REG - Schroder Euro Real - KPN Formal Notice to Terminate Lease

Schroder European Real Estate Investment TrustAnnouncement

16/12/2025 12:30

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RNS Number : 7939L  Schroder Eur Real Est Inv Trust PLC  16 December 2025

16 December 2025

 

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

("SEREIT" or the "Company" and, together with its subsidiaries, the "Group")

 

KPN gives formal notice to terminate lease

 

Schroder European Real Estate Investment Trust plc, the Company investing in
European growth cities and regions, provides a further lease update for its
Apeldoorn investment.

 

Further to the update provided in its Annual Results statement on the 5()
December 2025, the Company has now received formal notice from its tenant,
Koninklijke KPN N.V. ("KPN"), of its decision to terminate its lease. KPN
currently occupies a mixed-use office and data centre property in the
Netherlands, representing approximately 19% of the Company's portfolio income
and 6% of portfolio value as at 30 September 2025. The lease termination will
take effect from 31 December 2026.

 

The Investment Manager is pursuing a number of mitigation strategies, which
include marketing the asset to new occupiers, exploring alternative uses such
as medium-density residential development, or a potential sale to enable
capital redeployment into accretive opportunities.

 

Apeldoorn is centrally located in the Netherlands, at the intersection of the
North-South and East-West motorway axes, and is regarded as an attractive,
steadily growing residential region, offering affordable housing and a higher
quality of life compared to larger cities.

 

The Apeldoorn property was acquired in February 2018 for its income-generating
characteristics, and has delivered an unlevered total return of over 8% per
annum to date. As at 30 September 2025, the property was valued at €11.8
million, with valuations adjusted periodically to reflect the diminishing term
of the lease.

 

As previously highlighted, KPN's departure is expected to negatively impact
the Company's future income profile. In the event the Investment Manager is
unable to fully offset the loss of income from the Apeldoorn asset, the level
of future dividends or earnings cover will be impacted.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) no. 596/2014 which forms part of domestic UK
law pursuant to the European Union (Withdrawal) act 2018 ("MAR").

 

-Ends-

 

 

 

 

 

 Enquiries:

 Jeff O'Dwyer                                         Tel: 020 7658 6000

 Schroder Real Estate Investment Management Limited

 Natalia de Sousa                                     Tel: 020 7658 6000

 Schroder Investment Management Limited

 Dido Laurimore/Richard Gotla/Ollie Parsons           Tel: 020 3727 1000

 FTI Consulting

 

 

 

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