Schroder disposes of Olympic Office Centre

Schroder Real Estate Investment Trust (SREI) has disposed of their Olympic Office Centre in Wembley for £15.4m.

The company revealed that contracts had been exchanged with buyer Network Stadium Housing Association.

The agreed price of £15.4m reflects a net initial yield of 6.7% and compares to an independent valuation of £10.75m at 30 June.

Network, currently a tenant in the building, is a provider of affordable housing to Brent council. The firm intends to redevelop the 74,000 square foot aquisition as a mixed use office and residential site.

Subsequent to the exchange of contracts, Network paid a 10% deposit, and will continue to pay rent equal to more than £0.15m until the contract completes on 19 December.

Currently, the Olympic Office centre is let to three tenants, including Network, and produces a rent of £1.09m per annum.

SREI acquired the property in July 2004 for £8.4m. Since then, The Olympic Office centre has produced a yield of 19.5% per annum, compared with the investment property databank benchmark index over the same period of 4.1% per annum.

SREI’s share price was 0.92% higher as of 14:34.