Schroders Real Estate Investment Trust has bought the freehold interest in St John’s retail park, Bedford for £31.8m – a 6.5% yield.
The site comprises a 130,000 sq ft retail warehouse park let to 12 tenants with an adjoining 11,600 sq ft office block.
It produces £2m rent annually, at a rate of £16 per sq ft.
The average unexpired lease term, assuming all tenants break at the earliest opportunity, is 7.9 years.
Schroders global head of real estate Duncan Owen said: “The acquisition follows the disposal of low or non-income producing property and results in SREIT being substantially invested with a fully covered dividend. Converting to UK-REIT status has enabled SREIT to be more agile and competitive by extinguishing the capital gains in the vendor special purpose vehicle and therefore enhancing SREIT’s initial income return.”
