The actively managed UK-focused, Schroder Real Estate Investment Trust (SREIT), has announced that it has exchanged unconditional contracts to sell Victory House in Brighton to an institutional purchaser for £36.1 million.
Set for completion on the 30th April, the £34.25m valued asset has generated an ungeared total return of 10.3% per anum since its acquisition in 2005.
The disposal of Victory House remains consistent with SREIT’s strategy to sell lower-yielding assets and to realise gains from asset management.
Victory House is an 84,988 sq ft office in Brighton city centre that is currently let to BUPA Insurance Services Limited and Mott MacDonald Limited with an average weighted unexpired lease term of 7.7 years.
The current rent is £0.79m per annum increasing to £1.88m per annum in September 2019.
Following the disposal of Victory House and the Wickes retail warehouse in Basingstoke (announced on 7th March), as well as the independent portfolio valuation as of 31st December 2018, SREIT’s consolidated net loan to value will fall from 27% to 21%.
Featured Image: Image courtesy of Schorders.