Schroder European Real E... Share Discussion Threads

[speedsgh] 21/2/2018 07:10

Acquisition of Netherlands data centre -

Schroder European Real Estate Investment Trust plc ("SERE"), the company investing in European growth cities, has completed the acquisition of a data centre in Apeldoorn, the Netherlands, for approximately €20 million. The acquisition reflects an attractive net initial income yield of 10%. SERE has now fully deployed all of its capital currently available for investment in a ten asset portfolio, located in growth cities and regions that are benefiting from the favourable Eurozone economic outlook...

[speedsgh] 09/2/2018 11:14

City BKK leases surrender agreed in Hamburg -

Schroder European Real Estate Investment Trust Plc ("SERE" or the "Company"), the company investing in European growth cities, announces that it has agreed terms for City BKK to surrender its lease at the Hamburg office asset in Germany, in return for a cash payment to the Company of €3.9 million. This cash payment represents 4.7 years of annual rental income from City BKK.

Negotiating a surrender with City BKK was a key initiative within the acquisition strategy. The agreement gives SERE the opportunity to re-position the property, re-leasing the space into a strengthening office sub-market and diversifying the property's income profile.

The building is located in the fast growing City Süd district, where vacancy rates have fallen substantially to approximately 5% since the Company's acquisition. This has been led by strong take up, as occupiers perceive the City Süd district as providing better value relative to the neighboring city centre, combined with reduction of supply via the conversion of office accommodation to residential and hotel uses.

Jeff O'Dwyer, Fund Manager of Schroder REIM, commented: "The surrender payment realises an immediate return for the Company, part of which will be reinvested into the asset to take advantage of favourable office demand conditions and improve the assets longer-term income profile."

[speedsgh] 06/2/2018 12:18

Sale of interest in French retail assets (1/2/18) -

Schroder European Real Estate Investment Trust Plc ("SERE" or the "Company"), the company investing in European growth cities, announces that the Casino Group, the French retailer, has exercised a buy-back option on SERE's 70% share in two retail assets in France. The sale price reflects a 10% premium to current valuation.

SERE acquired the grocery retail assets, in Biarritz and Anglet, in June 2016 by way of a joint venture, acquiring 70% of the investments and the vendor Mercialys, a subsidiary of Casino Group, retaining a 30% interest. The sale price of SERE's 70% interest equates to €44.8 million. Under the option, the re-purchase will exercise on 31 July 2018. The Casino Group will take over SERE's share of the existing debt facility on the assets which amounts to €18.2 million and hence the net equity proceeds to SERE from the sale are approximately €26.6 million.

Following the disposal, SERE will have a combined equity and debt investment capacity of approximately €70 million and as stated at the Full Year Results, SERE continues to advance discussions on a number of acquisitions within its identified pipeline and remains confident of achieving full deployment in the short term.

[speedsgh] 09/1/2018 09:03

NOTICE OF DIVIDEND CURRENCY EXHANGE RATE (STERLING) -

On 6 December 2017, Schroder European Real Estate Investment Trust plc (the "Company") announced its fourth interim dividend for the year ended 30 September 2017 of 1.5 euro cents per share...

...This announcement confirms that the currency exchange rate applicable for the interim dividend for shareholders on the UK register who did not make a currency election before the applicable deadline and who therefore will receive their dividend in sterling is:

Declared dividend -- 1.5 euro cents per share
Exchange rate -- 0.88640
Dividend to be paid for those receiving dividends in sterling -- 1.32960 pence per share

The dividend will be paid on 19 January 2018 to shareholders who were on the register at the close of business on 5 January 2018.

[speedsgh] 09/1/2018 08:59

SCHRODER EUROPEAN REIT SECURES NEW KEY TENANT AT METROMAR SHOPPING CENTRE, SEVILLE (8/1) -

-1,200 sqm letting enhances leisure offering at one of the region's premier family destinations-

Schroder European Real Estate Investment Trust plc ("SEREIT"), the company investing in European growth cities, has agreed a new anchor lease with Urban Planet, one of Spain's leading leisure specialists at its Metromar Shopping Centre in Seville, southern Spain.

Urban Planet has signed a five year lease, with an option for a further five years, on c. 1,200 sqm of space, at a passing rent ahead of business plan at acquisition. It will be Urban Planet's first leisure centre in the Seville region, with SEREIT having secured exclusivity limiting its opening of other trampoline related businesses in the region.

Urban Planet has a strong track record of producing, managing and implementing innovative leisure experiences linked to physical activity. At Metromar, the primary activity will be trampolining, as well as climbing, dodgeball, a children's play area and a food & beverage offering. Catering for all ages, the new space will complement the centre's existing leisure offering, and is expected to significantly drive customer footfall and dwell time.

Urban Planet is aiming to commence trading during 2018, following the demolition of the existing unit, and will invest significant capital, demonstrating its commitment to the centre.

SEREIT acquired Metromar in May 2017 in joint venture with the Schroder advised Immobilien Europa Direkt, for a purchase price of approximately €52.5 million, reflecting a net initial yield of 6.2%. The 23,500 sqm shopping centre is 99% let to 50 tenants, with a significant convenience retail offering and is anchored by a 2,300 sqm Mercadona grocery supermarket.

Jeff O'Dwyer, Fund Manager at Schroder REIM, commented:
"One of our acquisition objectives was to identify and deliver a quality leisure operator to what was a historically non-income producing space. We believe that Urban Planet will be a transformational tenant, changing the dynamic of the centre and further improving performance.

"Achieved at an attractive passing rent, we expect a positive increase for Q4 2017 valuation and having delivered on our business plan ahead of schedule, it leaves us well placed to secure further leasing and re-gears, on improved rents, as we position Metromar as the region's premier retail and leisure offering."

[speedsgh] 03/1/2018 15:21

tyrano - Thanks for your reply. Sorry, I wasn't completely clear with my query. I was trying to establish whether SERE was a member of the UK REIT tax regime whereby the profits of REITs are not subject to corporation tax but 90% of the income profits of their property rental businesses must be distributed to shareholders annually in the form of Property Income Distributions (PIDs) which are subject to withholding tax at the basic rate of income tax (currently 20%).

Whilst the company's name is somewhat misleading, SERE have today confirmed to me that the company operates as an Investment Trust, rather than a REIT, and it therefore does not withhold tax on dividends. However, as stated in the last paragraph under Dividend Policy on pg29 of the Nov 2015 prospectus, the company will distribute a minimum of 85% of its income in respect of an accounting period.

Prospectus -

"In accordance with regulation 19 of the Investment Trust (Approved Company) (Tax) Regulations 2011, the Company will not (except to the extent permitted by those regulations) retain more than 15 per cent. of its income (as calculated for UK tax purposes) in respect of an accounting period."

Somewhat confusing but I am now satisfied with the tax treatment of its property income and its dividend distributions. In short SERE is an investment trust, not a REIT. Hope this helps.

[tyranosaurus] 02/1/2018 13:22

speedsgh

Schroder European Real Estate Inv Trust

REIT = Real Estate Investment Trust

[speedsgh] 22/12/2017 09:55

Sorry in advance for the stupid question but is SERE a REIT?

[8w] 18/12/2017 09:44

Bought a few, prepared to buy more on further weakness

[lord gnome] 17/12/2017 14:46

This is now on my watch list as well 8w. Looking at the way it has dropped recently, I will continue to watch from the sidelines for now and see where it ends up. A big discount and a decent yield is right up my street, but I try to avoid catching falling knives.

[8w] 17/12/2017 08:37

Unusually large discount, management changes should not alter investment story. Good diversifier. Could open a position tomorrow?

[sleepy] 28/2/2017 17:14

Written up in Times today

[bartle] 28/12/2016 14:46

That should have been Investec not Invested, my error.

[bartle] 23/12/2016 12:16

Invested increasing their holding. That's a positive sign to me.

[luckymouse] 16/12/2016 12:59

it was at a premium before

[bartle] 21/11/2016 11:13

Any views as to why this REIT has fallen so sharply?

[bartle] 24/9/2016 18:01

Bought this one shortly after launch but in doing so I bought twice the amount I intended to through being careless with the mouse, easy to do whe you are not concentrating. However it was a fortuitous error as it has appreciated 16% since my purchase so I got off lucky. Given that euro economies are in the mire at the moment these guys seem to know what they are doing with their property purchases and there is a good divi on top. If euroland starts to improve this could do very well so I am not selling anytime soon.