Schroder Real Estate Investment Trust has exchanged unconditional contracts to sell the Wickes retail warehouse in Basingstoke for c.€14m (£12m). The disposal is consistent with SREIT’s strategy to sell lower-yielding retail assets that offer limited upside from asset management. Based on the disposal price, the asset has generated an ungeared total return of 7.5% per annum since acquisition in 2007 compared with the MSCI Benchmark for the same period of 4% per annum.
The property comprises a modern retail warehouse unit totalling 35,290ft² let to Wickes Building Supplies for a further fourteen years at €805,593 (£692,250) per annum or €22.69 (£19.50) per ft². The lease has upwards only open market rent reviews. Wickes are currently SREIT’s third-largest tenant overall and its largest retail tenant. Following the disposal of the subject property, it will become the company’s fourteenth largest tenant overall with a retail warehouse in Chester let for 14 years at €465,492 (£400,000) per annum.