17 May 2017
Exeter
Reporter: Theo Andrew

Schroders bags two more office assets


Schroder Real Estate has acquired two more assets on behalf of its Regional Office Property Unit Trust (ROPUT) for a combined £27.2 million.

The Senate in Exeter and London Court in Reigate were acquired for £15.7 million and £11.5 million, respectively, reflecting a total net initial yield of 7.1 percent.

Located in Exeter city centre, The Senate is a four-story office building spanning 69,000 square feet. Tenants include Reuters, and law firms Trower & Hamlins and Arbuthnot Latham & Co.

London Court, situated it walking distance from Reigate mainline station, totals 35,000 square feet and houses tenants such as Tesco Underwriting and Hyundai Capital.

According to Schroders, ROPUT is targeting undersupplied regional office markets in towns with strong a diversified local economies.

It is ROPUT’s fifth and sixth acquisition since its launch in 2016 with a further £130 million ready to invest.

Tom Newman, investment manager at Schroder Real Estate, said: “The Senate and London Court are modern, well built buildings let to good covenants in locations that have very little grade A office supply and little to no speculative development in the pipeline.”

Stephen Cahoon, head of asset management UK at Cromwell Property Group, said: “Having created well specified office environments aligned to the requirements of today’s occupier and driven both assets to 100 percent occupancy we are delighted to have completed a sale to Schroders.”

Doherty Baines and CBRE acted for Schroder Real Estate.

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