16th Sep 2014 07:53
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd Tuesday said it has agreed to sell its Olympic Office Centre in Wembley to Network Stadium Housing Association Ltd in a deal worth GBP15.4 million, reflecting a net initial yield of 6.7%.
The property was valued at GBP10.8 million in June.
Network, a tenant in the building, has paid a 10% deposit and completion is due in December to coincide with expiry of its lease. The company will continue to receive Network's rent equating to GBP514,000 a year during the period between exchange and completion.
The 74,000 square foot Olympic Office Centre is currently let to three tenants, including Network, and produces a total rent of GBP1.1 million a year. All of the leases within the building expire on or before February 24, 2015.
Schroder Real Estate shares were quoted down 0.8% at 2,728.00 pence Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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