Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000
www.schroders.com
Schroders announces first Regional
Office Property Trust acquisition
7 January 2016
The Regional Office Property Unit Trust, advised and managed by Schroder Real Estate, has
acquired the Aztec Centre on Aztec West Business Park in Bristol from Aztec Centre 2 LLP for
£10.375 million. The price reflects a net initial yield of 7% based on the contracted rent of £773,561
per annum.
The Aztec Centre is a freehold property prominently located at the front of Aztec West Business Park,
Bristol’s prime out of town office location. It comprises a 54,555 sq ft multi-let office building with
ancillary ground floor retail. The property is let to 11 tenants at an average rent of £16 per sq ft with an
average unexpired lease term, assuming all tenant breaks are exercised, of approximately four years.
There are currently five vacant units on the ground floor, representing approximately 15% by area,
creating an opportunity to add value by refurbishing and re-letting the units to increase net income.
Assuming market rents on letting the reversionary yield is approximately 8%.
This acquisition is the first for the Regional Office Property Unit Trust that launched in December 2015
with £100 million of funding available. The fund is seeking to capitalise on the recovery in regional
office markets by acquiring property offering good fundamentals in target cities and towns with strong
and diversified local economies.
CBRE acted for Schroder Real Estate and Allsop acted for Aztec Centre 2 LLP.
Nick Montgomery, Head of UK Real Estate Investment at Schroder Real Estate, said:
“This acquisition satisfies our investment criteria by offering a good quality building in an established
location. There is also potential for income growth from asset management as well as rising rental
values due to the increasing differential between Bristol city centre rents and good quality space out of
town where there has been no recent new development.”
Schroders plc
Registered office at above address
Reg. 3909886 England
1
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Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000
www.schroders.com
For further information, please contact:
Estelle Bibby
Tel: +44 (0)20 7658 3431 estelle.bibby@schroders.com
Charlotte Banks
Tel: +44 (0)20 7658 2589 / charlotte.banks@schroders.com
Notes to Editors
For trade press only. To view the latest press releases from Schroders visit:
http://ir.schroders.com/media
Schroder Real Estate
Schroders has managed real estate funds since 1971 and currently has £12.4 billioni (€16.8 billion
/US$18.7 billion) of gross real estate assets under management as at 30 September 2015.
Most of the property funds referred to are unauthorised collective investment schemes as defined in
the Financial Services and Markets Act 2000. Promotion of these funds is restricted and access to full
information about these funds is only available to those exempt from the restriction.
For further information about Schroders’ property business visit www.schroders.com/realestate
Schroders plc
Schroders is a global asset management company with £294.8 billion (EUR 400.0 billion/$446.5
billion) under management as at 30 September 2015. Our clients are major financial institutions
including pension funds, banks and insurance companies, local and public authorities, governments,
charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate
from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders
has developed under stable ownership for over 200 years and long-term thinking governs our
approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
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i
Includes holdings of Real Estate Capital Partners and Schroders Multi-asset Funds in the Real Estate AUM
Schroders plc
Registered office at above address
Reg. 3909886 England
2
For your security, communications may be taped or monitored