(Alliance News) - Schroder European Real Estate Investment Trust PLC on Monday said it has acquired a logistics property in Nantes, France for EUR6.2 million, reflecting a net initial yield 5.5%.
The 8,663 square metre warehouse has currently let to Hacthette Livre, which is part of French media group Lagardere Sca, with an unexpired lease term of seven years.
The acquisition is expected to be completed in August, and is subject to a waiver of pre-emption rights in the French market.
"We have been seeking to further diversify the company's portfolio by both number of assets and tenants, as well as increase its allocation to the high growth industrial sector. This acquisition achieves these objectives increasing the portfolio's industrial weighting from 20% to 22%, whilst deploying a portion of the proceeds from the recent sale of Boulogne Billancourt," said Laurent Dubos, head of Real Estate Investment, France.
Shares in Schroder European REIT were up 0.7% at 98.69 pence on Monday in London, while its Johannesburg shares were 0.2% higher at ZAR19.03.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Schroder Eur.r (SERE)