Schroder European Real Estate Investment Trust (SERE) has expanded its portfolio with the acquisition of three industrial properties in the Netherlands.
SERE, which invests in European growth cities, said it has agreed to buy a 15,290sqm warehouse in Venray, a 9,149sqm warehouse in Houten and a 2,500sqm mixed-use building in Utrecht for a total purchase price of €19.8m.
The amount being paid reflects a combined net initial yield of 6.5%, with a weighted unexpired lease term of around 9 years, SERE said.
On completion of the acquisitions, the portfolio will comprise 12 properties with a value of around €222m.
Jeff O’Dwyer, at Schroder REIM, said: “We have been actively looking to further diversify the portfolio and increase the company’s allocation to the high growth industrial and logistics sector.”
These assets are in established industrial locations and offer a stable income profile with growth upside from broader improving city and regional fundamentals, O’Dwyer said.
“With prime Dutch logistic yields breaking 4.5% we see value in smaller lot sizes, particularly in locations where investment and occupier demand is strong.
“These acquisitions demonstrate our ability to leverage Schroders’ European investment expertise to identify new investment opportunities and quickly recycle proceeds from disposals, capitalising on opportunities to realise profit and deliver shareholder value.”
