Following the announcement of 7 May 2014, Schroder announced that it has completed the acquisition of a 25% interest in City Tower in Manchester for £33 million (approx. €41.3 million). The price reflects a headline initial yield of 7%. The Company has acquired the property alongside Schroder UK Property Fund and Immobilien Europa Direkt, both managed by Schroder Property Investment Management, for a total price of £132 million (approx. €165.1 million).
Following completion of the acquisition the Company will have total cash approximately £16 million (approx. €20 million)and a net loan to value, based on the independent valuation as at 31 March 2014, of approximately 33.4%.
The Company is progressing further acquisition opportunities and continues to believe that there is potential to enhance future returns to shareholders through a further increase in the size of the Company.