Schroder acquires French logistics asset for €8.4m

Schroder acquires French logistics asset for €8.4m

Schroder European Real Estate Investment Trust has exchanged contracts to purchase a freehold logistics property in Rumilly, southern-eastern France, for €8.6m, reflecting a net initial yield of 7.0%.

 

The 16,700m² 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 ?ompany’s winning centres strategy, it is located in a region that is forecast to grow faster than the national average and is leased off affordable/sustainable rents, in an area where there is a 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.

 

Thomas Guyot, Head of Real Estate Investment, France at Schroder REIM commented: "This is a strong fit for the ?ompany 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."

 

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