Business
Acquisition of Manchester Industrial Estate
Acquisition of Manchester Industrial Estate.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \n For release 18 December 2020\n Schroder Real Estate Investment Trust Limited\n(\"SREIT\"/ the \"Company\" / \"Group\")\n ACQUISITION OF MANCHESTER INDUSTRIAL ESTATE AND DEVELOPMENT SITE\n Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has completed the acquisition of Stanley Green Trading Estate (‘the Estate’) together with an adjoining development site (‘the Site’) in Cheadle, South Manchester, for a total of £17.25 million, reflecting a blended net initial yield of 5.2%. This is in line with the strategy to selectively deploy available capital into income producing assets alongside planned asset management initiatives and the ongoing share buyback programme.\n The freehold Estate and Site are located in a prime South Manchester location at the junction of the A34 and the A555, which is the recently completed upgrade Manchester Airport Eastern Link Road (Ringway Road). This provides a direct link to Manchester city centre, Manchester Airport and the M60 orbital motorway. The local road network also connects to affluent suburbs such as Cheadle, Bramhall, Wilmslow and Alderley Edge. The Estate is located close to established major grocery stores and retail parks.\n The Estate comprises approximately 150,000 sq ft of warehouse accommodation across 14 units on a nine acre site and is fully let to thirteen tenants generating a total contracted rent of £960,000 per annum or an average rent of £6.55 per sq ft. The estimated market rental value (‘ERV’) is approximately £1.25 million per annum. The average unexpired lease term, assuming all tenant breaks are exercised, is three years. 97% of the rent due during the Covid-19 pandemic has been collected. The apportioned price for the Estate of £14.4 million reflects a net initial yield of 6.3% and a reversionary yield, based on the ERV, of 7.1%.\n The Estate has a strong tenant line up of local, regional and national trade occupiers including Apex Self Storage Limited (19% of rental income), Howden Joinery Properties Limited (9.4% of rental income), Screwfix Direct Limited (7.3% of rental income) and Toolstation Limited (7.1% of rental income). The strategy is to work closely with the occupiers to align their occupation with various estate management improvements.\n The Site comprises a 3.4 acre, regular s...