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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now