Schroder sells industrial at 32% premium to March valuation

Schroder Real Estate Investment Trust has sold Southlink, a 26,975 sq ft single-let industrial asset in Portsmouth, Hampshire, for almost one-third above its most recent valuation. The property was valued at £4.9m in March this year and has been sold for £6.5m to an unnamed buyer. The sale price reflects a net initial yield of 3.2%. Southlink, which Schroder bought in July 2004, produces a net rent of £225,000 pa with just 2.4 years left on its lease. The asset is one of a number the business is considering selling. Alongside the sale, Schroder has also announced the completion of 17 new lettings, rent renewals and reviews since the end of Q1. Together it has secured new lettings, renewals and reviews on 427,121 sq ft of space at a rent of £2.7m pa. Key deals include a rent review with Siemens at Langley Park industrial estate in Chippenham, Wiltshire, where Schroder has secured a 26% increase in rent to £1.2m pa, plus two 15-year prelets to Starbucks for drive-throughs at its St John’s Retail Park in Bedford and at Watling Street in Bletchley, Buckinghamshire. The rents are capped at £145,000 pa and £100,000 pa respectively.   To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews