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Schroder European REIT Buys Brittany Warehouses For EUR17 Million

LONDON (Alliance News) - Schroder European REIT PLC said Monday it has acquired two logistic ...

Alliance News 1 April, 2019 | 7:17AM
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LONDON (Alliance News) - Schroder European REIT PLC said Monday it has acquired two logistic warehouses in Brittany in northern France for a combined EUR17.3 million.

Schroder European explained the two buildings in Rennes were adjacent to one another and have nearly 24,000 square foot of space. The space is currently let on a 12-year lease to the logistics subsidiary of fashion retailer Groupe Beaumanoir.

The buy will have a net initial yield of 5.9%.

The acquisition will be part funded through a new EUR8.6 million loan facility which will be secured against the Rennes properties. The five-year loan will have a margin of 1.4% above the three-month Euro Interbank Offered Rate.

Schroder Real Estate Investment Management manager Jeff O'Dwyer said: "The 12 year lease on this asset to a strong covenant in a fast growing region of France makes this another excellent addition to our already high-quality portfolio of assets."

"We have now deployed all of the proceeds from last year's sale of low yielding retail assets into five warehouse investments, with a blended net income yield of approximately 6.4%, further diversifying the portfolio and increasing its allocation to the high growth industrial and logistics sector", O'Dwyer added.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Schroder European Real Estate Inv Trust 116.00 GBX -2.11 -

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Alliance News

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