Schroder Real Estate Investment Trust Limited Acquires Retail Warehouse

Posted: 19th November 2014 09:17

The Company announces that it has acquired a retail warehouse in Bletchley, Milton Keynes for £9.9 million, reflecting a net initial yield of 6.5%. The property is let to Matalan Limited for a further 6.5 years at a rent of £675,800 per annum.

The property comprises a freehold, 51,488 sq ft, retail warehouse in a prominent position on the south side of Milton Keynes adjacent to the junction of Watling Street and the A5 dual carriageway. The property adjoins a Tesco superstore and is a short distance from complementary retail warehouse occupiers including IKEA and retail parks such as Beacon Retail Park.

The property has a flexible planning consent permitting all retail uses except for food and has a site density of 35% with potential for future intensification of use. The rent paid by Matalan equates to £13.14 per sq ft which compares to the rent at Beacon Retail Park of approximately £20 per sq ft. Matalan have sublet 8,500 sq ft of the property to Carpetright Plc at a rent equating to £16.25 per sq ft.

Following completion of the acquisition the Company has cash, after adjusting for transaction costs and this quarter's dividend payment, of £15.6 million. This results in a net loan-to-value, based on the independent valuation as at 30 September 2014, and prior to any equity raised under the proposed placing announced on 17 November, of approximately 31%.

Related articles

bodrum escort istanbul masöz

Subscribe to our newsletter

Sign up here and get the latest news and updates delivered directly to your inbox

You can unsubscribe at any time