LONDON (ShareCast) - (Sharecast News) - Schroder European Real Estate Investment Trust announced the sale of a grocery-anchored retail asset in Frankfurt, Germany on Tuesday, for €11.8m.
The London-listed firm said the sale price aligned with the asset's valuation as of 30 September.

Acquired in April 2016 for €11m, Schroder said the 4,525 square metre property benefited from its asset management initiatives, including securing longer-term leases with major tenants Lidl and Fresnapf.

The transaction was scheduled to complete on 31 March, with SEREIT retaining all rental income generated by the asset until that date.

Schroder said the sale would support its strategy of active portfolio management across European growth cities.

"This asset was acquired in April 2016 and has provided the company with a stable income stream over the eight years of ownership," said Jeff O'Dwyer, fund manager for Schroder Real Estate Investment Management.

"Following the completion of our asset management plan, and given the limited scope for future rental growth, we felt that now was the right time to sell and crystallise a profit for our shareholders.

"The sale demonstrates the current investor demand for assets in the grocery sector, and we expect to use the sale proceeds to enhance shareholder returns."

At 1004 GMT, shares in Schroder European Real Estate Investment Trust were up 0.53% at 63.64p.

Reporting by Josh White for Sharecast.com.

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