Retail Asset Management Update

Schroder Real Estate Investment Trust Ltd - Retail Asset Management Update

PR Newswire

London, February 25

For release 26 February 2019

Schroder Real Estate Investment Trust Limited("SREIT"/ the "Company" / "Group")

RETAIL ASSET MANAGEMENT UPDATE

Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has completed two new lease agreements at Bedford and Milton Keynes which improve the portfolio’s defensive qualities.

St. John’s Retail Park, Bedford

A lease agreement has been exchanged with TJ Morris Limited (trading as Home Bargains) for a 14,500 sq ft store on a fifteen-year term at £190,000 per annum. This space makes up the balance of the vacant former Homebase where an agreement has already been exchanged with Lidl to lease a 21,630 sq ft store on a fifteen-year term at £335,000 per annum. The lettings are subject to securing planning consent and SREIT delivering a refurbished unit with associated improvements to the car park and wider site at a cost of approximately £3.7 million. 

Matalan, Milton Keynes

An agreement has been exchanged with Matalan that extends its current lease by eight years until March 2029, at a new rent of £572,000 per annum. As part of the transaction Carpetright, who currently sublet 8,500 sq ft from Matalan, will become a direct tenant paying £95,000 per annum on a lease until March 2021. The new lease to Matalan is conditional on improvement works to the roof, cladding and car park at a cost of approximately £1 million. 

These transactions are part of an active pipeline of retail asset management and realisations. In addition to the previously announced realisation of a retail asset in Portsmouth for £1.6 million, contracts have been exchanged to sell a retail property in Yeovil for £300,000 which is in line with the independent valuation at 31 December 2018. The Company will keep the market updated as further realisations are completed post asset management initiatives. 

-ENDS-

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