Schroder Real Estate sells Basingstoke warehouse – On 7 March 2019, the UK-focused REIT announced that it has scheduled sale of its Basingstoke retail warehouse for 29 March 2019. The sale has been confirmed for £12m, which compares to an independent valuation of the property at 2018 year end, pricing it at £12.5m. This reflects a net initial yield of 5.4%. The property totals 35,290 square feet of space, and will be let to Wickes Building Supplies Limited for another fourteen years at £692,250 per year. Based on the disposal price of the asset, this property has generated an ungeared total return of 7.5% per year since Schroder’s acquisition in 2007, which beats the MSCI benchmark of 4% per year.
This disposal comes off the back of Schroder Real Estate’s strategy to sell assets that limit upside, and after this sale, Schroder’s net loan to value will fall from 29% to 27%.
SREI – Schroder Real Estate sells Basingstoke warehouse