Business
Disposal of Victory House in Brighton
Disposal of Victory House in Brighton.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \nFor release 11 March 2019\n\nSchroder Real Estate Investment Trust Limited(\"SREIT\"/ the \"Company\" / \"Group\")\n\nDISPOSAL OF VICTORY HOUSE IN BRIGHTON\n\nSchroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has exchanged unconditional contracts to sell Victory House in Brighton to an institutional purchaser for £36.1 million. The disposal is scheduled to complete on 30 April 2019. \n\nVictory House is an 84,988 sq ft office building in Brighton city centre, let to BUPA Insurance Services Limited and Mott MacDonald Limited with an average weighted unexpired lease term of 7.7 years. The current rent is £0.79 million per annum, increasing to £1.88 million per annum in September 2019 on expiry of a rent free period. The price therefore reflects a net initial yield, on expiry of the rent free period in September 2019, of 4.9%. \n\nAs at 31 December 2018 Victory House was valued at £34.25 million. Based on the disposal price, the asset has generated an ungeared total return of 10.3% per annum since acquisition in 2005, compared with the MSCI Benchmark for the same period of 5.9% per annum.\n\nThe disposal is consistent with SREIT’s strategy to sell lower yielding assets and to realise gains from asset management. Following the disposal of the subject property and the Wickes retail warehouse in Basingstoke announced on 7 March 2019, and based on the independent portfolio valuation as at 31 December 2018, SREIT’s consolidated net loan to value will fall from 27% to 21%. \n\nThe additional cash, reduced loan to value and undrawn revolving credit facility provides SREIT with the flexibility to monitor the market and consider new investment opportunities in the future. \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":2799,"tagName":"div"}]