Schroder Real Estate Investment Trust has acquired the Arndale Centre in Leeds in West Yorkshire, England, for £16.2 mln (€19.6 mln).
Schroder Real Estate Investment Trust has acquired the Arndale Centre in Leeds in West Yorkshire, England, for £16.2 mln (€19.6 mln).
The property was acquired out of receivership and comprises 125,834 sq ft (11,600 m2) of multi-let retail, leisure and office space located in Headingley, a densely populated suburb of Leeds.
The centre was acquired with proceeds from a share issue recently carried out by Schroder which raised around £17.2 mln.
The complex is let to 23 tenants on weighted average unexpired lease terms of over five years and generates an annual rent of £1.57 mln. Some 75% of the rental income stems from 20 tenants including Sainsbury’s, Morrisons, Wilkinsons and Pizza Express.
Commenting on the deal, Duncan Owen, head of property at Schroder Property Investment Management, said there was potential to generate further income and capital growth from asset management of the upper parts of the property.
Following completion of the acquisition, scheduled for 15 January 2014, Schroder will have around £15 mln in cash and a net loan to value of 40%.
The company said it is working on further acquisition opportunities and continues to believe that there is potential to enhance future returns to shareholders through a gradual increase in the size of the company.