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Schroder European Real Estate Investment Trust Plc Completes Purchase Of €30 Million Value Add Office Property
Schroder European Real Estate Investment Trust PLC
(Incorporated in England and Wales)
Registration number: 09382477
JSE Share Code: SCD
LSE Ticker: SERE
ISIN number: GB00BY7R8K77
2 February 2017
SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC COMPLETES
PURCHASE OF €30 MILLION VALUE ADD OFFICE PROPERTY IN PARIS,
REFLECTING A 9.5% YIELD
-Strategic value-add acquisition alongside Grand Paris extension - attractive yield,
multi-tenanted, with income growth potential-
Further to the announcement made on 28 October 2016, Schroder European Real Estate
Investment Trust Plc (“SERE” or the "Company"), the company investing in European
growth cities, is pleased to announce it has completed the purchase of a multi-tenanted
office property in Saint Cloud, Ile de France, Paris, for approximately €30 million.
This is the eighth acquisition by SERE, which has now invested €185 million at a blended net
initial yield of approximately 6.3%, in selected liquid and established Western European
growth cities.
Fully let to 12 tenants, the c. 15,800 sqm office building represents the best office space
within the larger 65,000 sqm complex, benefiting from good natural light, divisible floor plates
and attractive views over Paris. The current average WAULT is 5 years, with annual lease
indexation and affordable rents. The strategic plan for the asset is to maximise income
returns, stabilise the existing rent roll and grow rents over time. With an established presence
in the Paris market, Schroder REIM is well positioned to add value to the investment.
The new Grand Paris public transport connection will be completed alongside the building in
2025, which is expected to provide significantly improved accessibility to this part of Paris.
Saint Cloud is a mixed use office and residential area that already benefits from good
transport connectivity, being in close proximity to the Paris ring road and with nearby metro,
train and tramway stations.
The acquisition is entirely consistent with the Company’s stated strategy of investing in
growth cities benefiting from urbanisation, demographic change and infrastructure
improvements.
Tony Smedley, SERE Fund Manager, commented:
"This off-market acquisition, secured on favourable terms, further demonstrates our ability to
identify assets that are accretive to the income profile of the Company, as well as the
competitive advantages afforded to us through our well-established presence in the French
real estate market. The purchase price represents a significant discount to replacement
cost.”
“The Ile de France region is growing more quickly than the domestic market and has deep
occupation and investment demand with liquid markets. We have a healthy pipeline of assets
in growth cities across a number of Western European markets, with evidence suggesting
these will become increasingly attractive real estate centres.”
“We continue to focus on fulfilling our growth ambitions and are confident of delivering on our
stated IPO strategy.”
Enquiries:
Duncan Owen/Tony Smedley
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
FTI Consulting
Dido Laurimore/Richard Gotla/ Ellie Sweeney Tel: 020 3727 1575
JSE Sponsor: PSG Capital Proprietary Limited
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