Disposal of Olympic Office Centre, Wembley

For release [16] September 2014 Schroder Real Estate Investment Trust Limited(the `Company' / `Group') Disposal of Olympic Office Centre, Wembley The Company announces that it has exchanged unconditional contracts withNetwork Stadium Housing Association Limited (`Network') to dispose of theOlympic Office Centre in Wembley for £15.4 million, reflecting a net initialyield of 6.7%. The price compares to the independent valuation as at 30 June2014 of £10.75 million. Network, a tenant in the building, has paid a 10% deposit and completion is dueon 19 December 2014 to coincide with expiry of its lease. The Company willcontinue to receive Network's rent equating to £514,000 per annum during theperiod between exchange and completion. Network is a leading provider ofaffordable housing to Brent Council and intends to pursue a mixed use officeand residential redevelopment scheme on the site. The 74,000 sq ft Olympic Office Centre is currently let to three tenants,including Network, and produces a total rent of £1.09 million per annum. All ofthe leases within the building expire on or before 24 February 2015. Completion of the Network disposal in December will conclude the successfulasset management and disposal strategy at Wembley that involved the Companysecuring outline planning consent in September 2013 for 400,000 sq ft ofresidential and student accommodation on the two acre car park adjoining theOlympic Office Centre. In tandem with this the Company also secured detailedplanning consent for additional car parking at the Olympic Office Centre that,whilst not implemented, preserved future flexibility. The combined disposal proceeds of the Network disposal and the recenttransactions with The Unite Group plc and Barratt Developments PLC total £38.3million which compares with the combined independent valuation in June 2013,immediately prior to securing the planning consents, of £16.5 million. Overthis period the Olympic Office Centre and sites generated a total rent of £1.09million per annum, meaning that redeploying proceeds into new investmentsshould enhance earnings. Since acquisition of the property in July 2004 for £8.4 million the OlympicOffice Centre and sites produced a property level total return of 19.5% perannum, compared with the Investment Property Databank (`IPD') Benchmark Indexover the same period of 4.1% per annum. -ENDS- For further information: Schroder Property Investment Management Limited: 020 7658 6000Duncan Owen / Nick MontgomeryNorthern Trust: 01481 745529David SauvarinFTI Consulting: 020 3727 1000Dido Laurimore / Nina Legge