Schroder pairs retail with leisure for 2018

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Schroder pairs retail with leisure for 2018

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Published Date: 2018-01-09 | Source: Stephen Gunnion | Author: Stephen Gunnion

Schroder pairs retail with leisure for 2018

The European property investor has taken on leisure specialist Urban Planet as an anchor tenant

Schroder European Retail Estate Investment Trust (REIT) has secured a new tenant at Metromar, the shopping centre in Seville, Spain that it bought a 50% stake in last year - Urban Planet.

The European property investor has agreed on a five-year anchor lease with Urban Planet, which it describes as one of Spain's leading leisure specialists. It has the option to extend the lease on 1 200 square metres of space for a further five years. Urban Planet manages and implements leisure experiences linked to physical activity. At Metromar, the primary activity will be trampolining, as well as climbing, dodgeball, a children's play area and a food & beverages offering. Schroder says the new space will complement the centre's existing leisure offering and is expected to significantly drive footfall and the amount of time consumers spend at the shopping centre.

Related article: Schroder targets more Western European acquisitions

Shroder says its new tenant will start trading this year and will invest significant capital in infrastructure for its leisure unit, demonstrating its commitment to the centre.

The REIT bought Metromar last May in a joint venture with Immobilien Europa Direkt for about €52.5 million, reflecting a net initial yield of 6.2%. The 23 500 square metre shopping centre is 99% let to 50 tenants, with a significant convenience retail offering and is anchored by a 2 300 square metre Mercadona grocery supermarket.

Schroder CEO Jeff O'Dwyer says taking Urban Planet on as a tenant meets one of its objectives in investing in the centre as it fills a previously non-income producing space with a quality leisure operator.

Its shares closed 0.3% higher at R18.



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