LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd Wednesday said it has exchanged contracts with a subsidiary of Barratt Developments PLC to sell its remaining non-income producing site at the Olympic Office Centre in Wembley, North London, for GBP15.25 million.
Schroder REIT said that, once the disposal is completed, it estimates a 3.5% increase in its underlying pro-forma net asset value.
"The disposal is the successful conclusion of a strategy for the subject site involving securing outline planning consent for change of use from a car park to 227,000 square feet of residential and ancillary uses. Proceeds will be redeployed into income producing investments that are currently under consideration," the company said.
It said Barratt has already paid a 10% deposit on the site, and completion is due on September 23.
Following completion of the disposal of the site, Schroder REIT will still own the 74,000 square feet Olympic Office Centre, which as at June 30 was independently valued at GBP10.75 million, Schroder REIT said.
Schroder REIT shares were trading 2.8% higher Wednesday midday at 55.00 pence, while shares in Barratt Developments were up 1.8% at 373.70 pence.
Barratt also reported it full-year results Wednesday, while announcing a GBP950 million payout to shareholders over three years.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Barratt Developments (BDEV)
Schroder Real (SREI)
