(Alliance News) - Schroder European Real Estate Investment Trust PLC on Monday said that it has bought a freehold industrial warehouse in the Netherlands for EUR11 million.
The purchase by the European-focused investing firm reflects a net initial yield of 5.6%.
The 9,115 square metre property is fully let to WA Schuurman Beheer BV, an electrical engineering and renewable energy specialist. The 20-year triple net lease, with a break at 15 years, benefits from annual indexation.
"Whilst we continue to be patient in our investment strategy, this was a rare opportunity to acquire a highly sustainable asset with a strong and visible income profile that enhances the company's sector weighting, average unexpired lease term and credit strength," said Jeff O'Dwyer, fund manager at Schroder Capital Real Estate.
Schroder European Real Estate shares were trading 1.0% lower at 81.80 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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Schroder Eur.r (SERE)