Schroder European Real Estate Investment Trust (Sereit), the company investing in European growth cities, has acquired a shopping centre in Seville, Spain, in a joint venture, worth about €52.5m (R771m). Schroder, a rand hedge for South African investors, focuses on European cities, and promises consistent income payouts, as opposed to seeking market-beating capital growth. It has managed to complete its first deal in Spain, one of Europe’s strongly recovering economies. Spain’s economy grew 3.2% in 2016 and 3.2% in 2015. Schroder’s portion of the Spanish city was worth €26.3m, reflecting a net initial yield of 6.2%. It represents the first addition to the portfolio outside the core markets of France and Germany. Sereit fund manager Tony Smedley said Seville was an attractive market, given its status as a tourist destination. Seville is the capital of Andalucía and Spain’s fourth-largest city and is an important tourist destination. The city is expected to outperform national averag...

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