Acquisition

About this update from Schroder European Real Estate Investment Trust Plc

[{"type":"text","content":"\n \nRNS Number : 8707V Schroder Eur Real Est Inv Trust PLC 02 February 2017  \n\n \n \n2 February 2017\n \n \nSCHRODER EUROPEAN REal estate investment trust plc COMPLETES PURCHASE OF €30 million VALUE ADD OFFICE PROPERTY IN PARIS, \nREFLECTING A 9.5% YIELD\n \n-Strategic value-add acquisition alongside Grand Paris extension - attractive yield, \nmulti-tenanted, with income growth potential-\n \n\nFurther to the announcement made on 28 October 2016, Schroder European Real Estate Investment Trust Plc (\"SERE\" or the \"Company\"), the company investing  in European growth cities, is pleased to announce it has completed the purchase of a multi-tenanted office property in Saint Cloud, Ile de France, Paris, for approximately €30 million.  \n \nThis is the eighth acquisition by SERE, which has now invested €185 million at a blended net initial yield of approximately 6.3%, in selected liquid and established Western European growth cities. \n \nFully let to 12 tenants, the c. 15,800 sqm office building represents the best office space within the larger 65,000 sqm complex, benefiting from good natural light, divisible floor plates and attractive views over Paris. The current average WAULT is 5 years, with annual lease indexation and affordable rents. The strategic plan for the asset is to maximise income returns, stabilise the existing rent roll and grow rents over time. With an established presence in the Paris market, Schroder REIM is well positioned to add value to the investment.  \n \nThe 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. Saint Cloud is a mixed use office and residential area that already benefits from good transport connectivity, being in close proximity to the Paris ring road and with nearby metro, train and tramway stations. \n \nThe acquisition is entirely consistent with the Company's stated strategy of investing in growth cities benefiting from urbanisation, demographic change and infrastructure improvements.  \n \nTony Smedley, SERE Fund Manager, commented:\n \n\"This off-market acquisition, secured on favourable terms, further demonstrates our ability to identify assets that are accretive to th...

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