Schroder REIT divests office asset in Nottingham

Schroder REIT divests office asset in Nottingham

Schroder Real Estate Investment Trust has agreed to sell The Arc, a 44,602 sq ft office asset in Nottingham.

The disposal price represents a 39% premium to the 31 December 2021 independent valuation of £9.35 million and reflects a net initial yield of 4.5%. Completion is scheduled on 28 February 2022.

Situated on the edge of Nottingham city centre, the company acquired the office asset in August 2018.

The asset produces a net rent of £622,210 per annum with a WAULT of 1.7 years. Based on the disposal price, the asset has generated an ungeared total return of 12.1% per annum since acquisition, compared with the All Property MSCI Benchmark for the same period of 5.4% per annum, and MSCI All Offices for the same period of 3.5% per annum.

Nick Montgomery, Fund Manager of SREIT, commented: “This sale demonstrates our ability to leverage the expertise of sector specialists to generate strong returns for shareholders. Having completed our business plan for this well located asset, we see attractive opportunities to redeploy the capital which, alongside the Company’s pipeline of ongoing asset management activity, should support SREIT’s ambition to deliver a progressive and sustainable dividend.”