Schroder European Real Estate Investment Trust (SERE) has completed the acquisition of a data centre in Apeldoorn, the Netherlands, for around €20 mln.
The acquisition reflects a net initial income yield of 10%.
Following the deal, SERE has fully deployed all of its capital for a total investment of €235 mln in a 10-asset portfolio at a blended net initial yield of 6.5%.
The 23,700 m2 mixed use building’s primary usage is a data centre, with additional office and storage space. The building was refurbished in 2006 and 2015 and includes 495 parking spaces. It is let to a strong covenant, KPN, a Dutch telecom and IT service provider, with an initial term expiring 31 December 2026 and subject to annual indexation.
Jeff O’Dwyer, fund manager at Schroder REIM, commented: 'This acquisition demonstrates our ability to leverage Schroders’ in-country investment expertise and identify assets that fit with our investment strategy, being accretive to income and offering a number of value-enhancing asset management initiatives, in fast-growing European cities and growth industries.'
He added: 'Following the announcement that Casino Group has exercised an option to buy back two of our low yielding retail assets at a 10% premium to valuation, we are now working on opportunities to redeploy this capital when the sale completes in July 2018.'
