Schroder Real Estate Investment Trust Limited announces that it has exchanged unconditional contracts to acquire the Arndale Centre in Headingley for £16.23 million from Joint Fixed Charge Receivers. The property comprises a 125,834 ft² multi-let retail, leisure and office property located in a densely populated suburb of Leeds.
Following completion of the acquisition, scheduled for 15 January 2014, the Schroder REIT will have cash of approximately £15 million and a net loan to value, based on the independent valuation as at 30 September 2013, of 40%.
The company is progressing further acquisition opportunities and continues to believe that there is potential to enhance future returns to shareholders through a gradual increase in the size of the company.
Commenting on the acquisition, Duncan Owen, Head of Property at Schroder Property Investment Management said: “This acquisition is consistent with our strategy of focusing on assets offering good underlying fundamentals which are capable of adding value through a variety of alternatives uses because of a strong and convenient location. This property already offers high quality retail units which are delivering an attractive initial income yield which is immediately accretive to dividend cover. There is also the potential to generate further income and capital growth from asset management of the upper parts of the property.”
Source: FTI Consulting
