21 June 2018
Acquisition of a French logistics asset
Schroder European Real Estate Investment Trust Plc (the "Company"), the company investing in European growth cities, is pleased to announce that it has exchanged contracts to purchase a freehold logistics property in Rumilly, southern-eastern France, for €8.6 million, reflecting a net initial yield of 7.0%.
The 16,700 sqm warehouse is fully let to a strong covenant, a subsidiary of the global food and drink manufacturer Nestlé, with an unexpired lease term of c. 7.5 years. In line with the Company's winning centres strategy, it is located in a region that is forecast to grow faster than the national average1 and is leased off affordable / sustainable rents, in an area where there is limited supply.
Close to the A41/A43 autoroutes, Rumilly serves the major metropolitan areas of Lyon and Geneva, which have a combined population of over 2.5 million people living within a 90 minute drive.
Commenting on the acquisition, Thomas Guyot, Head of Real Estate Investment, France at Schroder REIM commented:
"This is a strong fit for the Company as we look to diversify our portfolio, providing us with exposure to the French logistics market which is currently experiencing strong occupational demand and rental growth. Located in an economically buoyant region of France, the warehouse benefits from its close proximity to the large conurbations of Lyon and Geneva. It is one of a number of investments that Schroder REIM is in exclusivity on, as it looks to deploy the proceeds due to be received from the sale of the two French Casino supermarkets, at the end of July."
The purchase is subject to a waiver of statutory pre-emption rights in the French market and is therefore expected to complete at the end of August 2018.
1. Source: Oxford Economics, March 2018
Enquiries:
Duncan Owen/Jeff O'Dwyer
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
Dido Laurimore/Richard Gotla/Ellie Sweeney Tel: 020 3727 1000
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