SREI Schroder Real Estate Investment Trust Limited

For release 2 March 2020

Schroder Real Estate Investment Trust Limited
("SREIT"/ the "Company" / "Group")

SIGNIFICANT LETTINGS PROGRESS

Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, provides an update on asset management activity.

Since 1 January, 16 new lettings, renewals and rent reviews have completed, generating additional income of approximately £370,000 per annum.  The Company is currently actively progressing a number of other lettings which are currently under offer that have the potential to generate additional annualised income of £420,000 per annum.

Manchester, City Tower (mixed-use, £ figures below represent SREIT’s 25% share)

• Agreement for lease exchanged for a new ten year lease to Coalfire Systems, a US based Cyber Risk Management advisor, for 5,500 sq ft situated on the 28^th floor at £26 per sq ft, equating to £35,529 per annum. The tenant will receive twelve months rent free, with a further three months if the break is not exercised in the fifth year. The rent is in-line with the Estimated Rental Value (“ERV”) as at 30 December 2019.
• New short-term lease completed to Sheppard Robson, an architectural firm, for 2,160 sq ft on 27th floor at £29.50 per sq ft equating to £15,900 per annum.  This compared with an ERV of £12,125 per annum. No rent free incentive was granted.
• Following the recent letting to Lidl at City Tower good progress is being made letting the ancillary retail and leisure. For example, a new ten year letting has been completed with Triple Two Coffee for a 1,660 sq ft retail unit at a rent of £17,500 per annum versus an ERV of £16,475 per annum in return for 9 months rent free.

Norwich, Union Park (multi-let industrial estate)

• Agreement for lease exchanged for a new ten year term to Quentor Limited, a motorsport manufacturer, for a 39,935 sq ft unit at a stepped rent rising from £181,125 per annum (£4.50 per sq ft) in years 1 and 2, to £191,188 per annum (£4.75 per sq ft) in year 3 and £201,250 per annum (£5.00 per sq ft) in year 4 and 5. The tenant will receive six months rent free.
• New lease completed for a three year term to Qualitas Limited, a telecommunications company, for a 3,400 sq ft unit at £5.34 per sq ft equating to £18,260 per annum, in-line with ERV. The tenant will receive four months rent free.

York, Clifton Park (office)

• Agreement completed with Balfour Beatty to remove the tenant break option in June 2020 and fix the rent review at £138,348 per annum, equating to £15.25 per sq ft, in return for six months rent free. The lease expires in June 2025 and the new rent represents a 35% uplift on the previous headline rent.

-ENDS-

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