Schroder Real Estate has announced the completion of four disposals for a combined price of GBP12.86 million reflecting an average net initial yield of 3.4%. The combined price was in line with the last reported valuation as at 31 December 2015 but reflected an uplift of GBP2 million or 18.5% compared with the previous year end valuation as at 31 March 2015. The disposals are summarised as follows:
3 – 6 Abbeygate Street, Bath
The secondary retail parade located in Bath city centre was sold for GBP4.7 million on 10 May 2016. The price reflected a net initial yield of 4.6%, increasing to 5.6% on expiry of rent free periods. The property was let to retailers including C.E.X Limited and Cotswold Outdoor Limited with an average lease term of 7.4 years.
Clumber Street, Nottingham
The retail unit was sold for GBP2 million on 1 April 2016 with the price reflecting a net initial yield of 5.2% on expiry of a rent free period. This disposal follows the completion of a letting to Tortilla Mexican Grill Limited at a rent of GBP110,000 per annum.
St. Georges Court, New Malden
Following exchange of contracts in April 2015, the disposal of the mixed use office and leisure property completed as planned on 4 April 2016 at GBP4 million. The price reflected a net initial yield of 5.6%.
Technology House, Ancells Business Park, Fleet
Following exchange of contracts in December 2015, the disposal completed on 25 February 2016 at GBP2.2 million. The secondary office property was 77% vacant and the price reflected a net initial yield, before non-recoverable expenditure, of 3.1%.
SREI : Schroder Real Estate sells four non-core assets