Business
Disposal of the Booker unit in Acton
Disposal of the Booker unit in Acton.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \nFor release 21 May 2019\n\nSchroder Real Estate Investment Trust Limited\n\n(\"SREIT\"/ the \"Company\" / \"Group\")\n\nDISPOSAL OF THE BOOKER UNIT IN ACTON\n\nSchroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has exchanged unconditional contracts to sell a warehouse let to Booker Limited in Acton to an institutional purchaser for £18.875 million. The disposal is due to complete on 15 November 2019, which provides SREIT with income during the half-year period. The buyer has paid a non-refundable deposit of £1.89 million (10% of the purchase price).\n\nThe property comprises a 64,614 sq ft warehouse on Allied Way Industrial Estate in Acton let to Booker Limited until September 2026 at £700,000 per annum. The price therefore reflects a net initial yield of 3.5%.\n\nBased on the disposal price, the asset has generated an ungeared total return of 14.3% per annum since acquisition in 2005, compared with the MSCI Benchmark for the same period of 5.7% per annum.\n\nThe disposal is consistent with SREIT’s strategy to sell lower yielding assets and to realise gains from asset management. Since 31 December 2018, SREIT has completed or unconditionally exchanged contracts to sell five assets (including the Booker unit) for £68.9 million, which reflect an average net initial yield of 3.1%. \n\nThis follows the previously announced disposal of Victory House at a price of £36.1 million, which completed on 30 April 2019. Following completion of the Booker unit, and adopting portfolio value as at 31 March 2019, SREIT’s loan to value, net of cash, would be 19%.\n\nSREIT has today also announced its final results for the financial year to 31 March 2019.\n\n-ENDS-\n\nFor further information:\n\n\n\nSchroder Real Estate Investment Management Limited:Duncan Owen / Nick Montgomery / Frank Sanderson\n020 7658 6000\n\n\n\nNorthern Trust:Sean Walsh / James Machon\n01481 745529\n\n\n\nFTI Consulting:Dido Laurimore / Richard Gotla\n020 3727 1000\n\n\n\n ","length":2736,"tagName":"div"}]