Schroder Real Estate Investment Trust Ltd - Retail Asset Management Update
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.
For further information:
|Schroder Real Estate Investment Management Limited:|
Duncan Owen / Nick Montgomery / Frank Sanderson
|020 7658 6000|
Sean Walsh / James Machon
Dido Laurimore / Richard Gotla
|020 3727 1000|