Schroder Real Estate Disposal of Wickes Retail Warehouse in Basingstone

 
TIDMSREI 
 
For release 7 March 2019 
 
                 Schroder Real Estate Investment Trust Limited 
                      ("SREIT"/ the "Company" / "Group") 
 
              DISPOSAL OF WICKES RETAIL WAREHOUSE IN BASINGSTOKE 
 
Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, 
announces that it has exchanged unconditional contracts to sell the Wickes 
retail warehouse in Basingstoke for GBP12 million. The price compares to the 
independent valuation as at 31 December 2018 of GBP12.5 million and reflects a 
net initial yield of 5.4%. The disposal is scheduled to complete on 29 March 
2019. 
 
The property comprises a modern retail warehouse unit totalling 35,290 sq ft 
let to Wickes Building Supplies Limited for a further fourteen years at GBP 
692,250 per annum or GBP19.50 per sq ft. The lease has upwards only open market 
rent reviews. Wickes are currently SREIT's third largest tenant overall and its 
largest retail tenant. Following the disposal of the subject property, it will 
become the Company's fourteenth largest tenant overall with a retail warehouse 
in Chester let for 14 years at GBP400,000 per annum. 
 
Based on the disposal price, the asset has generated an ungeared total return 
of 7.5% per annum since acquisition in 2007 compared with the MSCI Benchmark 
for the same period of 4% per annum. 
 
The disposal is consistent with SREIT's strategy to sell lower yielding retail 
assets that offer limited upside from asset management. Following completion of 
the disposal, and based on the independent portfolio valuation as at 31 
December 2018, SREIT's consolidated net loan to value falls from 29% to 27%. 
 
The additional cash, reduced loan to value and undrawn revolving credit 
facility provides SREIT with operational flexibility to monitor the market and 
consider opportunistic new investments in the future. 
 
 
                                    -ENDS- 
 
 
For further information: 
 
Schroder Real Estate Investment Management       020 7658 6000 
Limited: 
Duncan Owen / Nick Montgomery / Frank Sanderson 
 
Northern Trust:                                  01481 745529 
Sean Walsh / James Machon 
 
FTI Consulting:                                  020 3727 1000 
Dido Laurimore / Richard Gotla 
 
 
 
END 
 

(END) Dow Jones Newswires

March 07, 2019 02:00 ET (07:00 GMT)