22nd Dec 2015 10:10
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd on Tuesday said it has agreed to sell Technology House in Fleet, Hampshire at a premium to book value.
The trust has agreed to sell Technology House for GBP2.2 million, which compared to an independent valuation on September 30 of GBP1.2 million. The buyer has paid a non-refundable deposit of GBP220,000 and completion is due on February 12.
Technology House, an office property, produces a rent of GBP72,954 per annum and is 77% vacant as a percentage of rental value.
"The disposal of Fleet at an 83% premium to the valuation is consistent with the strategy of selling smaller properties at premium prices to fund value enhancing asset management initiatives," Nick Montgomery, Head of UK Investment at Schroder Real Estate Investment Management, said.
Elsewhere, the trust said two new lettings and a lease variation have completed at The Galaxy in Luton, north of London, at a combined rent of GBP489,760 per annum, compared to the independent valuation rental value of GBP360,000 per annum as recorded on September 30.
"The lettings at Luton improve tenant mix and enhance both income and value," Montgomery said.
Shares in the trust were up 1.7% at 60.50 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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