Schroder NAV boosted by Aviva lease exit fee
Schroder REIT has posted a 0.25% increase in net asset value for the three months ended 31 December.
The firm’s NAV grew from £357.7m to £358.6m.
The rise came amid a £4.5m uptick in net revenue boosted in part by Aviva Life and Pension paying £1.2m to terminate its lease early at the Portergate in Sheffield.
Schroder REIT has posted a 0.25% increase in net asset value for the three months ended 31 December.
The firm’s NAV grew from £357.7m to £358.6m.
The rise came amid a £4.5m uptick in net revenue boosted in part by Aviva Life and Pension paying £1.2m to terminate its lease early at the Portergate in Sheffield.
Following Aviva’s lease termination, the firm’s sub-tenants will continue to pay £355,275 per year, reflecting an average rent of £10.60 per sq ft.
Schroder plans to refurbish vacant space totalling 16,000 sq ft at the 49,489 sq ft office to boost rental income to £14 per sq ft.
During the quarter, Schroder also saw a company exit a retail park as part of a CVA arrangement. Homebase vacated a 36,214 sq ft unit. The retailer was previously paying £353,000 per year and their departure resulted in a 4% quarterly decline in the valuation of St John’s Retail Park in Wolverhampton.
At the same time, Schroder has made progress on filling the space, signing a conditional agreement for lease with Lidl for a supermarket totalling 21,630 sq ft. Subject to securing planning consent and delivering a refurbished unit, Lidl will complete a new 15-year lease at £335,000 pa.
Discussions are also ongoing in connection with letting the remaining space to another retailer. Assuming planning consent is secured, the former Homebase will be refurbished and extended at a cost of approximately £3.7m.
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