Business
Disposal of Wickes Retail Warehouse in Basingstone
Disposal of Wickes Retail Warehouse in Basingstone.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \nFor release 7 March 2019\n\nSchroder Real Estate Investment Trust Limited(\"SREIT\"/ the \"Company\" / \"Group\")\n\nDISPOSAL OF WICKES RETAIL WAREHOUSE IN BASINGSTOKE\n\nSchroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has exchanged unconditional contracts to sell the Wickes retail warehouse in Basingstoke for £12 million. The price compares to the independent valuation as at 31 December 2018 of £12.5 million and reflects a net initial yield of 5.4%. The disposal is scheduled to complete on 29 March 2019. \n\nThe property comprises a modern retail warehouse unit totalling 35,290 sq ft let to Wickes Building Supplies Limited for a further fourteen years at £692,250 per annum or £19.50 per sq ft. The lease has upwards only open market rent reviews. Wickes are currently SREIT’s third largest tenant overall and its largest retail tenant. Following the disposal of the subject property, it will become the Company’s fourteenth largest tenant overall with a retail warehouse in Chester let for 14 years at £400,000 per annum.\n\nBased on the disposal price, the asset has generated an ungeared total return of 7.5% per annum since acquisition in 2007 compared with the MSCI Benchmark for the same period of 4% per annum.\n\nThe disposal is consistent with SREIT’s strategy to sell lower yielding retail assets that offer limited upside from asset management. Following completion of the disposal, and based on the independent portfolio valuation as at 31 December 2018, SREIT’s consolidated net loan to value falls from 29% to 27%.\n\nThe additional cash, reduced loan to value and undrawn revolving credit facility provides SREIT with operational flexibility to monitor the market and consider opportunistic new investments 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":2828,"tagName":"div"}]