Schroder Real Estate Investment Trust buys half of University of Law campus

18th Dec 2014 12:19

Schroder Real Estate Investment Trust has completed the acquisition of a 50% stake in the University of Law campus in London's Bloomsbury for £34m.Schroder UK Property Fund purchased the rest of the property for a further £34m, as the University of Law has entered a new 12-year lease without tenant breaks at a rent of £2.9m per year, with Schroder Real Estate Investment Trust's cut of the rent amounting to £1.43m a year."The acquisition of four buildings on two freehold parcels of land presents both a future opportunity to intensify and change use whilst also benefiting from an inflation-linked rental stream," Duncan Owen, head of real estate at Schroder, said in a statement on Thursday.According to the firm, the price reflects a net initial yield of 4% and the lease will be subject to five yearly, upwards-only rent reviews to the higher of two options.Schroder shares were up 0.43% to 58.5p at 12:29 on Thursday.