Schroder Real Regulatory News (SREI)

19 August 2014 Schroder Real Estate Investment Trust Limited (the `Company') ACQUISITION OF STACEY BUSHES INDUSTRIAL ESTATE, MILTON KEYNES The Company announces that it has exchanged unconditional contracts to acquireStacey Bushes Industrial Estate in Milton Keynes for £9.2 million. The propertyproduces a rent of £755,726 per annum which results in a net initial yield of7.76% per annum. This follows the announcements regarding recent salesincluding the announcement dated 4 August 2014 with regards to the disposal ofWembley, which produced gross sale proceeds of £7.56 million and was anon-income producing site. The freehold property comprises a 213,536 sqft multi-let industrial estateimmediately adjacent to the A5 dual carriageway on the west side of MiltonKeynes. The property, whichwas originally constructed in the 1980's, hasrecently undergone an extensive refurbishment to provide a modern accommodationwith unit sizes ranging from 3,700 sqft to 10,000 sq ft. The property iscurrently let to12 tenants with an average unexpired lease term, assuming alltenant breaks are exercised, of 4.5 years. There are currently eight vacant units on the estate, representingapproximately 20% by area, providing scope to add value through a strategy tore-let the units to increase net income. Assuming the vacant units are re-letat rents of between £4 and £4.50 per sqft, the yield increases from 7.76% toapproximately 10%. Following completion of the acquisition, which is expected to take placeon 21August 2014, the Company will have cash of approximately £14.2 million anda net loan-to-value, based on the independent valuation as at 30 June 2014, ofapproximately 32%. For further information: Schroder Property Investment Management Limited: 020 7658 6000Duncan Owen / Nick Montgomery Northern Trust: 01481 745529David Sauvarin FTI Consulting: 020 3727 1000Dido Laurimore / Nina Legge