Schroder trust sells for €24m in the UK

Schroder Real Estate Investment Trust has exchanged conditional contracts to sell Reynards Trading Estate in Brentford, UK to Notting Hill Home Ownership.

The base price comes to £20 mln (€24 mln), with completion subject to securing a residential planning permission.

Reynards Trading Estate comprises a 16,000 m2, substantially vacant industrial estate located in a mixed-use area.

As at 30 June 2013 the estate was valued at £16 mln and produced short term income of £200,000 per annum. The Schroder trust's strategy was to secure residential planning permission and sell the asset, but a residential planning application was refused by the Secretary of State in March 2013.

As part of the sales agreement, Notting Hill is now obliged to 'use all reasonable endeavours to pursue a residential planning permission at their own cost'.

The contract also forces Notting Hill to make a pre-planning application and carry out local community consultation during 2013 and early 2014, with the planning application submitted shortly thereafter. During this period the Schroder trust will continue to be responsible for managing Reynards Trading Estate and will receive the rental income.

The contract has a long stop date of 31 December 2014 which is capable of extension if a planning decision is awaited, the company said.