Business
Asset management & rent collection
Asset management & rent collection.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \n For release 9 November 2020\n Schroder Real Estate Investment Trust Limited\n(\"SREIT\"/ the \"Company\" / \"Group\")\n ASSET MANAGEMENT AND RENT COLLECTION UPDATE\n Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, provides an update on rent collection and recent asset management activity across its portfolio.\n 16 new lettings, renewals and reviews have completed across the portfolio since the last asset management update on 14 September 2020, which increases contracted rental income by £1.3 million per annum. A further update on activity will be included in the Company’s interim results which will be announced on 17 November 2020.\n \n London, Bloomsbury, University of Law (office)\n \n The Company owns a 50% interest in an office building on Store Street in Bloomsbury, totalling 85,900 sq ft, which is let to the University of Law until December 2026. The rent review dated 17 December 2019 has been settled at a rent of £1,850,000 per annum (the Company’s 50% share) or £42.12 per sq ft, which compares favourably with the prior rent of £1,434,500 per annum or £32.66 per sq ft. This delivers an annualised rental increase of £415,500 or 29%. The Company will receive £326,708 of back rent and, as part of the settlement, the tenant has received a three month rent free period. The new rent reflects a yield of 4.9% based on the independent valuation as at 30 June 2020. \n The asset is located in an increasingly desirable area which will benefit from the new Crossrail station at Tottenham Court Station and infrastructure improvements relating to Camden Council’s ‘West End Project’, including highway improvement measures to Tottenham Court Road and Gower Street, as well as a new pocket park at nearby Alfred Place. Combined with proximity to Kings Cross and the University of Central London (‘UCL’), this has led to increasing tenant demand in Bloomsbury and underpins future redevelopment value.\n \n Edinburgh, The Tun (office)\n \n The Tun comprises a 42,050 sq ft office in Edinburgh city centre. Since acquisition in August 2018, good progress has been made with asset management, including a recent lease extension with the anchor tenant, the BBC.\n The Company has completed a lease extension with the General Medical Council (‘GMC’) which extends its lease fro...