Business
Sustainability, Disposal and Asset Management U...
Sustainability, Disposal and Asset Management U....
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \n For release 15 December 2020\n Schroder Real Estate Investment Trust Limited\n(\"SREIT\"/ the \"Company\" / \"Group\")\n SUSTAINABILITY RATING, DISPOSAL AND ASSET MANAGEMENT UPDATE\n Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, provides an update on recent positive activity across its portfolio.\n Three Green Stars awarded in annual GRESB survey\n The Company has retained its three star rating in the GRESB global sustainability benchmark assessment for real estate assets and came first in its peer group of nine internally and externally managed listed real estate investment companies. The 2020 GRESB Assessment structure fundamentally changed from the 2019 Assessment, establishing a new, more challenging baseline for measuring sustainability performance.\n Participation in the GRESB survey is part of the Company’s broader ESG and positive impact strategy which is integral to the investment process. Further information can be found within the Company’s latest Sustainability Guide at https://www.schroders.com/en/uk/private-investor/fund-centre/funds-in-focus/investment-trusts/schroders-investment-trusts/schroder-real-estate-investment-trust/sustainability/.\n Disposal of The Portergate, Sheffield\n The Company announces that it has exchanged unconditional contracts to sell The Portergate, a 49,500 sq ft office in Sheffield, to a private purchaser, for £4.2 million. The buyer has paid a deposit of 10% of the purchase price with completion due on 5 February 2021. The price is in-line with the independent valuation as at 30 September 2020. The property is 80% vacant by area following the departure of the previous tenant, Aviva, who vacated in return for a £1.2 million prior payment to the Company. \n The Company has reviewed refurbishment options and concluded that a disposal at the agreed price is the most attractive option with proceeds to be recycled into income producing investments. The asset is the Company’s largest void and, based on the tenancy information at 30 September 2020, the disposal reduces the portfolio void rate from 7.2% to 5.5%, calculated as a percentage of the portfolio estimated rental value (‘ERV’).\n Recent asset management activity\n The Company continues to complete positive asset management initiatives across the portfolio, with...