Schroder REIT strikes flurry of lettings

Schroder Real Estate Investment Trust has made a raft of new lettings across its industrials, office and retail warehousing portfolios. In a stock exchange update, the REIT said it had made 32 lettings, renewals and rent reviews since 1 October. Fund manager Nick Montgomery said: “This has been an encouraging period of leasing activity, with a high volume of deals closed and under offer. We are also working up a pipeline of new asset management initiatives to further grow earnings, with a focus on delivering projects to a high sustainability specification such as our Stanley Green operational net zero warehouse development.” Siemens has taken a 10-year lease for a 13,881 sq ft unit at the REIT’s net zero warehouse development at Stanley Green Trading Estate near Manchester, which is now 56% let. The Siemens deals is for £15.29 per sq ft, in line with the September ERV, and is 33% above the original underwrite. The tenant will have six months rent-free and a break at year five. At the same development, Licata Building Systems has taken a 10-year lease for a 10,802 sq ft unit at £15.20 per sq ft, with five months rent free and a break at year five. A further 19,340 sq ft at the scheme is either under offer or in advanced negotiations, the REIT said. Jaguar Land Rover has signed a five-year lease renewal at a 50,139 sq ft warehouse unit Heathcote Industrial Estate in Warwick, which the company uses as a training academy, at a rent of 25% to £8.23 per sq ft. JLR has six months rent-free and will receive a contribution towards improvement works supporting electric vehicles. In the REIT’s office portfolio, the University of Law has extended its lease on 85,814 sq ft from 2026 to 2029 at a 28% rent increase to £55 per sq ft. SREIT said its next phase of the site is to  “progress plans for the longer-term potential re-development post 2029”, giving consideration to “specific demands of occupiers in the life sciences, technology, and higher education sectors”. In the retail warehouse portfolio, Starbucks has taken a 15-year lease for a drive-thru unit at St John’s Retail Park in Bedford at £86.11 per sq ft, and a 15-year lease at £58.33 for a drive-thru at 103 Watling Street in Bletchley.