Schroder European Real Estate Investment Trust (SERE) has completed the acquisition of two logistics warehouses near Rennes, in Brittany, France, for €17.3m, reflecting a net initial yield of 5.9%. The acquisition was partly funded with a new loan facility totalling €8.6m, which has been secured against the Rennes property. Providing 23,852m² of institutional quality space across two adjacent buildings, the property is let to C-Log, the logistics subsidiary of Groupe Beaumanoir, on a 12-year lease. The property is located at the junction of two major arterial routes and benefits from the excellent sea, high-speed rail and air connectivity.
Jeff O’Dwyer, of Schroder REIM, commented: “The 12-year lease on this asset to a strong covenant in a fast-growing region of France makes this another excellent addition to our already high-quality portfolio of assets. We have now deployed all of the proceeds from last year’s sale of low yielding retail assets into five warehouse investments, with a blended net income yield of approximately 6.4%, further diversifying the portfolio and increasing its allocation to the high growth industrial and logistics sector.”
Following this acquisition, the SERE portfolio comprises 13 properties with a value of approximately €240m and a blended net initial yield of 6.2%. The portfolio’s sector allocation is 46% office, 27% retail, 19% industrial and 8% mixed use.
