Schroder Real Estate Investment Trust has exchanged contracts to sell a warehouse in Acton to an institutional purchaser for €21.5m (£18.9m). Located in Allied Way Industrial Estate, the property comprises a 64,614ft² and is let to Booker Limited until September 2026 at €797,268 (£700,000) per annum. The price, therefore, reflects a net initial yield of 3.5%. Based on the disposal price, the asset has generated an ungeared total return of 14.3% per annum since acquisition in 2005, compared with the MSCI Benchmark for the same period of 5.7% per annum.
The disposal is consistent with SREIT’s strategy to sell lower yielding assets and to realise gains from asset management. Since 31 December 2018, SREIT has completed or unconditionally exchanged contracts to sell five assets (including the Booker unit) for €78.5m (£68.9m), which reflect an average net initial yield of 3.1%. The deal follows the previously announced disposal of Victory House at a price of €41.1m (£36.1m).