US investors takes profits after office-to-retail conversions
NorthStar Realty Europe has sold three UK properties to Schroders’ Regional Office Property Unit Trust for £31m, representing an 8% premium to net asset value.
The three assets, with a combined lettable area of 75,000 sq ft are located in Chiswick, St Albans and Glasgow. They are 100% occupied with a 5.5 year weighted average lease term. Since acquisition in April 2015, NRE has signed leases or lease extensions for over 43,000 sq ft including a new 10-year lease at Chiswick and a 15-year lease at St Albans to the Co-operative Group Food following receipt of a local authority consent for the change of use and conversion of the ground floor office space to retail.
Chief executive officer and president Mahbod Nia said: “We are pleased to have sold these non-strategic assets, realising a significant premium to EPRA NAV while further enhancing the quality of our remaining portfolio. These sales are the latest demonstration of our ability to enhance asset value and crystalise that value for our stockholders.”
CBRE acted for Schroder Real Estate.