SREI Schroder Real Estate Investment Trust Limited

 
TIDMSREI 
 
For release 20 September 2021 
 
                 Schroder Real Estate Investment Trust Limited 
                      ("SREIT"/ the "Company" / "Group") 
 
                  ASSET MANAGEMENT AND RENT COLLECTION UPDATE 
 
Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, 
provides an update on recent asset management activity and rent collection 
across its portfolio. 
 
Asset management 
 
35 new lettings, renewals and reviews have exchanged or completed since the 
Full Year Results on 2 June 2021, driven principally by activity on the 
industrial portfolio which represents 40% of the portfolio by value (30 June 
2021).  These transactions will generate £2.0 million per annum of rental 
income and increase contracted rental income by £660,000 per annum. 
Significant leasing activity on key assets includes: 
 
Leeds, Millshaw Industrial Estate (Industrial) 
 
A new ten year lease has completed with Spinko Limited, owner of the luxury bed 
manufacturer Harrison Spinks, for a 34,446 sq ft unit at a rent of £206,676 per 
annum, or £6.00 per sq ft.  This compares with the previous passing rent of £ 
4.75 per sq ft and therefore represents an uplift of £43,058 per annum or 
26.3%.  The letting was is in line with the estimated rental value ('ERV') as 
at 30 June 2021.  The tenant will receive six months' rent free and there is a 
break option in year five. 
 
A five year lease renewal has completed with Yorkshire Metal Finishes Limited 
for a 4,400 sq ft unit at a rent of £30,807 per annum, or £7.00 per sq ft. 
This compares with the previous passing rent of £5.75 per sq ft and therefore 
represents an uplift of £5,507 per annum or 21.8%.  The letting was 16.7% ahead 
of the ERV as at 30 June 2021. 
 
Milton Keynes, Stacey Bushes (Industrial) 
 
A new five year lease has completed with Sevroll UK Limited, an existing 
tenant, for an additional 3,805 sq ft at a rent of £34,236 per annum, or £9.00 
per sq ft.  This compares with the previous passing rent of £7.80 per sq ft and 
therefore represents an uplift of £4,557 per annum or 15.4%.  The letting was 
in line with the ERV as at 30 June 2021.  The tenant will receive two months' 
rent free.  As part of this letting, Sevroll extended their existing lease on a 
3,792 sq ft unit that was due to expire in March 2023 at £34,128 per annum, 
reflecting a rental uplift of 23.9%. 
 
A five year lease renewal completed with MK Autocare Limited for a 3,654 sq ft 
unit at a rent of £31,060 per annum, or £8.50 per sq ft.  This compares with 
the previous passing rent of £6.00 per sq ft and therefore represents an uplift 
of £9,136 per annum or 41.7%.  The letting was also is inline with the ERV as 
at 30 June 2021. 
 
Cheadle, Stanley Green Trading Estate (Industrial) 
 
A five year lease renewal completed with Factory Kitchens for a 2,859 sq ft 
unit at a rent of £40,026 per annum, or £14.00 per sq ft.  This compares with 
the previous passing rent of £8.75 per sq ft and therefore represents an uplift 
of £15,010 per annum or 60.0%.  The letting was in line with the ERV as at 30 
June 2021. 
 
The Company has submitted a planning application for an 80,000 sq ft Net Zero 
Carbon ("NZC") scheme on the 3.4 acre site adjoining the trading estate which 
will be determined at a planning committee in October.  Assuming planning is 
secured, the Company will proceed with the development of 11 warehouse and 
trade units at a tendered total cost of approximately £8 million.  The rental 
value of the new development is approximately £950,000 per annum. 
 
Bedford, St. John's Retail Park (Retail Warehouse) 
 
Following the completion of lettings with Lidl and Home Bargains, a vacant 
9,919 sq ft unit has been let to Bensons for Beds at a rent of £130,000 per 
annum, or £13.00 per sq ft.  This is in line with the ERV as at 30 June 2021. 
The remaining vacant unit at St. John's Retail Park is under offer at a rental 
level above the ERV as at 30 June 2021. 
 
Rent collection 
 
Rent collected for the quarter ending 30 September 2021 currently totals 94% of 
contracted rents, which is 6% ahead of the previous quarter.  The breakdown 
between sectors is 99% of office rent collected, 100% of industrial rent 
collected and 81% relating to retail, leisure and ancillary uses collected. 
 The Company remains in active dialogue with its tenants for all rents due to 
be paid and expects to recover a significant portion of the outstanding amount. 
 
The Company will provide a further update when it announces its interim results 
to 30 September 2021 and quarterly dividend during the week commencing 22 
November 2021. 
 
                                    -ENDS- 
 
For further information: 
 
Schroder Real Estate Investment Management   020 7658 6000 
Limited: 
Nick Montgomery / Matt Riley 
 
FTI Consulting:                              020 3727 1000 
Dido Laurimore / Richard Gotla / Ollie 
Parsons 
 
 
 
END 
 
 

(END) Dow Jones Newswires

September 20, 2021 02:00 ET (06:00 GMT)

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