Schroder REIT sells office property to University of Bristol

UK-focussed REIT Schroder announced that it exchanged unconditional contracts to sell St Augustine’s Courtyard in Bristol to the University of Bristol for £11.75m.

The London-listed firm said the sale price compared with the independent valuation as at 31 December of £7.2m, and completion was due on 7 April.

St. Augustine’s Courtyard was a vacant 31,785 square foot city centre office property that had just undergone a major refurbishment.

“The plan was to let the property,” the board said in a statement.

“The disposal to the University of Bristol, who are acquiring for their own occupation, enables the company to crystallise significant performance following refurbishment without taking any letting risk.”

Schroder said the disposal also reduced the portfolio void rate, with the property representing 2% of the total void as at 31 December, calculated as a percentage of rental value.

Following completion the portfolio void rate would reduce to approximately 6%.

“The company is considering a number of initiatives which should lead to successful redeployment of the disposal proceeds but will continue to take a disciplined approach.”