16th Feb 2016 15:37
LONDON (Alliance News) - Schroder European Real Estate Investment Trust PLC on Tuesday said it has agreed to acquire two office buildings in Germany, one in Stuttgart and the other in Hamburg, for EUR28.9 million at a blended net initial yield of 6.0%.
The assets are fully income producing and multi-let to a combination of governmental and private sector tenants, Schroder European REIT said, with an average unexpired lease term of about 8.5 years. Both properties have either been constructed or "substantially" refurbished in the last decade, are located in "established" office sub-markets and are "well connected" to public transport.
"We are delighted to have committed to acquire these office assets located in key German cities. They add important scale, diversification and long income characteristics to the portfolio," Chairman Julian Berney said.
Shares in Schroder European REIT were down 2.1% at 105.50 pence on Tuesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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