Schroder Real Estate is spending a large chunk of the money it raised in November on a 50% interest in the University of Law campus in Bloomsbury, London W1. Schroder Real Estate is spending £34m for its half, alongside Schroder UK Property Fund, also managed by Schroder Real Estate Investment Management, for a total price of £68m. The price reflects a net initial yield of 4%.
The freehold property comprises two parcels of land totalling 0.8 acres on which there are four buildings totalling 85,814 sqftwith a mix of office and D1 (educational) planning use. The property is located approximately 400 metres north of Tottenham Court Road station and one block away from Bedford Square.
The University of Law has entered into a new 12 year lease without tenant breaks at a rent of £2.869m. The lease benefits from five yearly, upwards only rent reviews to the higherof (i) the movement in the Retail Price Index (`RPI’), with the RPI movement subject to a minimum uplift of 1% per annum compounded and a maximum uplift of 4% per annum compounded; or (ii) the open market rental value without a maximum uplift. The current rent equates to £33.43 per sq ft.
SREI : Schroder Real Estate buys university building in London