Lease of additional office space in Hamburg

About this update from Schroder European Real Estate Investment Trust Plc

[{"type":"text","content":"\n \n \n \n RNS Number : 4130B\n Schroder Eur Real Est Inv Trust PLC\n 08 October 2020\n  \n \n \n \n 8 October 2020\n \n \n SCHRODER EUROPEAN REIT LEASES ADDITIONAL OFFICE SPACE IN HAMBURG\n \n \n -Latest asset management success follows transformational c. €104 million disposal of Paris office asset- \n \n \n Schroder European Real Estate Investment Trust plc (\"SERE\" or the \"Company\"), the company investing in European growth cities, has completed a new five-year lease agreement for a further floor at Hammerbrookstraße 94, its Hamburg office investment. \n \n \n BAM Deutschland, the construction specialist, has taken the 8th floor which totals 646 sqm (c. 10% of the lettable area), on a five year lease, which will generate an additional €104,500 of annual contracted rent. The building is now 81% let to a diverse range of tenants, with the Company having leased five of the seven floors vacated following the agreement of a lease surrender with the headline tenant, at a combined rent of 19% above business plan and 12% above the ERV. The commencement of the lease will enhance the income return for the investment by 0.6% and is expected to have a positive impact on 30 June 2020 valuation of c. 3% / €600,000. \n \n \n The modern property is located in Hamburg's fast growing City Sud district. The submarket's appeal has increased in recent years as a result of new residential and retail development, whilst the micro location benefits from its proximity to a number of key arterial routes and Hammerbrook S-Bahn station, which is one stop for Hamburg Hauptbahnh, the city's main railway station.\n \n \n \n Jeff O'Dwyer, Fund Manager, commented:\n \n \"Despite the near-term impact of Covid-19 on occupational activity, we continue to see demand from a range of tenants for well-located office space across our target Continental European markets. Following on from the transformational Boulogne-Billancourt transaction announced last week, it represents the latest successful example of our Winning Cities strategy, whilst further improving the portfolio metrics.\"\n \n \n On 1 October 2020, SERE announced it had exchanged contracts to sell its Boulogne-Billancourt office asset in Paris for approximately €104 million. The sale is structured as a forward funding, with the building being handed over to the purchaser in H1 2022, following ...

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