Schroder Real Estate Investment Trust has announced that has exchanged unconditional contracts to sell Technology House in Fleet (pictured) for £2.2m. This is a marked premium (83%) to an independent valuation of the property as at 30 September 2015 of £1.2 million. The trust says that the buyer has paid a non-refundable deposit of £220,000 and completion is due on 12 February 2016. The office property produces a rent of £72,954 per annum and is 77% vacant as a percentage of rental value, according to the trust, who also say that the sale is consistent with their strategy of selling smaller properties at premium prices to fund value enhancing asset management initiatives elsewhere.
The company has also announced that two new lettings and a lease variation have been completed at The Galaxy (a leisure property in Luton) at a combined rent of £489,760 per annum. The company says that this compares to the independent valuation rental value of £360,000 per annum as at 30 September 2015 results in the property being fully let with an improved tenant mix. These agreements also increase the net initial yield, based on the valuation as at 30 September 2015 of £11.85m, from 5% to 10% and also increase the average unexpired lease term, assuming tenants break at the earliest opportunity, from 11.3 years to 13.2 years.
Schroder Real Estate sells Technology House in Fleet for £2.2m : SREI