Business
Disposal of non-core assets
Disposal of non-core assets.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \nTo be released 12 May 2016\n\nSchroder Real Estate Investment Trust Limited (the ‘Company’) \n\nDISPOSAL OF NON-CORE ASSETS\n\nSchroder Real Estate Investment Trust Limited, the actively managed UK-focussed REIT, announces the completion of four disposals for a combined price of £12.86 million reflecting an average net initial yield of 3.4%. The combined price was in line with the last reported valuation as at 31 December 2015 but reflected an uplift of £2 million or 18.5% compared with the previous year end valuation as at 31 March 2015. The disposals are summarised as follows:\n\n3 – 6 Abbeygate Street, Bath\n\nThe secondary retail parade located in Bath city centre was sold for £4.7 million on 10 May 2016. The price reflected a net initial yield of 4.6%, increasing to 5.6% on expiry of rent free periods. The property was let to retailers including C.E.X Limited and Cotswold Outdoor Limited with an average lease term of 7.4 years.\n\nClumber Street, Nottingham\n\nThe retail unit was sold for £2 million on 1 April 2016 with the price reflecting a net initial yield of 5.2% on expiry of a rent free period. This disposal follows the completion of a letting to Tortilla Mexican Grill Limited at a rent of £110,000 per annum.\n\nSt. Georges Court, New Malden\n\nFollowing exchange of contracts in April 2015, the disposal of the mixed use office and leisure property completed as planned on 4 April 2016 at £4 million. The price reflected a net initial yield of 5.6%.\n\nTechnology House, Ancells Business Park, Fleet\n\nFollowing exchange of contracts in December 2015, the disposal completed on 25 February 2016 at £2.2 million. The secondary office property was 77% vacant and the price reflected a net initial yield, before non-recoverable expenditure, of 3.1%. \n\nFurther details on these initiatives will be provided with the forthcoming year end accounts to be released on the 13 June 2016.\n\nCommenting, Nick Montgomery, Head of UK Real Estate Investment at Schroder Real Estate Investment Management Limited said:\n\n“These disposals are consistent with our strategy to sell smaller, lower yielding properties where asset management initiatives have been completed. The proceeds will be reinvested in a pipeline of on-going capital expenditure initiatives where highe...