Completion of New Lettings in Paris

About this update from Schroder European Real Estate Investment Trust Plc

[{"type":"text","content":"\n \nRNS Number : 3378R Schroder Eur Real Est Inv Trust PLC 21 September 2017  \n\n \n21 September 2017\n \nSCHRODER EUROPEAN REIT COMPLETES NEW LETTINGS IN PARIS\n \nSchroder European Real Estate Investment Trust Plc (\"SEREIT\" or the \"Company\"), the company investing in European growth cities, announces that it has agreed two new lettings, and is in negotiation to secure a new tenant, collectively accounting for c. 4,500 sqm of space, at its Saint Cloud asset in Ile de France, Western Paris.\n \n·      A lease extension and 555 sqm expansion with Outscale, the cloud operating system company, taking its total occupancy at the asset to 1,695 sqm secured;\n·      A new six year lease agreement with Ethypharm, a pharmaceutical company, for 2,450 sqm; and\n·      Ongoing discussions for a new 12 year lease with a governmental body, for ca. 400 sqm of vacant storage accommodation. \n \nFollowing these new lease agreements the asset will be fully let, increasing the WAULT from 4.7 to 5.9 years[1] and improving income returns and revenue security, a key reflection of the asset's dominant position in a fast growing suburb of Paris. The Company recently implemented a value-enhancing refurbishment programme, comprising the full renovation of lift lobbies, with completion due in the second half of 2018.\n \nAcquired in February for €30 million, the c. 15,800 sqm office building is valued at €33.1 million (as at 30 June 2017), a 10% increase relative to purchase price. The property will be next valued at 30 September 2017. The property exhibits all those characteristics sought by SEREIT in its assets including good natural light, divisible floor plates and attractive views over Paris. The location will also improve even further as a result of nearby infrastructure developments with the completion of the Grand Paris public transport due in 2025 immediately alongside the building.   \n \nJeff O'Dwyer, SEREIT Investment Manager, commented:\n \n\"This value-enhancing asset management activity is entirely consistent with our active approach to managing the properties in the portfolio. Our strategy at acquisition was founded on leveraging our established presence in the Paris market to capture value, initially thro...

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