Schroder European Real Estate Investment Trust has sold a grocery-anchored retail asset in Frankfurt, Germany, to an undisclosed buyer for €11.8m. 

The sale price was in line with the 30 September 2024 valuation.

Schroders acquired the 4,525sqm asset in 2016 for around €11m and has since improved it and secured long-term leases with Lidl and Fresnapf.

Jeff O’Dwyer, fund manager for Schroder Real Estate Investment Management, said: “This asset was acquired in April 2016 and has provided the company with a stable income stream over the eight years of ownership.

“Following the completion of our asset management plan, and given the limited scope for future rental growth, we felt that now was the right time to sell and crystallise a profit for our shareholders. The sale demonstrates the current investor demand for assets in the grocery sector, and we expect to use the sale proceeds to enhance shareholder returns.”

The transaction is expected to complete on 31 March 2025, allowing Schroder European Real Estate Investment Trust to retain all income until then.

To read the latest IPE Real Assets magazine click here.

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