Business
Industrial Asset Management Update
Industrial Asset Management Update.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \n For release 30 March 2021\n Schroder Real Estate Investment Trust Limited\n(\"SREIT\"/ the \"Company\" / \"Group\")\n INDUSTRIAL ASSET MANAGEMENT UPDATE\n Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, provides an update on recent asset management activity across its industrial portfolio, which, following two significant recent acquisitions, is now its largest sector weighting representing 37% of portfolio value as at 31 December 2020.\n A further four new lettings and renewals have completed since February 2021. These increase contracted rental income by £192,000 per annum and reflect a 15% average uplift on the previous passing rent or Estimated Rental Value (‘ERV’) for the newly developed units.\n \n Milton Keynes, Stacey Bushes Industrial Estate\n \n Stacey Bushes Industrial Estate in Milton Keynes is the Company’s largest asset and comprises 67 units across 360,000 sq ft. As at 31 December 2020 the asset was valued at £43.4 million.\n A new three year lease has completed with Strata Communication, trading as Polestar Volvo, for 8,100 sq ft across three recently completed new warehouse units. The combined rent is £113,500 per annum, or £14.00 per sq ft. This compares with the ERV of £97,200 per annum. The lease includes annual break options and the tenant received no incentives. \n A new five year lease has completed with Prototrim for an 8,000 sq ft unit at a rent of £60,000 per sq ft, or £7.50 per sq ft. This compares with the previous passing rent of £45,500 per annum and is in line with ERV. The tenant will receive three months’ rent free and there is a break option in year three.\n A new three year lease has completed with Cityfibre Holdings for 1,525 sq ft at a rent of £16,000 per annum, or £10.50 per sq ft. This compares with the previous passing rent and ERV of £15,250 per annum.\n \n Norwich, Union Park Industrial Estate\n \n Union Park Industrial Estate in Norwich is the Company’s eighth largest asset and comprises 31 units across 269,000 sq ft. As at 31 December 2020 the asset was valued at £17.9 million.\n A three year lease renewal has completed with Norscan Stainless for 6,720 sq ft at a rent of £38,000 per annum, or £5.64 per sq ft. This represents an uplift of 8%.\n \n Cheadle, Stanley Green Trading Estate\n \n In December 2020, the Company acquired Stanley...