Business
New lettings secured in Sheffield and Edinburgh
New lettings secured in Sheffield and Edinburgh.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \n8 July 2016\n\nSchroder Real Estate Investment Trust Limited(the “Companyâ€)\n\nNEW LETTINGS SECURED IN SHEFFIELD AND EDINBURGH \n\nDemand for commercial space in ‘winning’ UK cities remains\n\nSchroder Real Estate Investment Trust (the “Companyâ€), the actively managed UK-focused REIT, announces that it has secured a number of new lettings. These lettings are consistent with the Company’s strategy of actively managing its portfolio to maximise value and deliver sustainable income growth. The portfolio has a focus on strong tenant covenants with assets located in higher growth locations and winning cities.\n\nThe Company has completed a seven year lease with solicitors Irwin Mitchell for over 39,000 sq ft at a rent of £555,000 per annum at its Riverside West office complex in Sheffield. Also, at Haston House in Edinburgh, the Company has exchanged an agreement for a new letting to Quotient Clinical Limited for a new five year lease at £65,000 per annum.\n\nAt the Arndale Shopping Centre in Leeds, planning consent has now been received for a new hotel that is pre-let to Premier Inn on a 20 year lease at £412,800 per annum. The construction works are proceeding and the lease should complete in the second quarter of 2017.\n\nThe Company’s investment strategy remains focussed on winning cities and towns, meaning those with a competitive advantage in terms of:\n\n\nHigher levels of GDP, employment and population growth;\n\nWell developed infrastructure; and\n\nBeing places where people want to live as well as work.\n\n\nThe Company has engaged in positive conversations with new and existing tenants since the referendum result and these lettings are just two examples of continuing tenant demand across the portfolio.\n\nThe Company remains well positioned, with active management supporting its ability to deliver long term sustainable earnings growth for shareholders. The business has a stable balance sheet with low levels of long term debt and no refinancing events for several years. It also has no exposure to the City of London, Canary Wharf or European financial institutions as tenants, which could be the most impacted by the uncertainty arising from the UK’s exit from the EU. As a consequence, the Company is performing in line with its business plan, whilst conti...