7th Mar 2019 13:07
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd on Thursday said it has agreed to sell the Wickes retail warehouse in Basingstoke for GBP12 million.
The price compares to the independent valuation as at December 31 of GBP12.5 million and reflects a net initial yield of 5.4%. The disposal is scheduled to complete on March 29.
The property comprises a modern retail warehouse unit totalling 35,290 square feet let to Wickes Building Supplies Ltd for 14 years at GBP692,250 per annum.
Wickes are currently the company's third largest tenant and its largest retail tenant. Following the disposal of the warehouse, Wickes will become Schroder REIT's fourteenth largest tenant overall with a retail warehouse in Chester let for 14 years at GBP400,000 per annum.
Schroder REIT said the disposal is consistent with its strategy to sell lower yielding retail assets that offer limited upside from asset management.
The company's shares were trading 1.3% lower on Thursday at 57.34 pence each.
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