19th Aug 2014 09:35
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd Tuesday said it has agreed to acquire Stacey Bushes Industrial Estate in Milton Keynes for GBP9.2 million from an unnamed vendor.
The property produces a rent of GBP755,726 a year, which results in a net initial yield of 7.76%.
The freehold property comprises a 213,536-square-foot multi-let industrial estate immediately adjacent to the A5 dual carriageway on the west side of Milton Keynes, north of London. The property, which was originally constructed in the 1980s, has recently undergone an extensive refurbishment to provide a modern accommodation with unit sizes ranging from 3,700 square feet to 10,000 square feet.
The property is currently let to 12 tenants with an average unexpired lease term, assuming all tenant breaks are exercised, of 4.5 years.
Following completion of the acquisition, which is expected to take place on August 21, the company said it will have around GBP14.2 million in cash and a net loan-to-value, based on the independent valuation as at June 30, of around 32%.
Schroder Real Estate shares were quoted down 0.2% at 53.91 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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