LONDON (Alliance News) - Schroder European Real Estate Investment Trust PLC on Thursday said its focus continues to be on building a portfolio of properties which provide attractive income distribution, in its first set of interim results since its initial public offering in December.
The trust, which invests in commercial real estate in Continental Europe, posted a net asset value of EUR159.4 million, or 131.5 cents per share, at March 31, and said since joining the main market in December, it has committed to acquire five investments in Germany and France.
Schroder European Real Estate said the investments total EUR109.0 million equivalent to around 70% of Schroder European Real Estate's equity available for investment, and around 50% of the company's total investment capacity, including debt financing. To date, Schroder European Real Estate has raised GBP121.7 million in equity.
Schroder European Real Estate said it was focusing on maintaining a disciplined investment approach, and will be continuing to grow the portfolio throughout the rest of its financial year to the end of September.
"Total returns from investment grade European real estate are forecast to be 7.0% to 9.0% per year between 2015 and 2019. In the period since the company's launch we have been focused on acquiring the initial portfolio and there are a number of additional opportunities currently in negotiations," the trust said in a statement.
"Although investor demand for European real estate remains competitive in the current low interest rate environment, we are confident that new investment opportunities will be identified to create a portfolio which should deliver long term performance," the trust added.
Schroder European Real Estate said its favoured locations were cities across Continental Europe with a diverse economic base, growing populations, improving infrastructure and liquid occupational/investment markets.
"Following on from the successful initial public offering in December, we are pleased to have established a footprint in a number of growth cities in Europe, across different property sectors, in a relatively short period of time. This is in line with our stated acquisition strategy of investing in assets that provide attractive income distribution with potential for long-term income and capital growth through active asset management," said Non-Executive Chairman Julian Berney.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Schroder Eur.r (SERE)