Schroder European Real Estate Investment Trust, which invests in European growth cities, says robust industrial portfolio valuations continue to offset declines in other sectors, primarily driven by shortening lease terms.
Releasing its end-March property portfolio valuation on Monday the group said its direct investment property portfolio was independently valued at €194m, reflecting a marginal like-for-like decrease of 0.3%, or €0.6m, over the quarter.
The industrial portfolio valuation increased 1.8% (€1.3m), driven by a combination of continued positive investment sentiment and rental value increases. The assets in Venray I (5%), Nantes (5%), Utrecht (5%), Rumilly (2%) and Venray II (1%) all saw valuation growth during the quarter.
Office portfolio valuations declined 0.9% (€0.5m), a significantly smaller decline versus the previous quarter's 2.4%.
Alternative portfolio valuations fell by 2.7% (€0.6m), with the Cannes car showroom remaining unchanged, while the mixed-use data centre in Apeldoorn declined by €0.6m, or 4%, due to the decreasing remaining lease term.
The group said the €11.8m sale of the company’s grocery asset in Frankfurt would be completed this month, net of expected transaction costs.
The group said in line with best practice and governance, the company would be changing valuers from Knight Frank to Savills from the end of June.
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