City BKK leases surrender agreed in Hamburg

About this update from Schroder European Real Estate Investment Trust Plc

[{"type":"text","content":"\n \nRNS Number : 3610E Schroder Eur Real Est Inv Trust PLC 09 February 2018  \n\n9 February 2018\n \n \nSchroder European Real Estate Investment Trust Plc\nCITY BKK LEASE SURRENDER AGREED IN HAMBURG\n        \nSchroder European Real Estate Investment Trust Plc (\"SERE\" or the \"Company\"), the company investing in European growth cities, announces that it has agreed terms for City BKK to surrender its lease at the Hamburg office asset in Germany, in return for a cash payment to the Company of €3.9 million. This cash payment represents 4.7 years of annual rental income from City BKK.  \nNegotiating a surrender with City BKK was a key initiative within the acquisition strategy. The agreement gives SERE the opportunity to re-position the property, re-leasing the space into a strengthening office sub-market and diversifying the property's income profile.\nThe building is located in the fast growing City Süd district, where vacancy rates have fallen substantially to approximately 5% since the Company's acquisition. This has been led by strong take up, as occupiers perceive the City Süd district as providing better value relative to the neighboring city centre, combined with reduction of supply via the conversion of office accommodation to residential and hotel uses. \nJeff O'Dwyer, Fund Manager of Schroder REIM, commented: \"The surrender payment realises an immediate return for the Company, part of which will be reinvested into the asset to take advantage of  favourable office demand conditions and improve the assets longer-term income profile.\"\n\n \nEnquiries:\n\n \nDuncan Owen/Jeff O'Dwyer\nSchroder Real Estate Investment Management Limited                Tel: 020 7658 6000\n \nRia Vavakis\nSchroder Investment Management Limited                                   Tel: 020 7658 2371\n \nDido Laurimore/Richard Gotla/Ellie Sweeney                              ...

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