Schroder Real Estate Investment Trust has exchanged unconditional contracts to sell St. Augustine’s Courtyard in Bristol to the University of Bristol for GBP 11.75 million. The sale price compares with the independent valuation as at 31 December 2016 of GBP7.2 million and completion is due on 7 April 2017.
St. Augustine’s Courtyard is a vacant 31,785 sq ft city centre office property that has just undergone a major refurbishment. The plan was to let the property.
The disposal to the University of Bristol, who are acquiring for their own occupation, enables the Company to crystallise significant performance following refurbishment without taking any letting risk. The disposal also reduces the portfolio void rate, with the property representing 2% of the total void as at 31 December 2016, calculated as a percentage of rental value. Following completion the portfolio void rate will reduce to approximately 6%.
The Company is considering a number of initiatives which should lead to successful redeployment of the disposal proceeds but will continue to take a disciplined approach.
SREI : Schroder Real Estate sells St Augustine’s courtyard in Bristol