Schroder Real Estate New letting at St. John's Retail Park in Bedford

 
TIDMSREI 
 
12 August 2016 
 
                 Schroder Real Estate Investment Trust Limited 
                                (the 'Company') 
 
                NEW LETTING AT ST. JOHN'S RETAIL PARK IN BEDFORD 
 
Schroder Real Estate Investment Trust Limited, the actively managed UK-focused 
REIT, announces further progress in executing its strategy of repositioning St. 
John's Retail Park in Bedford, in order to attract higher quality retailers at 
increased rents. The Company acquired this asset in May 2015 for GBP31.8 million. 
 
TJX UK Limited ('TJX'), trading as Homesense, has exchanged an agreement to 
lease a 12,100 sq ft unit on a fifteen year lease at a rent of GBP250,000 per 
annum.  The lease has a tenant only break option after 10 years and the tenant 
will receive a 12 month rent free period. The agreement is conditional on the 
receipt of planning permission for a trading mezzanine and external 
improvements. 
 
The unit is currently let to DSG Limited ('DSG'), trading as PC World, at GBP 
225,720 per annum on a lease that expires in September 2020. 
 
DSG also occupies a separate 14,800 sq ft unit at the retail park, paying GBP 
265,500 per annum until September 2020 and has consolidated the PC World brand 
into this unit alongside its Dixons and Carphone Warehouse brands. 
Simultaneously with exchanging the TJX agreement the Company has: 
 
·         Entered into an agreement with DSG to vacate the 12,100 sq ft unit in 
return for paying the Company GBP400,000; and 
 
·         Entered into a separate agreement with DSG to modify their retained 
unit lease for a ten year term at GBP280,000 per annum with no rent free 
incentive.  There is a tenant only break option at year five subject to a 
penalty of GBP250,000. 
 
All agreements are conditional on planning which is expected in the final 
quarter of 2016.  The combined agreements increase net income by 8%, with the GBP 
400,000 payment from DSG used to carry out the landlords works to TJX's new 
unit. 
 
This latest asset management activity enhances the tenant mix, increases the 
potential to attract additional high quality retailers to the park and 
consolidates a higher rental tone which will be used as part of ongoing rent 
review negotiations.  The TJX letting follows recently completed asset 
management activity that will on completion result in a yield on cost of over 
7%. 
 
                                    - ENDS- 
 
 For further information: 
 
Schroder Real Estate Investment Management 020 7658 6000 
Limited: 
Duncan Owen / Nick Montgomery 
 
Northern Trust:                            01481 745529 
David Sauvarin 
 
FTI Consulting:                            020 3727 1000 
Dido Laurimore / Ellie Sweeney 
 
 
 
END 
 

(END) Dow Jones Newswires

August 12, 2016 02:00 ET (06:00 GMT)