owen / Nick Montgomery / Frank Sanderson
Northern Trust: 01481 745529
Sean Walsh / James Machon
FTI Consulting: 020 3727 1000
Dido Laurimore / Richard Gotla
END
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