Schroder Real Estate Inv... Share Discussion Threads

[skinny] 08/5/2014 07:19

Wembley planning update

On 18 September 2013 the Company announced it had exchanged contracts to sell a one acre plot, comprising part of its two acre Wembley site, to a wholly owned subsidiary of The Unite Group plc ('Unite') for a base price of £7.4 million. Completion of the disposal was subject to Unite securing detailed planning consent for 200,000 sq ft of student accommodation comprising approximately 684 rooms without onerous conditions.

The Company now announces that Unite have secured resolution to grant detailed planning consent for 200,000 sq ft of student accommodation comprising 699 rooms, without onerous conditions. This increases the sale price to £7.56 million including overage, compared with a valuation as at 31 March 2014 of £6.25 million.

The only remaining condition outside of the Company's control is expiry of the planning Judicial Review period 22 May 2014. The contract with Unite has a fixed completion date of 1 August 2014.

The Company will provide a further update in due course.

-ENDS-

[skinny] 07/5/2014 07:26

On 17 April 2014 Schroder Real Estate Investment Trust (the 'Company') completed a Placing and Offer for Subscription (the 'Placing') that raised £40.2 million from the issuance of 80 million shares at an issue price of 50.25 pence per share. The Placing was completed at a premium to the last reported Net Asset Value.

Following completion of the Placing the Company announces that it has exchanged contracts to acquire a 25% interest in City Tower, a landmark, mixed use investment in Central Manchester, for £33 million. The Company is acquiring the property alongside Schroder UK Property Fund and Immobilien Europa Direkt, both managed by Schroder Property Investment Management, for a total price of £132 million. The price reflects a headline net initial yield of 7%.

City Tower provides 615,429 sq ft of office, retail, leisure and hotel accommodation on a three acre island site including 456 car parking spaces. It is located in a prime location within the Central Business District of Manchester with frontage to both Piccadilly Gardens and New York Street. The property is held on a long leasehold basis from Manchester City Council with 218 years unexpired at nil rent.

Completion of the acquisition is subject to freeholder and other consents that the Company expects to be cleared within four to six weeks. The acquisition satisfies the Company's investment criteria by offering:

· An above average income return with the Company receiving an initial rent of £2.4 million per annum on expiry of rent free periods and after non-recoverable property expenses;
· 115 tenancies and mix of uses provides significant diversification with offices representing 61% of rental income, retail and leisure 14%, hotel 15% and ancillary uses 10%. UK Government institutions represent 18% of current rental income;
· A spread of lease expiries with an average unexpired lease term, to the earlier of lease expiry or break, of 10.8 years;
· The offices are let at a low initial rent of £17 per sq ft with key tenants including the National Institute for Health and Care Excellence ('NICE'), the Ministry of Justice, The University of Law Limited and Aegis Outsourcing (UK) Limited;
· Simple co-ownership structure enables the Company to invest in a property it would otherwise not be able to access;
· The potential to add significant value through asset management; and
· Central to Manchester's public transport infrastructure, with the subject property adjacent to Manchester's central tram interchange and close to Manchester's main line rail station.

Following completion of the acquisition the Company will have total cash approximately £15 million and a net loan to value, based on the independent valuation as at 31 March 2014, of approximately 34%.

The Company is progressing further acquisition opportunities and continues to believe that there is potential to enhance future returns to shareholders through a further increase in the size of the Company.

Commenting on the acquisition, Duncan Owen, Head of Property at Schroder Property Investment Management said:

"This transaction demonstrates the effectiveness of our recent share placing, enabling us to quickly deploy capital into an accretive acquisition, whilst minimising cash drag.

"The purchase is consistent with our investment strategy of targeting assets offering good underlying fundamentals where we can add value through a variety of measures supported by a strong and convenient location. The vendor has already made significant improvements via an extensive refurbishment programme and we believe there is further opportunity to deliver rental growth for this element of the asset in the future, underpinned by improving occupational demand. There is also the potential to generate value from asset management of the property."

[jaws6] 02/5/2014 07:39

envirovision
Thank you .

[asmodeus] 02/5/2014 07:34

Not so. A lot of people bought Royal Mail shares that were worth more than they paid for them - for example.

[envirovision] 02/5/2014 07:24

Yes it is jaws but they are claiming an uplift of two properties bought so slightly more.

I find it bizarre you can splash out on a couple of properties then claim the very next day they are worth more than what you actually paid for them, after all surely they are worth what was paid for them.

This seems stupid, but there you have it stupid is as stupid does.

[jaws6] 02/5/2014 07:05

Is 48 p NAV correct in RNS ?
edited it is 48 p nav or 168 million

[skinny] 23/4/2014 14:32

I'm not quite sure why they didn't release this instead of the earlier one.

[elmfield] 23/4/2014 14:00

Whatever else they have so far done a good job
with this.

[skinny] 01/4/2014 14:41

Dividend Declaration

Schroder Real Estate Investment Trust Limited today announces an interim dividend payment in respect of the financial year ended 31 March 2014, of 0.62 pence per share as detailed in the schedule below:

Ex-Dividend Date: 09 April 2014
Record Date: 11 April 2014
Pay Date: 25 April 2014

[janeann] 27/3/2014 20:08

well you could sell you holding and then take up the offer; make a small profit in the process!

That said I plan to take the offer up; think the sector has further to go; and no stamp duty. and the dividend is ok.

[envirovision] 26/3/2014 18:44

Yes it's pointless taking the offer it's for the city only who are spending other peoples money in any case. I would go so far as to say they walked the price up so it does not look so bad to outsiders, I suspect it's all matey stuff.

[peterbill] 26/3/2014 17:54

I have these in my SIPP (YouInvest) and wondered if a SIPP is the best place to hold these?

I am still considering whether to take part in the offer to purchase more ...

After a brief scan of the prospectus,



... there does not seem to be any discount for existing share holders, the offer is at a premium to the NAV, and in any market downturn, you may be able to pick these up at a discount to the offer.

Current price 51p v offer price of 50.25p

Deadline for the offer via my SIPP is 3rd April, decisions, decisions, ...

[skinny] 21/3/2014 07:07

Highlights:

· Proposal to issue up to 80 million New Shares at 50.25 pence per New Share to raise gross proceeds of up to approximately £40.2 million by way of the Placing and Offer.

· Issuing new shares at a premium to the prevailing NAV ensures future fund raises are accretive to the prevailing NAV for existing Shareholders.

· Proposed Placing Programme to enable the Company to raise additional capital in the period from 18 April 2014 to 19 March 2015 as and when it identifies properties that are suitable for acquisition. This should, in turn, enable the Investment Manager to act opportunistically, by making a series of accretive property acquisitions whilst also mitigating the risk of cash drag on Shareholders' funds.

· New equity can potentially be invested in properties offering an attractive yield with scope for adding value through asset management.

· Pipeline of potential acquisitions currently under negotiation and where terms have been agreed with the vendors.

· Future acquisitions are likely to target all the main property sectors, including, office, industrial and retail as well as alternatives to these traditional sectors.

· Opportunity to broaden the Company's investable universe through exposure to additional alternative property types, such a healthcare, hotels and student accommodation.

· At the same time as announcing the proposed equity issuance, the Company announces an estimated NAV per share of 48.7 pence as at 17 March 2014. This reflects an increase of 1.4 pence per share or 3% compared with then unaudited NAV as at 31 December 2013.

· Investors subscribing for New Shares under the Placing and Offer will not be entitled to receive any dividend for the period from 1 January 2014 to 31 March 2014.



Circular and Prospectus:

A Circular and Prospectus in relation to the proposals will shortly be available on the national storage mechanism at www.morningstar.co.uk/uk/NSM, and will also be available on the Company's website at www.srei.co.uk.

[skinny] 14/2/2014 10:46

The Board of Schroder Real Estate Investment Trust Limited announces that Andrew Sykes has retired as a Director with immediate effect. He has served on the Board since May 2004.

The Board is very grateful to Andrew for his leadership over the last ten years.

As previously announced, Lorraine Baldry will succeed Andrew Sykes as Chairman of Schroder Real Estate Investment Trust Limited with immediate effect.

[asmodeus] 23/1/2014 14:08

Supposing you get dividends of £100 a year. If the share price rises by £500 you can take the profit and (assuming you are within your allowance) and, less charges, that is the equivalent of 5 years dividends - and tax-free!

[envirovision] 23/1/2014 12:57

and premium to nav as well

[novision] 23/1/2014 11:17

This continuing share price increase is knackering the yield.
;-)

[redsonning] 10/1/2014 10:05

Those who sold some time ago (when propco share prices started climbing near to and even above NAV) still seem to be under the illusion that prices will fall back significantly in the short term. Yes it would be very nice indeed to be able to buy this kind of company at circa 43p per share, but the whole property market (both retail and commercial) and the whole UK economy is telling us that this is not going to happen.

[skinny] 10/1/2014 07:04

ACQUISITION OF THE ARNDALE CENTRE, HEADINGLEY

On 9 January 2014 Schroder Real Estate Investment Trust Limited (the 'Company') issued 35,592,128 new ordinary shares by way of a placing (the 'Placing') representing 10% of the Company's existing issued share capital. The Placing was completed at 48.25 pence per share ('pps'), raising gross proceeds of approximately £17.2 million and reflecting a premium to the last reported Net Asset Value as at 30 September 2013 of 6.3%.

Following completion of the Placing the Company announces that it has exchanged unconditional contracts to acquire the Arndale Centre in Headingley for £16.23 million from Joint Fixed Charge Receivers. The property comprises a 125,834 sq ft multi-let retail, leisure and office property located in a densely populated suburb of Leeds. The proposed acquisition satisfies the Company's investment criteria by offering:

· Annual rent of £1.57 million per annum, increasing to £1.69 million on expiry of rent free periods, which results in a net initial yield of 9.14% per annum, reducing to 8.73% after non-recoverable expenses;
· A weighted average unexpired lease term of over five years, with exposure to 23 tenants occupying the retail, office and leisure units.
· A strong tenant base with approximately 75% of the income generated by 20 retail and leisure tenants, which include Sainsbury's, Morrisons, Wilkinsons and Pizza Express;
· Scope to add value through asset management;
· Income from offices where there is longer term potential for change of use; and
· The potential to benefit from local transport and infrastructure improvements, with the subject property adjacent to the proposed Leeds Trolley Bus station, a proposed rapid transport system linking Leeds city centre with the suburban areas to the north and south

Following completion of the acquisition, scheduled for 15 January 2014, the Company will have cash of approximately £15 million and a net loan to value, based on the independent valuation as at 30 September 2013, of 40%. The Company is progressing further acquisition opportunities and continues to believe that there is potential to enhance future returns to shareholders through a gradual increase in the size of the Company.

Commenting on the acquisition, Duncan Owen, Head of Property at Schroder Property Investment Management said:

"This acquisition is consistent with our strategy of focussing on assets offering good underlying fundamentals which are capable of adding value through a variety of alternatives uses because of a strong and convenient location. This property already offers high quality retail units which are delivering an attractive initial income yield which is immediately accretive to dividend cover. There is also the potential to generate further income and capital growth from asset management of the upper parts of the property."

[jaws6] 08/1/2014 21:47

Will hear tomorrow how placing gone ,hopefully oversubscribed.

[topvest] 08/1/2014 21:27

Yes, great job done here. They have totally transformed this company in a short period and it is now a very attractive long term income + capital growth vehicle (in that order!).

[joe say] 08/1/2014 07:18

Accretive not dilutive