For release
11 March 2019
Schroder Real
Estate Investment Trust Limited
("SREIT"/ the "Company" / "Group")
DISPOSAL OF
VICTORY HOUSE IN BRIGHTON
Schroder Real Estate Investment Trust, the actively managed
UK-focused REIT, announces that it has exchanged unconditional
contracts to sell Victory House in Brighton to an institutional
purchaser for £36.1 million. The disposal is scheduled to
complete on 30 April 2019.
Victory House is an 84,988 sq ft office building in Brighton
city centre, let to BUPA Insurance Services Limited and Mott
MacDonald Limited with an average weighted unexpired lease term of
7.7 years. The current rent is £0.79 million per annum,
increasing to £1.88 million per annum in September 2019 on expiry of a rent free
period. The price therefore reflects a net initial yield, on
expiry of the rent free period in September
2019, of 4.9%.
As at 31 December 2018 Victory
House was valued at £34.25 million. Based on the disposal
price, the asset has generated an ungeared total return of 10.3%
per annum since acquisition in 2005, compared with the MSCI
Benchmark for the same period of 5.9% per annum.
The disposal is consistent with SREIT’s strategy to sell lower
yielding assets and to realise gains from asset management.
Following the disposal of the subject property and the Wickes
retail warehouse in Basingstoke announced on 7 March 2019, and based on the independent
portfolio valuation as at 31 December
2018, SREIT’s consolidated net loan to value will fall from
27% to 21%.
The additional cash, reduced loan to value and undrawn revolving
credit facility provides SREIT with the flexibility to monitor the
market and consider new investment opportunities in the future.
-ENDS-
For further information:
Schroder Real Estate
Investment Management Limited:
Duncan Owen / Nick Montgomery / Frank Sanderson |
020 7658 6000 |
Northern
Trust:
Sean Walsh / James Machon |
01481 745529 |
FTI
Consulting:
Dido Laurimore / Richard Gotla |
020 3727 1000 |