News releases

Schroder UK Property Fund Completes £34.10 million Steel Park acquisition

Schroder UK Property Fund has acquired Tata Steel’s UK distribution hub, The Steel Park, Wednesfield in Wolverhampton from Threadneedle Property Investments Management for £34.10 million, reflecting a net initial yield of 9.00%.

01/04/2014

Schroder UK Property Fund has acquired Tata Steel’s UK distribution hub, The Steel Park, Wednesfield in Wolverhampton from Threadneedle Property Investments Management for £34.10 million, reflecting a net initial yield of 9.00%.

The 60 acre site comprises three industrial warehouses, a Headquarters office building and a Study Centre totalling 761,614 sq ft. The entire site is let to Tata Steel UK Limited by way of six co-terminus occupational leases. The leases have c. 12 years unexpired and benefit from 2.5% per annum increases compounded and receivable five yearly.

James Lass, Fund Manager of Schroder UK Property Fund said:

“This purchase forms a key part of our strategy to invest in regional real estate underpinned by the recovery we are seeing in UK manufacturing. We continue to witness a significant yield arbitrage over other parts of the market and anticipate this gap will narrow as we move further into the cycle.”

Tata Steel UK are a major producer and distributor of steel for the automotive, construction, energy, rail, and consumer goods sectors and employ 18,500 people in the UK. The Steel Park is the largest Tata distribution facility in Europe and was formerly occupied by Corus prior to their acquisition by Tata in 2007.

Knight Frank represented Schroders; Collingwood Rigby acted for Threadneedle.

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Schroder Property

Schroders has managed property funds since 1971 and currently has £10.6 (€12.8 /US$17.6) billion of gross property assets under management as at 31 December 2013.

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.

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Schroders plc

Schroders is a global asset management company with £262.9 billion (EUR316.0 billion/$435.4 billion) under management as at 31 December 2013. 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.

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