Schroder Real Estate Investment Trust Ltd - Retail Asset Management Update
PR Newswire
London, February 25
For release 26 February 2019
Schroder Real Estate Investment Trust Limited
("SREIT"/ the "Company" / "Group")
RETAIL ASSET MANAGEMENT UPDATE
Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has completed two new lease agreements at Bedford and Milton Keynes which improve the portfolio's defensive qualities.
St. John's Retail Park, Bedford
A lease agreement has been exchanged with TJ Morris Limited (trading as Home Bargains) for a 14,500 sq ft store on a fifteen-year term at £190,000 per annum. This space makes up the balance of the vacant former Homebase where an agreement has already been exchanged with Lidl to lease a 21,630 sq ft store on a fifteen-year term at £335,000 per annum. The lettings are subject to securing planning consent and SREIT delivering a refurbished unit with associated improvements to the car park and wider site at a cost of approximately £3.7 million.
Matalan, Milton Keynes
An agreement has been exchanged with Matalan that extends its current lease by eight years until March 2029, at a new rent of £572,000 per annum. As part of the transaction Carpetright, who currently sublet 8,500 sq ft from Matalan, will become a direct tenant paying £95,000 per annum on a lease until March 2021. The new lease to Matalan is conditional on improvement works to the roof, cladding and car park at a cost of approximately £1 million.
These transactions are part of an active pipeline of retail asset management and realisations. In addition to the previously announced realisation of a retail asset in Portsmouth for £1.6 million, contracts have been exchanged to sell a retail property in Yeovil for £300,000 which is in line with the independent valuation at 31 December 2018. The Company will keep the market updated as further realisations are completed post asset management initiatives.
-ENDS-
For further information:
| Schroder Real Estate Investment Management Limited: Duncan Owen / Nick Montgomery / Frank Sanderson | 020 7658 6000 |
| Northern Trust: Sean Walsh / James Machon | 01481 745529 |
| FTI Consulting: Dido Laurimore / Richard Gotla | 020 3727 1000 |
